[statictype]

Predatory pricing exists when you try to take over a market by selling something so cheap, other competitors are driven out – or prevented from entering, since they couldn't recoup the costs involved in developing a product.

Fair point, and that got me thinking:

Would you say the same about the iPad?

Would you say that Apple is stifling competition in the tablet space by making a tablet that's really good and reasonably priced? That's also technically speaking, stifling competition right?

Yet, I don't think anyone would argue that Apple is doing anything unfair.

So what's the difference?

[danilocampos]

I think you'd have to look at the margins and intent involved.

If Apple was foregoing any margin, and perhaps even operating in the red in attempt to prevent competition, that would get a little touchy. For example, if tomorrow Apple slashed the iPad's price to $150 just to fuck over the rest of the market, that'd be weird.

But the thing is, Apple isn't invoking the DOJ or crying "anticompetitive." Google is. So they need to have competitively clean hands if they want that to mean something. I'm not sure they can claim that.