California Appeals Court Distinguishes Federal Law in Upholding Predatory Pricing Verdict

In a predatory pricing case between rival newspapers, a California state appellate court affirmed most of the verdict favoring the plaintiff.  It rejected the defendant’s argument that the plaintiff had failed to show that the defendant could recoup its losses.  The court held that although federal antitrust law requires a recoupment standard, California state law does not.  Rather, it focuses on the intent of the defendant, distinguishing between price cuts undertaken for legitimate business reasons and those that are predatory.

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