Take a look at some of the class action unfair trade practice suits filed
against WallMart a couple years back. By supposedly taking a hit on
everything to put small mom and pop local stores out of business they
promptedthe Justice Dept. to take a look. IANAL though, but as far as I
know if proven, it would've been illegal.
Just my .02
Christopher LaDuke
CustomNet
WWW.CustomNet.Net
>
> It isn't illegal.
>
> It is quite legal to deliberately lose money to hurt your competition.
> There is nothing that says a business MUST be profitable. If you have deep
> pockets you can drop your prices below break even and soak up the loss if
> it means your competition will go bankrupt first. Look at rate wars in
> the airline industry.
>
> I don't know about today, but for a long time Ford lost money on every
> Escort that sold. They had to sell them to keep their corporate average
> emissions level below federally mandated levels. They made up the difference
> on big luxury cars that were over the emissions limit and that had a large
> profit margin.
>
> Was it fair to other small car makers that Ford could undercut their cost
> by taking a loss? *shrug* That's life.
>
> In the case of RBOC ISPs the only thing that might be illegal is if those
> deep pockets violate antitrust.
>
> -MZ
> --
> Livingston Enterprises - Chair, Department of Interstitial Affairs
> Phone: 800-458-9966 510-426-0770 FAX: 510-426-8951 megazone@livingston.com
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>