One of the reasons it is against the anti-trust laws to do this is because it places large businesses like Wal-mart and Microsoft at an unfair advantage because they have enough capital to get through lean times caused by below cost pricing long enough to drive the small business competitors out of business.

Many states have laws against selling gasoline below a legal limit that is set by the government for that purpose.

Several years ago when the price of gas was on the rise companies began realizing that if they offered gas at a reduced rate it would lure consumers into their business and allow them to purchase other goods.

One example was suit filed against Kroger in which the store was accused of violating antitrust laws when it priced its gas below cost.

The store argued that it was not doing so to drive other gas stations out...
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