Our Court of Appeal has provided COG’s Directors and local
business owners with a lesson on predatory pricing and unfair
business practices.
Dear Editor:
Our Court of Appeal has provided COG’s Directors and local business owners with a lesson on predatory pricing and unfair business practices. In the case I called the “Battle of the Fleets,” the owners of the Red and White Fleet sued the owners of the Blue and Gold Fleet on antitrust and unfair business practice theories, including predatory pricing (pricing below cost).
Overturning the trial court’s decision, the appellate court held that under California law, a case of predatory pricing could be stated where only part of the predator’s overall sales were below its cost. The case was returned to trial court for trial to see whether the alleged predatory pricing victim could carry its evidentiary burden proof.
Well, COG’S directors and local business owners should look to the details of the pricing of their respective goods and services. In the “Battle of the Fleets” the pricing in question is for transport fares for passengers. Is COG intentionally pricing its passenger fares at a level which harms competitors in the market place? Is VTA? Our other transit agencies? Or do we tolerate a different standard of unfair business practice when it’s our own government violating our law? If so, why do we? What is the ultimate price we pay for our divided house, socialism and capitalism?
Caveat viator.
Joseph P. Thompson,
Tres Pinos
