Press ReleaseCompetition Authority Wins Landmark ‘Price Fixing’ Case.

The Competition Authority today (Wednesday 4th October 2000) welcomed the conviction of Estuary Fuel Limited following its guilty plea in Limerick District Court to two charges of breaching section 4(1) of the Competition Act. This is the first time that a company has been prosecuted for price fixing under the Competition (Amendment) Act, 1996. Judge Tom O’Donnell imposed a fine of £500.00 in respect of each of the two charges. The Competition Authority prosecuted Estuary Fuel Limited on charges of entering into and implementing an agreement to fix the price at which motor fuels were sold by a filling station in Tralee.

Reacting to the case Authority Member Pat Massey said ‘The Authority has consistently stated that it would invoke the power to bring criminal prosecutions in price fixing cases. Price fixing represents a serious breach of competition law and effectively denies the ordinary person in the street the right to shop around and get the best possible deal.’

In the early months of last year the filling station concerned began selling unbranded motor fuels at a significant discount to the prices charged by other filling stations in Tralee resulting in lower prices for motor fuels in the town.

Evidence was presented by the Authority that Estuary Fuel Limited had subsequently entered into and implemented a written agreement in June of last year to supply motor fuels to that filling station subject to the station not selling diesel or unleaded petrol for less than 51.9p and 55.9p. The Authority argued that such an agreement had the object of restricting price competition in respect of motor fuels in the town of Tralee.

Commenting further on the case Mr. Massey added ‘The price cutting in Tralee in the early part of 1999 clearly illustrates how competition can save people money. This unlawful agreement, by setting a minimum price at which the retailer could sell motor fuels, effectively denied motorists the opportunity to save money every time they filled up their tank. The Authority will not hesitate to bring criminal prosecutions where it has evidence of price fixing. Our advice to businesses in this regard is simple:

• Don’t agree prices with your competitors;
• Don’t discuss prices with your competitors; and
• Don’t exchange information about your prices with your competitors.’