Ok, so you have some spare capital from being successful in one market. You want to move into a new market, and that spare capital is your ticket in. There's a difference between building a sustainable, independent business with that capital, and strangling competitors in the new market by moving in and charging well below your cost until those competitors are dead.
The former benefits consumers by giving them more choice. The latter gives consumers lower prices in the short term, but then hurts them overall when the competitors are forced out and prices inevitably rise again, this time without any competitive pressure to keep costs low, margins reasonable, and product/service quality high.
And regardless of whether or not the latter is common, or has always been common, I maintain that it is a huge negative aspect of capitalism that destroys wealth, creates inefficiency, and hurts consumers. Regulation that targets that practice would be welcome.
The former benefits consumers by giving them more choice. The latter gives consumers lower prices in the short term, but then hurts them overall when the competitors are forced out and prices inevitably rise again, this time without any competitive pressure to keep costs low, margins reasonable, and product/service quality high.
And regardless of whether or not the latter is common, or has always been common, I maintain that it is a huge negative aspect of capitalism that destroys wealth, creates inefficiency, and hurts consumers. Regulation that targets that practice would be welcome.