The EU Competition Law Treatment of Predatory Pricing in the Digital Economy

In the European Union, competition law prohibits predatory pricing, which occurs when a company sets prices at a level that is below its own costs for the purpose of driving competitors out of the market. This can be particularly relevant in the digital economy, where online platforms can use their market power to engage in predatory pricing to gain market share. The European Commission and national competition authorities have the power to investigate and take enforcement action against companies that engage in predatory pricing. In determining whether pricing is predatory, the EU courts will consider factors such as the company's cost structure, the company's pricing strategy, and the company's market position.