1. Types of predatory pricing disputes
1.Predatory abuse: Market dominants sell products or services at extremely low prices, possibly below cost levels, in order to exclude competitors and establish a monopoly.
2.Competitive exclusion: Through a sustained low-price strategy, market dominants may exclude competitors, resulting in a lack of diversity and competition in the market.
3.Market monopoly: Market dominants may establish a monopoly position through predatory pricing, which can then be raised to the detriment of consumers.
Monopoly II. Evidence Required
When dealing with predatory pricing disputes, plaintiffs and defendants need to prepare a variety of evidence to support their claims.
1.Policy Documents: Relevant policy documents, pricing strategies, and communication records can help demonstrate predatory pricing behavior.
2.Cost analysis: Cost analysis can be used to determine if there is a situation where pricing is lower than cost.
3.Market Analysis: Market analysis and testimony from economists may be used to assess the impact of market dominance and predatory pricing.
4.Contracts and correspondence records: Contracts, correspondence, emails, and chat records can help demonstrate market dominators' pricing strategies and their impact on the market.
5.Witness Testimony: Testimony from individuals or company representatives associated with predatory pricing practices can provide information about the specifics of the pricing strategy and the details of its implementation.
3. Principles of the Court's adjudication
Courts will generally consider the following factors when dealing with predatory pricing disputes:
1.Proof of predatory pricing: The court will assess whether the pricing is below cost and whether there is evidence that the market dominant intent is to exclude competition.
2.Dominant market position: The court will assess whether the dominant market person has a dominant market position, which usually involves an analysis of market share and market competition.
3.Market impact: Courts consider the impact of predatory pricing practices on market competition and other market participants.
4.Economic Analysis: Courts may rely on the analysis of economic experts to assess predatory pricing behavior and market impact.
5.Sanctions: Courts may require market dominants to cease predatory pricing practices, pay fines, or hold other legal liabilities.
Predatory pricing disputes may involve a variety of unfair competition acts, which require sufficient evidence to support their respective claims. Courts will typically consider factors such as evidence of predatory pricing, market dominance, and market influence. When dealing with such cases, it is advisable to seek the advice of a professional lawyer to ensure that your rights and interests are effectively protected.
This article cannot be regarded as legal advice or opinions on specific cases, and is only the adjudication rules of the court when the author's team handles similar cases. If you encounter legal problems, you can contact lawyer Xu Baotong for more targeted advice and solutions.
Mr. Xu Baotong is a senior partner of Shanghai Jinkun Law Firm, a director of the International Bar Association (IBA), a mediator of the Asian Alternative Dispute Resolution and Mediation Center, a Chinese arbitrator, a member of the Chartered Institute of Arbitrators, and an arbitrator of the Thai International Arbitration Center (THAC). Xu Baotong's lawyer team focuses on corporate, commercial, equity, contract litigation, arbitration and economic crimes, and has more than 10 years of experience in court trial practice and rule research.