Competition law price signalling

  • What is signaling pricing?

    Price signaling is an indicator that the supply and demand for a good or service in an industry need to change because of an increase or decrease in the price of the good or service..

Price signalling is not defined in legislation or case law, and a clear legal test as to when it constitutes an infringement of competition or antitrust rules 
The notion “price signalling” is generally understood as the unilateral, public exchange of information concerning the future market behaviour of an undertaking that depending on the facts at hand may lead to illegal coordination between competitors.

Can price announcements lead to illegal price coordination?

The case also highlights the Commission’s position that merely making price announcements can be construed as an invitation to collude - or “price signalling” – which can lead to illegal price coordination even without direct contact between competitors.

What happens if a competitor is invited to coordinate prices?

Invitations to coordinate prices also can raise concerns, as when one competitor announces publicly that it is willing to end a price war or raise prices if its rival is willing to do the same.
Not all price similarities, or price changes that occur at the same time, are the result of agreements among competitors.


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