Re: BellSouth does it again... (fwd)

patrick@value.net
Tue, 19 Nov 1996 17:27:52 -0800 (PST)

On Tue, 19 Nov 1996, MegaZone wrote:

> Once upon a time Jason Hatch shaped the electrons to say...
> >On Tue, 19 Nov 1996, Jeff T. Carneal wrote:
> >> internet + flat rate phone service was actually LOSING them money, yet
> >> they continue to do it. Unless I'm mistaken, isn't it illegal to lose
> >> money in order to beat your competition and drive them out of
> >compete with netscape. Basically, it could only be said that it's only
> >illegal if you get caught -- meaning it will continue to happen until ISPs
>
> It isn't illegal.

Yes it is.

> It is quite legal to deliberately lose money to hurt your competition.

No, it is not. From USC 15 chapter 13:
http://www.law.cornell.edu/uscode/15/13.html

13a. Discrimination in rebates, discounts, or advertising service
charges; underselling in particular localities; penalties

It shall be unlawful for any person engaged in commerce, in the course of
such commerce, to be a party to, or assist in, any transaction of sale, or
contract to sell, which discriminates to his knowledge against competitors
of the purchaser, in that, any discount, rebate, allowance, or advertising
service charge is granted to the purchaser over and above any discount,
rebate, allowance, or advertising service charge available at the time of
such transaction to said competitors in respect of a sale of goods of
like grade, quality, and quantity; to sell, or contract to sell,
goods in any part of the United States at prices lower than those exacted
by said person elsewhere in the United States for the
purpose of destroying competition, or eliminating a competitor in such
part of the United States; or, to sell, or contract to sell, goods at
unreasonably low prices for the purpose of destroying competition or
eliminating a competitor.

Why Microsoft and the Bells don't have their assess hauled into court is
beyond me.

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