Chillin'Competition

Relaxing whilst doing Competition Law is not an Oxymoron

Archive for May 17th, 2010

Predatory Pricing?

leave a comment »

In a move that many analysts view as an act of war, Microsoft will release a free version of its upcoming Office 2010 suite… This looks like good news for consumers.

Office has long been the “cash cow” of the Redmond giant. With a price now equal to 0, and possible foregone profits in the short run, the new Office suite may raise questions in terms of predatory pricing. This being said, Microsoft’s offer could also constitute a good illustration of so-called “penetration-pricing”, or of a “meeting competition” – read Google Docs – counter-strategy.

The bottom-line: Advising Microsoft on a daily basis must be really exhausting.

(Image possibly subject to copyright: source here)

Written by Nicolas Petit

17 May 2010 at 9:30 am