information:classification, structural:expansion
Criticism

Critics of laws against predatory pricing may support their case empirically by arguing that there has been no instance where such a practice has actually led to a monopoly. Conversely, they argue that there is much evidence that predatory pricing has failed miserably. For example, Herbert Dow not only found a cheaper way to produce bromine but also defeated a predatory pricing attempt by the government-supported German cartel Bromkonvention, who objected to his selling in Germany at a lower price. Bromkonvention retaliated by flooding the US market with below-cost bromine, at an even lower price than Dow's. However, Dow simply instructed his agents to buy up at the very low price and then sell it back in Germany at a price still lower than Bromkonvention's. In the end, the cartel could not keep up with selling below cost and had to surrender in the price war. This was used as evidence that the free market is a better way to stop predatory pricing than regulations such as anti-trust laws.