Price differences for homogeneous products are often a source of concern for competition authorities. Typically, competition authorities will rely on price differences to define narrow markets. Large differences on the prices charged by a company with a significant market share will also be considered as indicative of discriminatory or exclusionary conduct (fidelity rebates).

With regard to merger filings, price differences and international price comparisons feature prominently in Form CO. The kind of information Form CO requires with respect to prices can in some cases be rather misleading. (more…)