This publication sets out the Commission's findings of its investigation into the market for classified directory advertising services (CDAS) in the UK. This type of advertising is often referred to as directional advertising and includes media such as classified directories, classified adverts in newspapers, online directories and certain forms of internet advertising. The Commission's inquiry focuses on advertising in printed classified directories, and the three largest classified directory publishers are Yell, Thomson and BT. Issues discussed include: the Yell undertakings in relation to prices and directory areas, market definition and concentration, pricing and revenues, barriers to entry and expansion, buyer power, the impact on competition of 'second tiering' or the introduction of additional directory publications in a given geographic area. The market is highly concentrated with Yell alone having a market share of 75 per cent. This is found to be detrimental to customers as prices are higher than would be the case in a well functioning market. The remedies include a price control upon Yell and the limitation of Yell's publication of 'second tier' directories.
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