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Hard evidence is what the Matsu*censored*a Vs Zenith was lacking.Zenith could not uncover enough evidence to prove that the Japanese firms had a conspiracy and were charging a predatory price.Zenith could not uncover the MC of the Japanese firms to find out if they were charging below MC.There were restrictions put up on imports by the Japanese government called check prices.This was designed to keep make sure the companies were not charging a predatory price.This does not mean the firms were ever charging below the check price.By offering a purchase discount the firms got around this issue.The Japanese government set up a five-company rule this meant that a Japanese firm could only sell to five other stores.
Why would any company charge a predatory price in one market where they will lose money when they are making a large profit in another?The Japanese firms were collusively setting a price in Japan and making a ton of money.With all of this money they were making they could have used it as an investment to predatory price in the US.The Japanese firms will lose lots of money, but if they got rid of the American companies they could raise the price here to.Overall I have learned that this case is very complex case that lacked the hard evidence to convict the Japanese firms of conspiracy and predatory pricing.
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