The Federal Trade Commission (FTC) has filed a lawsuit against Southern Glazer's Wine and Spirits, accusing the company of violating the Robinson-Patman Ac
"In the single product case, courts have consistently applied the ‘not easy to establish’ two part test for predatory pricing set out by the Supreme Court in its Brooke Group decision. As a result, the courts have generally ruled that above-cost volume discounts, including those that use market share discounts and near exclusive thresholds, are lawful and do not violate the antitrust laws. "
“Evidence of below-cost pricing is not alone sufficient to permit an inference of probable recoupment and injury to competition. The determination requires an estimate of the alleged predation’s cost and a close analysis of both the scheme alleged and the relevant market’s structure and conditions. Although not easy to establish, these prerequisites are essential components of real market injury.”
It wasn’t always that way. It’s still technically illegal, but the laws haven’t been enforced for decades.
Biden decided that needed to change, and hired Lina Kahn to do it.
https://www.law.gmu.edu/pubs/papers/05_26
"In the single product case, courts have consistently applied the ‘not easy to establish’ two part test for predatory pricing set out by the Supreme Court in its Brooke Group decision. As a result, the courts have generally ruled that above-cost volume discounts, including those that use market share discounts and near exclusive thresholds, are lawful and do not violate the antitrust laws. "
https://supreme.justia.com/cases/federal/us/509/209/
“Evidence of below-cost pricing is not alone sufficient to permit an inference of probable recoupment and injury to competition. The determination requires an estimate of the alleged predation’s cost and a close analysis of both the scheme alleged and the relevant market’s structure and conditions. Although not easy to establish, these prerequisites are essential components of real market injury.”