MDPPACPB Regulations

Page 27 of 127
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In determining whether predatory pricing has occurred, the Authority shall 
consider, inter alia: 
 
(a) 
Evidence of prices persistently below cost; 
 
(b) 
Internal documents, communications, or business plans that show 
an intent to eliminate or discipline competitors; 
 
(c) 
Market structure and dominance, indicating the licensee has the 
capacity to distort competition and recoup losses in the long term; 
 
(d) 
The absence of a valid commercial justification for below-cost 
pricing (e.g., promotional campaign with clear scope and duration tied to 
cost-efficiency or inventory turnover); 
 
(e) 
Patterns of price suppression followed by sharp increases once 
competitors exit or reduce scale. 
(5) 
Prohibition Irrespective of Short-Term Consumer Benefit 
Predatory pricing is prohibited under this Regulation even where consumers 
benefit in the short term, as it ultimately undermines competition, reduces 
market choice, discourages investment, and harms long-term consumer 
welfare. 
(6) 
Remedies 
Where predatory pricing is found: 
 
(a) 
The Authority may issue cease and desist orders, impose 
administrative fines, or require price restructuring; 
 
(b) 
Contracts and sales made pursuant to a predatory strategy may 
be declared void or unenforceable; 
 
(c) 
The Authority may refer the matter to the Federal Competition 
and Consumer Protection Commission for joint enforcement or prosecution. 
(7) 
Compliance Obligations 
Dominant or integrated licensees or operators shall: 
 
(a) 
Maintain auditable cost records; 
 
(b) 
Submit pricing rationale documents upon request; 
 
(c) 
Refrain from any pricing structure that cannot be commercially 
justified by operational costs or competitive efficiency. 
 
 
24. Prohibition of Targeted Predatory Pricing and Fighting Brand Schemes 
 
(1) No licensee shall implement temporary, localised below-cost pricing or 
introduce lower-priced “fighting brands” in specific areas with the intent or 
effect of eliminating or disciplining competitors, followed by withdrawal or 
price increases once competition is weakened. 
  (2) 
Targeted Predatory Pricing 
It is prohibited for any dominant or large market participant to: 
 
(a) 
Implement price cuts only in areas where a new entrant or 
independent competitor operates; 
 
(b) 
Sustain prices below cost or marginal cost in those targeted areas 
while maintaining higher prices elsewhere; 
 
(c) 
Deploy “fighting brands” or differentiated discount schemes in 
localized markets with the intent to suppress new competitors;