On the other hand there are countless examples of similar strong-arming tactics that never see daylight. For example, negotiations with supermarket chains to get a spot on the shelf (and which spot), what the chain's cut will be, or which tools a car repair shop is allowed to use to be "licensed" to work on some brand (hint: it's the brand's own overpriced line of tools).

"Lets provide the better product/service at a lower price" is, by far, not the most common business tactic.