Yell Yellow Pages which is also known as Hibu see a ray of hope after OFT recommended Competition Commission to remove restrictions on them
Herndon, VA -- (SBWIRE) -- 09/11/2012 -- The Office of Fair Trade recommended to the Competition Commission that the restrictions that were put on Yell Group’s Yellow pages business, which include caps on the advertising rates, are no longer appropriate and advised that they should be removed now.
Yell, which is now known as Hibu, is suffering from a great financial crisis, due to the printing business having gone down, as people are now more used to the internet for finding local listings.
In 2007, the Commission put restrictions on Hibu, due to high rates on classified ads, which was then another well functioning company in the directory business. Along with that, Yell was also told to cap their prices for the Yellow Pages advertisement provided that all the costs and account details would be provided to the Office of Fair Trade.
After the release of this news, share prices of Yell observed an improvement of 10% in the London Stock Exchange.
Panmure Gordon and Co analyst Alex Degroote said, “The market has changed since 2007 and some of the regulations are not appropriate anymore. Hibu's had a tough time and this is a small bit of good news,” according to The Telegraph.
Nisha Arora, who is a director in the OFT services, infrastructure and public markets groups, said “since 2007, the business trends have changed a lot and the overall market have undergone many slumps and hypes. As a result of the changes, the restrictions that have been placed on Hibu should be removed and the Competition Commission should release Hibu from all the undertakings of 2007.”
These days Hibu is trying to get their position back into the competition with an aggressive digital media campaign, but facing a lot of problems due to the debt they are in, which is about $2.2 billion.
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