Matsushita (now Panasonic) allegedly priced its Panasonic TV sets below cost in the United States, subsidizing sales with its high margins in the Japanese market and driving the U.S. manufacture out of business; this is an example of predatory pricing.

Question

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Matsushita engaged in predatory pricing by pricing its TV sets below cost in the U.S. market, using profits from its high-margin sales in Japan to subsidize its losses in the U.S. This practice drove the U.S. manufacturer out of business and is considered anticompetitive behavior.

Matsushita (Now Panasonic) Allegedly Priced Its Panasonic TV Sets Below