I just went through a Compliance eLearning which had a section covering anti-trust laws. My understanding of predatory pricing from that is inline with this description I found on wikipedia
During the period of predatory prices, the predator's profit is negative, or the price is lower than the cost.
At the end of the eLearning, a quiz asked:
If a competitor tries to enter the same market one is in, what would be lawful behavior and what might lead to prosecution in regards to anti-trust laws?
The correct answer, of multiple possible answers, suggested that
One could try to make their products attractive by giving the best reasonable discount you could offer.
While another possible answer was
Giving a discount on the Software suite that will temporarily sell the software below cost price. But this can be changed again as soon the competitor is driven off the market.
which obviously would be a breach of anti-trust laws.
But this left me confused, if I ever was working in sales or a related department....
What is actually considered the cost of a software service in this regard? And what is considered a reasonable discount in that regard, and what is unreasonable?