When does the act of price undercutting become classified as “predatory pricing” within the scope of competition law, and what are the associated conditions?
Turkey introduced competition law in 1994 with the objective of establishing and upholding the necessary circumstances for the effective operation of its market economy. Consequently, the concepts linked to competition law and the culture of competition are relatively new for many individuals, often leading to confusion.
Since its inception, certain complaints submitted to the Competition Authority have alleged instances of “unfair competition resulting from rivals undercutting prices,” “certain businesses selling products at a loss,” and “certain businesses engaging in dumping.” These allegations have prompted actions under Law No. 4054.
In this context, it has become crucial to elucidate when and under what circumstances the practice of “price undercutting” qualifies as “predatory pricing” according to competition law and would thus breach the Law on Protection of Competition.
Originally constituting a segment of the master’s thesis titled “Dumping and Predatory Pricing within the Framework of the Customs Union,” this article offers insights into the economic underpinnings and theoretical structure of the conduct referred to as “predatory pricing” in competition law. The intention is to trace the evolution of this practice within the context of U.S., EU, and Turkish competition law frameworks, supplemented by illustrative examples.
Type of the Work : Article
Language : Turkish
Copyright : Turkish Competition Authority
Citation : EKDİ, Barış, “Rekabet Hukuku Açısından Yıkıcı Fiyat Uygulaması”, Rekabet Dergisi, Sayı: 10, Yıl: 2002
