A Storm is Brewing: How Federal Ambivalence Regarding Below-Cost Pricing Turns a Blind Eye to Monopoly Risk in the Beer Market

Croxall, Daniel

Journal: Loyola of Los Angeles Law Review

Volume: 54

First Page: 733

Year: 2021

Bluebook Citation: 54 LOY. L. A. L. REV. 733 (2021)

Author: Daniel J. Croxall: all 7 publications


Abstract

Large beer manufacturers, known colloquially as “Big Beer,” have been steadily losing market share to small, independent craft breweries. Big Beer wants it market share back, and in some cases will go to great lengths to try to defend its dominance—even anticompetitive conduct. Below-cost pricing is one avenue that presents a risk to independent craft breweries. This Article examines how Big Beer can manipulate the beer market in its favor by engaging in predatory pricing.

Further, this Article proposes a solution that could be implemented on a nation-wide scale to curtail Big Beer’s anticompetitive activities with respect to pricing.

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