doc__table__257

| (176) | If the direct purchaser faces higher costs of raw materials, for instance if the suppliers of raw materials increase prices in violation of Article 101 TFEU, this may alter the terms of the trade-off described in paragraph 175 above. An increase in the direct purchaser's costs will reduce the margins earned on the sales at the prevailing price. In profit terms, this makes it less costly to increase the price at the expense of losing some sales. The lost profit due to lower sales when costs have increased is represented by area D in the right section of Box 16 below. As area D is smaller than area B, the direct customer has an incentive to increase its price in response to the cost increase, i.e. to pass on the cost change, at least to some extent.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.