Analysis of Predatory Pricing and Fixed Pricing in Business Dynamics in Indonesia
DOI:
https://doi.org/10.47747/fmiic.v1i1.2209Abstract
Predatory pricing is a pricing strategy in which a company lowers the price of its products to a level that may be detrimental to the company itself, with the aim of driving competitors out of the market. Fixed pricing reflects a company's commitment to keep the price of its products at a fixed level or within a certain range for a specified period of time. As competition and demand change, fixed pricing provides stability and consistency in product prices. This study aims (1) to find out the practice of predatory pricing in KPPU Decision Number 03/KPPU-L/2020, and to analyze the concept of approach used by the Business Competition Supervisory Commission Panel in its consideration of deciding fixed pricing cases in KPPU Decision Number 03/KPPU-I/2003. The method used in this research is qualitative. The data sources used in this research are as follows: a) Primary Legal Texts: Legal texts that are authoritative in nature. Judges' decisions, legislative requirements, and official court documents or minutes are some examples of fundamental materials. Based on the data collection and analysis process, this study can be concluded as follows: the importance of understanding competition practices and the use of appropriate approaches in case analysis is emphasized. Predatory pricing practices can damage competition if not recognized and prevented. Similarly, understanding the notion of approaches such as "per se illegal" and "rule of reason" in case analysis can influence the way the Competition Supervisory Commission makes decisions. This is important to maintain fair and healthy competition in the market.
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