MDPPACPB Regulations

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(d) 
Use internal budgets, temporary promotional campaigns, or 
conditional volume discounts with the intent to displace a specific competitor, 
rather than to reflect actual cost reductions or excess capacity. 
(3) 
Assessment Criteria 
The Authority shall assess the existence of predatory intent or exclusionary 
effect based on: 
 
(a) 
The duration, magnitude, and geographic scope of the price 
reduction; 
 
(b) 
Whether the pricing was below an appropriate cost benchmark, 
including average variable cost or incremental cost; 
 
(c) 
Whether the conduct was limited to areas where competitors 
recently entered or operate; 
 
(d) 
The presence of internal communications, business plans, or sales 
strategies evidencing a desire to drive out competitors or deter entry; 
 
(e) 
The absence of legitimate commercial justification such as: 
Economies of scale; Inventory liquidation; and Oversupply in the market. 
 
(4) 
Indicators of Fighting Brand Scheme 
Conduct shall be deemed anti-competitive where: 
 
(a) 
The licensee introduces a lower-priced brand or product variant 
only in regions where a new entrant is active; 
 
(b) 
Withdraws or raises the price of the same product once the 
competitor has exited; 
 
(c) 
The product or pricing was never made available nationally or 
without competitive pressure. 
(5) 
Remedies  
Where targeted predatory pricing or fighting brand schemes are established, 
the Authority may: 
 
(a) 
Order immediate cessation of the pricing strategy; 
 
(b) 
Require the licensee to restore price levels to cost-reflective and 
non-discriminatory benchmarks; 
 
(c) 
Impose penalties and sanctions under Part XVII of these 
Regulations; 
 
(d) 
Mandate separation of marketing operations or internal controls 
to prevent recurrence; 
 
(e) 
Refer the matter to the Federal Competition and Consumer 
Protection Commission for coordinated enforcement. 
(6) 
Transparency and Oversight 
The Authority may require any licensee under investigation for suspected 
predatory pricing to: 
 
(a) 
Provide transaction-level sales data, cost and pricing justifications; 
 
(b) 
Disclose regional pricing policies and discount programmes; 
 
(c) 
Submit internal documentation used in competitive response 
planning.