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Predatory pricing is when a company sells a product at a very low price, lower than its cost, in order to drive away the competition and enable the company to take advantage of greater [[market power]] in the future. This is illegal under the antitrust laws.
For example, Microsoft initially gave away its Internet Explorer for free and destroyed the browser leader, Netscape. However, the illegality of predatory pricing can be difficult to prove.
For example, Microsoft initially gave away its Internet Explorer for free and destroyed the browser leader, Netscape. However, the illegality of predatory pricing can be difficult to prove.