Competition Authority Welcomes Publication of Annual Report

The Competition Authority today (Wednesday 2nd August 2000) welcomed the publication by the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Harney, T.D., of the Authority’s Annual Report for 1999.

Commenting on the Authority’s activities for 1999, the Chairman of the Authority, Dr. John Fingleton, said that the Authority had carried out its role effectively. In particular, he pointed out the Authority had acted vigorously in the areas of cartel enforcement and anti-monopoly action, and said that it has continued to play an important role in advocating greater competition in the economy generally.

"Fixing prices and dividing markets are clearly illegal activities that have hugely negative repercussions on consumers, on the competitive process itself and on the economy generally. Prosecuting breaches of the law by cartels is a core plank of the Competition Authority’s duty to foster and support a climate of healthy competitive rivalry in the Irish economy. We have a number of cases awaiting trial by the courts and will be pressing for severe penalties against any companies or individuals that are found guilty of anti-competitive behaviour".

In keeping with its stated policy that it regards cartels that fix prices and divide markets as the most serious breaches of competition law, the Authority increased its enforcement activities in this area in 1999. It conducted in excess of 30 searches of businesses suspected of engaging in these practices. Five of these investigations resulted in the Authority bringing legal proceedings and significantly, in 2 cases, it referred files to the Director of Public Prosecutions to consider instituting criminal proceedings.

The Authority’s annual report gives details of its activities in a number of other areas during 1999. During the year, the Authority dealt with 105 notified agreements, so that the total number of notified agreements awaiting decision stood at just 41 by the end of the year, the lowest figure since the Authority was established in 1991.

It considered one merger referral from the Tánaiste involving two separate but related takeovers. The Competition Authority continued to advocate the removal of state-imposed restrictions on new entry in markets such as taxis, public houses and the removal of the Groceries Order which restricts price competition in that sector. The Authority also organised a conference in conjunction with the UCD Faculty of Law on the European Commission’s White Paper proposals on the decentralisation of competition policy and Members and staff of the Authority addressed a large number of conferences and meetings at home and abroad.

Dr. Fingleton described the Authority’s performance in 1999 as impressive. "The Competition Authority produced an remarkable output during a period 1999. It continued to be a strong and independent voice for competition in the Irish economy, taking on both individual companies and vested interests that would seek to restrict competition. Ultimately this benefits consumers in terms of lower prices, greater choice and quality, and the development of new product and services".

Concluding his remarks on the publication of the Authority’s annual report, Dr. Fingleton paid tribute to the Members and staff of the Authority for their dedication and professionalism to their duties and particularly singled out the outstanding contribution of the previous Director of Competition Enforcement, Mr. Patrick Massey, in developing the enforcement side of the Authority’s work.

For further information, please contact Ciaran Quigley 087 237 1472.