The Competition Authority has recommended that fuel retailers not publicly comment on fuel prices or possible price changes to avoid breaking commercial rules. The agency said it would not restrict companies’ public communications.
The agency sent fuel retailers a recommendation drawing attention to the competition law risks associated with price signals given in public communications.
It wants to prevent situations where companies’ public comments about fuel prices or future price changes could reduce the commercial uncertainty of market participants and influence competition, thereby leading to violations.
“The recommendation does not restrict companies’ public communication, but draws attention to situations where comments may give competitors signals about future price changes or strategy,” said Eugen Elison Kask, head of the Competition Protection Service. “Competition works better when companies shape their pricing policies independently and do not rely on competitors’ hints or expectations.”
In a press release, the authority noted that public comments and announcements by fuel retailers about the fuel market have become more frequent recently.
At the same time, public and market participants’ interest in how fuel prices are formed and in the content of public messages concerning them has increased.
The agency said competition functions effectively above all when companies make their decisions independently and do not have information about their competitors’ future intentions.
Public hints about price changes or market strategies may, however, provide guidance to competitors and reduce their uncertainty regarding future market behaviour, the press release noted.
“Therefore, the Competition Authority calls on companies to refrain from public price messages that may reduce the uncertainty necessary for competition to function,” the statement added.
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