Media predatory-pricing ruling brings clarity to competition law
Appeal court rejects tribunal’s elevation of intent and says the law requires objective proof
Few areas in competition law are more prone to dogmatic disputation than predatory pricing, the practice whereby an incumbent company seeks to force a rival from the market through sustained loss-making low prices. It is critical for a competition regime to get predatory pricing right as it intervenes in the very heart of the competitive process, whereby one company seeks to gain business from another by undercutting its prices. In a world of omnivorous tech giants and plucky entrants, the boundary where a dominant company’s discounting crosses into prohibited conduct should be clear. In the recent Media24 vs Competition Commission ruling, the Competition Appeal Court has drawn a clear line. For a case that spells out the law on pricing for a host of new industries, Media24 vs Competition Commission carries the distinct whiff of printer’s ink. It concerned a battle between two small community newspapers in the Free State mining town of Welkom in the early to late 2000s. These humble...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.