Wednesday, December 23, 2009

Product bundle pricing and unfair competition

In product bundle pricing, a business combines two or more products and then sells it at a lower price. This strategy may allow the company to dispose those products which are not selling well. However, sometimes this same product bundle pricing may be seen by the government competition agencies as being unfair competition for the other competitors. For example, recently the European Commission decided to go after Microsoft for bundling its web browser with its operating system. In short, product bundle pricing may be sometimes considered illegal by the government. Check out this article about technology firms and anti-trust and do give feedback.

http://www.economist.com/businessfinance/displayStory.cfm?story_id=15127168

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