A multinational commodity mining company engaged in the intercompany sale of commodities and the provision of related support services.
The client operated in a highly regulated environment with heightened scrutiny over pricing policies from both transfer pricing and antitrust perspectives. The client required support in establishing defensible intercompany pricing arrangements for commodity sales and support services between related parties. At the same time, the company faced antitrust and competition law considerations related to the compliance of its pricing policies.
The challenge was to develop pricing outcomes that were robust under transfer pricing principles while also withstanding scrutiny under competition and antitrust frameworks.
CRA was engaged across multiple practices to deliver an integrated and coordinated solution. CRA’s Transfer Pricing team performed benchmarking and economic analyses to support the establishment of arm’s length intercompany pricing for commodity sales and support services. In parallel, CRA’s Competition team conducted an economic assessment of the client’s pricing policies to evaluate compliance with applicable antitrust and competition considerations. The teams worked collaboratively to align assumptions, analytical frameworks, and conclusions, ensuring a consistent economic narrative across both disciplines.
CRA’s coordinated approach resulted in a convergent pricing range that could be implemented consistently across transfer pricing and competition analyses. This provided the client with a robust, defensible pricing framework that addressed regulatory requirements on multiple fronts.
