Legal Analysis Of Whether Subsidy From The Ride-sharing Company Cause Lower Price Than Cost

In order to improve the market share of apps,these three operators had totally invested 1 billion yuan for subsidizing passengers and taxi drivers in four months.This competitive behavior can be described as "subsidy’s price war",and the result is each subject of market got benefited.Passengers obtained cash back,taxi drivers income had been increased,and the market share of mobile taxi apps had expanded rapidly.This competitive behavior became the new model of e-commerce application development.It is conceivable that under the condition of capital adequacy,there will be more emerging enterprises follow this procedure to expand their market share.However,this competitive behavior is very similar with political behavior of vote-buying model,which behavior bribes the users’ authority of "vote with their feet"through a series of cashback activities,instead of upgrading quality of products to attract customers.How to define this competitive behavior from a legal perspective.Right now,there is no specific research with regards to this issue to give a clear definition,just some comments can be found.In order to avoid negative effect of this"seemingly benefit" competition,it is necessary to analysis this behavior and defined it from legal perspective.The first part of the text for the introduction of this article,introduced in the development of the network car in the process,in order to attract users to use their own network bus software,network bus companies to use more subsidies to give passengers,drivers high subsidies,The fare is generally lower than the taxi price.The question is whether the subsidy has led to a lower selling price than the cost price.The second part of the collected data on the subsidy,analysis of the status of subsidies,the network bus market,the user’s impact.The third part discusses the basic theory of selling below cost,and draws out that there are four main elements of the cost sales:the subject of action,the subjective purpose,the objective behavior,and the harm result.,The fourth part based on the constituent elements proposed in the third part of the analysis of whether the network subsidies are less than the cost of sales.The fifth part is the conclusion of this paper that the explicit subsidy does not constitute"selling at below the cost price",nor does it violate Article 11 of the Anti-Unfair Competition Law.However,the"Anti-Unfair Competition Law" in the regulation of low-cost sales behavior,the law is not clear,so for the "lower than the cost of sales"legal regulation,and give four suggestionsAs the rapid development of electronic commerce industry,the business model constantly changes,and the competitive behavior also varies in new ways.As there is no obvious violation of laws,whether or not the competitive behavior can be described as unfair competition requires deeply researched over the market impact and legal theory.