1. For the purposes of Clause (1) of Article (8) of the Decree by Law, the controls governing the prohibition of offering or applying predatory selling prices to consumers shall be as follows: a. Prices falling below the average variable cost or marginal cost shall be deemed predatory, unless the Undertaking is able to demonstrate that such pricing is justified by legitimate economic reasons unrelated to eliminating, restricting, or preventing competition. b. Prices exceeding the average variable cost or marginal cost, but remaining below the average total cost, shall be deemed predatory where clear evidence exists of an anti-competitive plan or intent aimed at eliminating a competitor, restricting its activities, or preventing its entry into the market. 2. The Ministry or the Concerned Authority, as the case may be, shall assess and prohibit predatory pricing after considering the controls referred to in Clause (1) of this Article and the extent of their impact on the market and the freedom of competition, on a case-by-case basis and in accordance with the following discretionary criteria: a. Assessing whether the Undertaking engaging predatory pricing holds a Dominant Position in the Relevant Market, given that predatory pricing may constitute an abuse of a Dominant Position. b. Comparing the prices offered by the Undertaking with the prices of similar or substitute products or services in the Relevant Market. c. Comparing the prices offered by the Undertaking with the costs of producing, processing, marketing, or distributing products, or providing services, in the Relevant Market. d. Verifying whether the prices offered, together with other objective factors, indicate that their purpose or effect is any of the following: 1. Excluding existing or potential competition in the Relevant Market, or in a substantial part thereof. 2. Preventing the entry or expansion of competitors. 3. Disciplining existing competitors. e. Considering the extent to which the Undertaking is capable of increasing its selling prices after a specified period following the exclusion, disciplining, or deterrence of its competitors, provided that the Ministry or the Concerned Authority, as the case may be, shall determine the appropriate period in accordance with the nature of the Relevant Market. f. When assessing predatory prices, the Ministry or the Concerned Authority, as the case may be, shall take into account the potential future impact on consumers, including the risk of monopolization and the possibility of subsequently increasing prices in a manner that reduces the choices available to consumers or imposes unfair prices upon them. g. Assessing the duration of the application of predatory pricing, the extent to which such pricing is applied to all products or services, specific customers, or particular geographical areas, and the causal link between such pricing and the achievement of any of the outcomes provided for in this Article. h. Considering any objective and legitimate commercial justifications submitted by the Undertaking for the predatory pricing, including: 1. Promotional or introductory offers for new products or services. 2. Seasonal offers. 3. Clearance of obsolete or perishable inventory. 4. Matching a competitor's price (within the framework of legitimate competition). 5. Achieving genuine cost efficiencies by the Undertaking.
Interpretation and application must be checked against the official text and current version.