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nemomarxyesterday at 11:52 PM3 repliesview on HN

In physical markets we call this kinda thing dumping and it's often regulated. Maybe offering SaaS or compute at below profitable rates should be investigatable too, to avoid killing competitors too easily?


Replies

Aurornistoday at 2:53 AM

Dumping is typically used in the context of international trade.

There are some predatory pricing laws, but they're much more narrow than most people believe. There is no law requiring things to be sold for more than it costs to produce.

I think it's funny that these topics make people angry enough to demand that we make laws to force companies to raise prices. We'll stick it to these companies by forcing them to charge us more! That will show them!

Such laws would be very bad for startups and newcomers because they'd be forced to price their new product higher than established competitors who have economies of scale. It would be a nice handout to the big companies.

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deauxtoday at 5:07 AM

The whole Silicon Valley VC industry and the majority of the net worth of SWEs on HN is based on dumping. "Burning VC cash" is transparently dumping, and it's squarely what the US big tech dominance is founded on. Amazon, Uber, Youtube, now LLMs. The huge majority of "success stories" of the last 15 years are based on dumping their product far below cost price, running at a loss for years until they dominate the market, and then jacking up prices/enshittifying/selling user data.

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parineumyesterday at 11:59 PM

Yeah, that's where the realization led me too.

These companies probably need to be forced to at least try to price their products at a level that would be sustainable long term.

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