Pricing strategies

Building a competitive advantage often comes down to building a new price list, but the situation is completely different when you are a strong market player. Having a strong market position, you may be exposed to the accusation of abuse of a dominant position (or maybe even a monopoly position?). This does not mean that you can do nothing! However, you need to be careful what actions you take and what market effects they will generate.

What can you do?

The first step is to determine what business goals underlie the changes, as they will be a reference point for financial modeling. Then you need to make sure that you do not have a dominant position and that the relevant restrictions imposed by law do not apply to you. Next, you need to determine what is the range of incompatibility of your strategy with antitrust regulations.

What is the threat?

The use of commercial practices that constitute a violation of competition may lead to a penalty up to 10% of the turnover of the company. An additional element is the risk of liability for damages to anyone who has suffered damage due to your violation of antitrust law.

What COMPER can do for you:

• Determine the market position of the undertaking,
• Indicate the ranges of non-compliance with antitrust regulations,
• Propose the mitigation of antimonopoly risks,
• Carry out an analysis of mitigating antitrust risks (called balancing test),
• Prepare the modelling of the trade (price) strategy in the context of antitrust regulations.