Comment by gavinray
4 years ago
> It's similar than selling at loss until your smaller competitor is out of business.
Why is this considered illegal or unethical? This seems like a fairly legitimate tactical move to me.
It's like a war of attrition -- you allow yourself to suffer losses for the sake of ultimately winning. At least in this scenario, the main player is also slightly fucking themselves over, instead of just you.
> Why is this considered illegal or unethical?
After competitors are knocked out of the market, the survivor can raise prices to above-market levels.
https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
Ah this is true, hadn't considered this.
It seems like there's a lot of this all the time though?
Everywhere I've lived, my only choice of ISP was Comcast. Whatever Comcast told me I needed to pay for internet, that's what I was going to pay lol.
For mobile phone providers, in the US your options are generally AT&T, Verizon, and T-Mobile, which I'm sure collude on prices and fix them. Same with Cloud services providers, etc