Pricing is a critical issue for firms operating in Europe. Hermann Diller and Imaan Bukhari perform a structural analysis of the pricing conditions in four industries in six EC countries and discuss the implications for pan-European pricing. The analysis reveals that existing structural differences between countries are too large to be ignored. However, the internationalization of the retail industry across Europe is putting increasing pressure on consumer goods firms to align their prices. Finally, the authors present two strategic approaches to deal with this dilemma.