Since when is selling an item at a discount cheating?
I can sort of understand this from some peoples point of view, and also, in the UK anyway there was some law about real life companies using cross subsidisation to be able to lower prices and damage the competition.
I'm unsure about the law in the USA, perhaps someone can explain it to me.
Let me put forward a scenario:
You are a small business and you employ say 10 people making motorcycles for $10,000 each, and have a great product people love.
I'm a large company that makes cars, boats and private aircraft and I want to get into the bike business.
I see you bike market and feel I'd like to get into the business, make bikes and become the leading bike seller.
I look at what you make, and match your bikes for quality, but I don't like you around as I want your customers.
So, I price my bikes at $2000 each. It actually costs me £4000 to make them, but hey, I can soak up the loss as I'm making so much profit from the other sides of my large company.
You struggle and struggle and lose more and more customers as they see they can buy something just as good at 1/5th the price.
You end up having to let your workforce go, and close down your business as you cannot afford to compete with me, as the bikes were your only income source.
If that allowed in the US ?
Whilst I'm aware this is not exactly totally relevant to this EA thing, one could argue a little that a small developer with say 3 people on the team need sales to make their income to continue to develop quality apps, whilst a large software company could, if it wished take a loss on iPad apps, just to ge their brand big time on the system.
I'm sure they are not doing that, but they could afford to. EA are not going bust if they don't make a fortune on iPad titles.