The EU Competition Law Treatment of Predatory Pricing

Predatory pricing is a violation of EU competition law if a dominant company charges prices that are below its costs with the intent of driving competitors out of the market or preventing them from entering. The EU Commission and national competition authorities can investigate and take action against companies engaging in predatory pricing. In order to prove predatory pricing, the EU Commission must show that the prices are below cost, that the company is dominant in the market, and that the company has a specific intent to eliminate or restrict competition.