Establishing a Defendable Regional Price System: Mitigating Risks, Maximizing Opportunities

Due to recent economic developments, both small and large multinationals are increasingly confronted with unexplainable regional price differences in Europe. These, often historically grown, price differences do not only pose a significant financial, but also a legal risk. Pro-actively managing these regional prices should therefore be top priority for every firm.

Currently, Europe is emerging from a period of high inflation which seems to have peaked in October 2022. While inflation for the EU is often presented as one single number for the entire region, the reality is 2022 inflation rates differed greatly across member nations. While Luxembourg saw 6% inflation last year, Latvia experienced 21%. In addition, each local government would have responded to their inflation rate differently, which introduced even more variety into the impact of inflation. This variety has been instrumental in exacerbating the price differences between different countries…