What Can You Tell Your Competitors?

Every so often we get this question from clients. Some are quite surprised by the answer: The exchange of certain types of information between competing companies is in itself regarded as serious competition crime.

The reason that exchange of information can be detrimental for competition is pretty obvious. By disclosing sensitive competitive information to competing companies the strategic uncertainty in the market is reduced. The company that receives information about the competitor's future market behaviour can relax, sleep well at night and will not have to compete as hard as if uncertainty about the rival's next move still had ruled. The exchange of strategic information consequently reduces the incentives to compete.