Is it lawful for my competitor to sell goods below cost price?

The fact that an activity is being run at a loss is not in itself an infringement of the Act: the key question is whether there is any anti-competitive effect. In the case of dominant undertakings, Section 20 of the Act may be breached if, for example, the undertaking embarks on a pricing strategy whereby it deliberately incurs losses in order to eliminate a competitor so as to be able to charge excessive prices in the future. This is also known as predatory pricing. Note that, for Section 20 of the Act to be breached, the supplier must be shown to hold a dominant market position.