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PREDATORY PRICING UNDER COMPETITION ACT 2002

Predatory pricing it is a method of pricing in which a seller sets a price which is so low that other sellers or suppliers cannot compete with him and they are forced to exit the market. Predatory pricing not only forces other sellers to leave the market but such an act also restricts others from entering the market. Because of such a nature, predatory pricing is not allowed and is banned in many countries. Such an act is considered a violation of competition laws. On the face of it, it is not possible to make out whether there is any predatory pricing activity involved or it is a mere competition between the sellers.