Predatory Pricing, And Its Legal Regulation

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. The first part of this paper is a general introduction about the concept,the core and the character of predatory pricing. And then compares predatory pricing with some similar concepts, such as dumping,normal discount. Based on these basic concepts, the paper makes a general framework about predatory pricing in the first part.The second part explicates the standards about how to affirm predatory pricing by comparing two kinds of normal standards. In the next part ,I focus on the comparison of predatory pricing in United States and European Union. And by comparing I get two important messages.The forth part I analyze special characters about how to regulate the predatory pricing in Chinese. And I point out the shortages.In the end of this part, I give some advices about how to accomplish the legal regulation of predatory pricing.