Proposed modifications to Yell price control

Competition Commission notice (36 pages, PDF) of proposed remedies arising from its investigation under the Enterprise Act 2002 of Yell's classified directory advertising business, and its findings that there were market features which prevented, restricted or distorted competition.

The only remedy proposed is a continuation of the price control on Yell's advertising rates. The Commission proposes to replace the current RPI-6 control on a basket of prices with a RPI+0 control on individual product prices (from 2008), which it considers to lead to prices that "would be broadly consistent with the outcome of a well-functioning market". The evidence related to productivity improvements and profitability is largely redacted out of the published document.

Responses by Friday 29 September 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission, Media, Price controls.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon