Q: My competitor is selling at below cost - is that an antitrust violation?
A: It depends on the facts, but based on what you're saying I see no inherent violation. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
A: The predominant antitrust rule is that below-cost sales must be (1) by a firm with monopoly power, (2) less than marginal or incremental cost, (3) not promotional, and (4) likely to be "recouped" in the future with price increases. Thus, in most markets, where there is no monopoly firm, below-cost pricing is not an antitrust violation. Consider whether you are selling goods (versus services) that may be covered by the price discrimination provisions of the Robinson-Patman Act, 15 U.S.C. § 13, see https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman.
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