May these words of Torah serve as a merit le’iluy nishmat Menachem Mendel ben Harav Yoel David Balk, a”h.
This week we learned Menachot 77. These are some highlights.
Should a Jewish court in a free society seek to stop predatory competition?
Our Gemara is a source for poskim who feel that Jewish courts need to try to block predatory competition. Shmuel teaches in our Gemara that one who does business with basic food staples like wine, oil, and fine flour is not allowed to profit more than a sixth. He cannot double his costs and sell the item for so much money that he will have a 100 percent profit, for our sages were intent to keep the prices of food staples affordable. Our Gemara refers to oil, wine and flour. These are considered staples, but it certainly also applies to meat and bread. Our Gemara was employed by Noam Eliezer (Siman 7) to mandate involvement of a court in a case of unfair competition.
There was a town in which Reuven was the main supplier of bagels to all the stores. Shimon was a wealthy man and decided he wanted to get into the bagel business. Shimon started selling bagels for an extremely low price. No one could sell bagels at that price. In fact, Shimon was losing a lot of money on his sales. Shimon wanted to eliminate his competitors, and then he intended to raise the prices dramatically. Reuven approached a rabbi and told him the story. The rabbi told Reuven that Shimon was wrong in his behaviors, but since we live in free societies where all are allowed to engage in business in whatever way they wish, according to the laws of the land, the Jewish religious authorities are not to get involved and say anything to Reuven. Noam Eliezer writes that the rabbi who told Reuven that poskim could not get involved was wrong. If Shimon is a man who would listen to the instructions of a beit din on religious matters, then beit din would have a responsibility to tell Shimon that his behaviors are wrong. Our Gemara is a lesson about the responsibility of beit din. Beit din has to try to keep life affordable for Jews. If they can set prices to make sure staples are cheap, they must do so; that’s why Shmuel enacted that one may only get a profit of a sixth from a food staple. If Shimon would be allowed to bankrupt his competitors and then raise the prices dramatically, the cost of a food staple would become unaffordable. The Gemara in Bava Batra discusses a store owner who gives out candies to kids to get them to frequent his store. The Gemara only allows it because his competitor can also give out candies. However, in our case, Reuven cannot afford to give away bagels the way Shimon can. The beit din therefore should tell Shimon that what he is doing is wrong and it should stop.
She’arim Metzuyanim Behalachah (Siman 62:5) deals with the same issue. He rules that if a competitor cannot match the low price that one wishes to charge, he is not allowed to charge that low price, for it would be unfair, predatory competition, and Halacha wishes to keep markets and competition vibrant. The court has a responsibility to keep competition going in order to maintain the option of affordable living. (Mesivta)
By Rabbi Zev Reichman
Rabbi Zev Reichman teaches Daf Yomi in his shul, East Hill Synagogue.
