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ARTICLE · 10 MARCH 2025

Predatory Pricing In Nigerian Competition Law

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Competition laws are designed to enhance market competitiveness, ultimately reducing consumer prices and improving consumer welfare. On these terms, predatory pricing may appear as a paradox...

NigeriaAntitrust/Competition Law
Ayomide Abiodun
Ayomide Abiodun
Adeyinka Adeoye
Adeyinka Adeoye
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Introduction

Competition laws are designed to enhance market competitiveness, ultimately reducing consumer prices and improving consumer welfare. On these terms, predatory pricing may appear as a paradox, because a predatory pricing claim asserts that a low price is anticompetitive. However, this so-called paradox is not profound. The traditional theory of predatory pricing is quite straightforward.

The three critical elements in Nigerian law are (a) pricing theory that fails at least one of the three tests, (b) dominance in the market and (c) consumer harm. These are rational elements that are welcome to separate illegal predatory pricing from pro-consumer competitive pricing, as the Air Peace saga will show.

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