I know retail stores in France cannot legally sell
anything at a loss, except during government-decided 'sales' periods (twice a year, usually in January then June) which are mostly aimed at emptying stocks for the new 'season' (as if that mattered in the 21st century when most stores are a on a bi-monthly product cycle, but hey, that's the inertia of law/gov).
Not sure about businesses in general but I seem to recall it's a general law for commerce.
The problem is that retail is thus basically unable to compete on price beyond a certain (very mild) degree, notably forbidden to say "I'll sell item X at a loss to attract customers, and then make up for it on other items they buy". It's just illegal to do it in France.
A little bit too reminescent of a planned (communist) economy if you ask me, because it applies to each and every item taken individually, not the store overall or over a certain period of time. Needless to say this doesn't help thwart the collapse of retail versus online shops, especially in the way of services — and consider that foreign online businesses don't even have to follow such regulation, obviously, so...
It's a very, very grey area to regulate, and government being just awful at understanding how business works makes it ill-suited (often misguided) to regulate such things. I think branch negociations (within a given sector) is a much better approach: let actors (businesses) decide how they will compete, and only regulate if there's anti-consumer (cartel) behavior, not prior to any wrongdoing! — it reeks of a view that 'capitalism is bad' yadi-yada (typical French view) and hurts consumers' purchasing power in the end.
