When will Cyprus learn that cheaper prices means bigger sales

Petros Markou, President of the Cyprus Consumers Association, makes a good point on naming and shaming companies that appear to rig the market.

European Union competition law applies in Cyprus just as it does in any other country of the EU. Fixing prices at any point in the supply chain is against Cypriot and EU law. What is more, some large companies when faced with competition will deliberately lower prices for a short period of time to make a loss, knowing that this will drive their competitor out of the market. They then raise their prices as soon as the competitor has been driven off. This ‘abuse of a dominant market position’ is also against EU and Cypriot law. These practices should result in substantial fines and penalties for the companies and individuals involved. Yet, consumer prices in Cyprus have remained amongst the highest in the EU.

Part of the problem is lack of consumer and business awareness. The Commission for the Protection of Competition has made progress. But in addition to more rigourous policing of the market, the Commission needs to empower consumers by making them aware of the law and their rights. Its website needs to increase awareness and provide consumer information. Moreover, business needs to be educated that low prices mean greater profits not less. The supermarkets in the UK which have the greatest profits, such as ASDA and Tesco, are the ones that sell products at the lowest prices. Cheap prices mean a greater sales volume. Low prices also mean that the consumer is likely to buy a greater variety of different products when they visit the supermarket or the shop, further increasing profits. American businesses have understood this for many years. The British learnt this more recently. I hope that Cypriot business will soon catch up! 

Dinos Kyrou, London

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.