Unilateral public price announcements – cartel substitute?

In many markets firms unilaterally disclose their future pricing plans through public statements, press releases, websites or through generic or targeted letters to customers. Such announcements have attracted considerable regulatory scrutiny in Europe. This article considers the potential anti-competitive and pro-competitive effects of public announcements, the conditions under which such announcements may facilitate coordination and anti-competitive effects, and the facts that firms and their advisors should consider when providing compliance advice regarding price announcements.