The following is not meant to be legal advice.
In Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co., Inc., the US Supreme Court discussed in its opinion, the economic similarity between predatory pricing and predatory bidding. In predatory pricing, a company reduces its prices below cost to drive a competitor out of business and obtain monopoly profits. In predatory bidding, a company increases the prices of an input to drive competitors out of business and obtain monopoly profits. The Supreme Court concluded that predatory pricing and predatory bidding should be evaluated under the same standards.
In Weyerhaeuser Co. v. Ross-Simmons Hardwood Lumber Co., Inc., Ross-Simmons alleged that Weyerhaeuser used its dominant position in the buying market to drive up prices to levels that reduced or eliminated competitors' profit margins. The two claims at issue alleged that Weyerhaeuser: (1) paid a higher price for sawlogs than necessary and (2) bought more sawlogs than necessary.
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