The notion of predatory pricing in competition law

Abstract

This thesis studies the concept of predatory pricing in depth. Through the years, many scholars around the world wrote on this phenomenon, noting that it is very difficult to counteract this problem since it is equally problematic to distinguish price predation from normal competitive pricing. This thesis focuses on the present legal background which surrounds predatory pricing. It determines the main flaws which exist in the legal sphere and subsequently the thesis lodges certain proposals which could potentially improve the present scenario surrounding price predation. Chapter 1 examines the fundamental criteria surrounding competition law. It looks at both the EU as well as the US laws and it pinpoints what are the basic elements which would constitute an abuse of a dominant position in the case of EU law, or monopolisation in the case of US law. Chapter 2 focuses on the theories which scholars propose on how to identify predatory pricing. It analyses different factors and cost measures which could be considered to establish price predation. Chapter 3 elaborates on the views put forward by Chicagoan scholars who believe that this phenomenon does not need to be regulated. Some go to the extent to say that it does not even exist. This chapter discusses these opinions and comes to a conclusion on whether or not these theories are tangible. Chapter 4 looks at how judicial bodies deal with the issue of price predation. This chapter pinpoints the fundamental criteria which courts consider when approaching the subject of predation. The thesis shall then conclude with some recommendations, based on conclusions reached from a detailed study on this phenomenon.