The Importance of the Intent in Predatory Pricing Cases

Abstract

One of the most important principles of EC law is the prohibition of the abuse of dominant positions as established in Article 102 TFEU. Predatory pricing is one of the forms of abuse of a dominant position. In order to decide whether the dominant undertaking has referred to predatory pricing it is necessary to evaluate several elements, one of which is analysis of the intent of the undertaking. European judicial institutions and Commission while assessing predatory pricing give too much importance to the intent of the dominant undertaking. It should be recognized that intention to use predatory pricing is only additional evidence for the determination to undertake an abused dominant position. Intent to eliminate competitors and to take a big part in the market is the aim of all dominant undertakings, the driving force of competition. Competition law officers should inquire whether pricing will cause elimination of competitors and damage to consumers. If competition law officers will provide too much importance to consideration of intent in that case competition law rules will be applied to strict and dominant undertakings and will not charge low prices that are good for consumers.