Ayushi Parwani, Dharmashastra National Law University
Introduction
“The essence of predatory pricing is pricing below one’s cost to eliminate a rival.”1
Predatory pricing, a strategic manipulation in which companies deliberately set prices below production costs to undermine competitors or discourage new market entrants, has remained a focal point of regulatory scrutiny worldwide. This pricing tactic has long drawn the attention of policymakers and regulators due to its potential to distort competition and harm consumer welfare. The practice of predatory pricing has been consistently identified as an exclusionary tactic aimed at consolidating market power and inhibiting the growth of competitors.
The rise of digital platforms and e-commerce has introduced new dimensions to the debate surrounding predatory pricing. With the emergence of online marketplaces and tech-driven business models, concerns have grown regarding the potential abuse of market dominance through aggressive pricing strategies. The ease of price manipulation and the ability to rapidly adjust pricing algorithms have raised questions about the adequacy of existing regulatory frameworks in addressing these contemporary challenges.
Regulatory bodies are often focused on ensuring that the trade environment adopts a healthy competition while protecting against unfair anti-competitive practices. As a result, several jurisdictions have specific regulations against predatory pricing practices. This paper aims to analyze and compare the regulatory environments of India and the European Union with a focus on predatory pricing.
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