Comment by tovej
16 hours ago
Subsidizing the cost of developing a product isn't necessarily bad, but predatory pricing that prohibits competition would be.
Not sure that this case is either. This is just idiots breaking the TOS.
16 hours ago
Subsidizing the cost of developing a product isn't necessarily bad, but predatory pricing that prohibits competition would be.
Not sure that this case is either. This is just idiots breaking the TOS.
So exactly what’s the difference between “predatory pricing” and pricing to gain customers and market share? Should Sony have to sell the first PlayStation off the line at $2000 (making up a number) so it can sell it at a marginal profit from day one or should it sell it below cost knowing that that over its lifetime if it stays at that price, it will both gain customers and sell at a profit in year 4 as the price of technology comes down and it gets economies of scale?
The EU uses an effects-based model. If below-cost prices are driving other actors out of business or has other anti-competitive effects, it is predatory pricing.
Reason #1642 that the technology industry in the EU sucks…
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