The Research On The Legal Regulation Of Predatory Pricing

Predatory Pricing is a typical kind of exclusive behavior that some dominant enterprises abuse their advantages to pursue and keep the monopoly and then to exclude other competitors by sale prices lower than cost price in certain scale of markets during certain period. After gaining their ends of excluding the competitors and forming the monopolistic construction, these enterprises will raise up the price to a great extent. Because they disturbs the normal business, further strengthens the market ascendancy of advantageous enterprises, changes the centrality of this trade and leads to the monopolization, these sorts of behaviors are all forbidden in legislated competition laws of various countries. But how to judge the behavior of predatory pricing are still controversial in academic and pragmatic walks at home and abroad. With the reform of our economic systems, this unfair pricing competition like predatory pricing begins to emerge in our economy. Our incomplete economic systems, imperfect competition law systems and the immature relevant laws and stipulations consequently result in ineffective judgment or hypercorrection of predatory pricing in practice that disrupts the order of normal pricing competition. Starting from its origin, this essay will analyze predatory pricing from aspects of ontology, axiology and cybernetics. Ontology is mainly devoted to solve the problem: "What is the predatory price?". Point out that the predatory pricing is a typical kind of exclusive behavior that some dominant enterprises abuse their advantages to pursue and keep the monopoly, to exclude other or potential competitors by continual sale prices higher than their own products' cost but lower than that of their competitors unlawfully and then to make a monopolistic price. Axiology is to solve the problem: "What are the sequent effects of the predatory pricing?" The predatory pricing disrupts the normal competition order, impairs other competitors' equal competition rights of the same trade, deforms the collocation mechanism of resources and results in the waste of resources and impairment of holistic social welfare. Cybernetics is mainly to deal with predatory pricing. After surveillance and analysis to the relevant laws and stipulations of other countries, this paper puts forward the adaptive and systematic division standards which should be adopted in our country with comprehensive consideration to many factors as market construct, advantages of dominant enterprises, subjective exclusive intention, product cost, output and the durative of lower sale prices. In this way can we protect the normal pricing competition as well as make legal stipulation for predatory pricing. Furthermore, this essay provides an innovative measure—frozen pricing system for the...