UK directories firm facing new price curbs

UK Yellow Pages owner Yell was today facing the possibility of new price controls after a watchdog said competition in the directories market was not working.

The British Competition Commission (CC) said it planned to consult on possible remedies, including discussions on the level and scope of future price controls.

Yellow Pages is already the subject of a price cap on advertising rates, but the CC said the business continued to hold a powerful position in the market.

Yell has argued during the year-long inquiry that the rapid growth of the internet and re-entry of BT into the market meant there was no need for continued regulatory involvement.

However, inquiry chairman Diana Guy said: “Yell continues to hold a powerful position in this market and we have found that competition is not working effectively.

“Prices are capped at the moment and we think that, without this price cap, advertisers would pay more than in a well-functioning market.”