| Froogle pulling a Redmond?
Squeezing the competition with predatory pricing |
john316
msg:1233736 | 8:43 pm on Dec 8, 2003 (gmt 0) |
Existing shopping engines depend on merchant (advertising) revenue to fund operations and innovation, with froogle muscling in with free feeds to the merchant, do they run into anti-trust provisions? The Supreme Court has established three criteria for proving an instance of predatory pricing: (1) Prices must be below an appropriate measure of cost, (2) these artificially low prices must be capable of driving rivals from the market, and (3) the perpetrator must have a reasonable prospect of using its monopoly power to recoup its short-term losses. Sounds like a case.
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mcavic
msg:1233737 | 9:29 pm on Dec 9, 2003 (gmt 0) |
Google isn't a monopoly. They're offering free services, and people are perfectly able to use another service, free or not.
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john316
msg:1233738 | 9:34 pm on Dec 9, 2003 (gmt 0) |
As long as it stays free, its okay, just can't use dominant market position to muscle out competitors with predatory pricing. A violation would occur if the free option disappeared after the competition was damaged.
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