There is no such thing as a "false market", a market is where goods or services are offered for sale - that describes the situation perfectly. It was a market.
Companies often sell things at or below cost, they are called "loss leaders". If every market that had loss leaders was a "false market" then no market would exist.
It's a false market when the consumer has no choice.
Classic example in the paper today regarding the argument (sorry, discussion ) we were having about privatised power companies.
I quote "EDF is locked in discussions with HMG over long term guaranteed prices for the Hinkley Point power station. This would see EDF receiving a "top up" if the market price fell below that level"
Now we've flogged off our power supply to the French and Germans thay demand guaranteed profits before they will supply us. The tax payer loses, the power companies cannot lose.
Privatisation has ensured "prices", either real or a tax payer subsidy always go up.