Predatory pricing will typically involve selective reduction of prices, intended to damage a competitor.\u00a0 The reduction will typically be to below-cost levels.\u00a0 Using its economic strength, the dominant undertaking may be able to take losses while driving the weaker competitor out of the market.<\/p>\n
The Court of Justice has indicated that pricing might be considered predatory, if it is below the average variable costs, thereby not covering fixed costs.\u00a0 Between average variable cost and average total cost, pricing will not be presumed predatory, but it may be shown to be such, where it is part of an intentional course of conduct intended to drive out the competition.<\/p>\n
In practice, it may be difficult to produce evidence as to the elements of costs for the above purposes and evidence of the intentions of the dominant undertaking.\u00a0 It might be argued that all undertakings seek to eliminate their competitors and that in many contexts, this may constitute effective competition The circumstances will need to be examined in each case.<\/p>\n
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Definition of Abuse Article 102 of the EU Treaty sets out indicative examples of abuse of a dominant position.\u00a0 They include; directly or indirectly, imposing unfair purchase or selling prices or other unfair trading conditions; limiting production, markets or technical development, to the prejudice of consumers; applying dissimilar conditions to equivalent transactions with other trading […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[158,125],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/404"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=404"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/404\/revisions"}],"predecessor-version":[{"id":18738,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/404\/revisions\/18738"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}