Competition Authority rules on fewer mergers due to economic downturn

THE Competition Authority made rulings on 27 mergers last year, 11 less than in 2008, according to the organisation’s latest annual report.

The number of mergers notified to the authority has fallen by 45 in the last two years, reflecting the economic downturn.

Of last year’s merger total, one full investigation was undertaken by the authority – that of the Metro/Herald free newspaper alliance, which was cleared with proposals attached. Meanwhile, the authority’s decision to block Kerry Group’s takeover of Breeo Foods was quashed by the High Court. This led to an appeal by the authority and the matter is now before the Supreme Court.

Last year also saw 10 additional criminal convictions secured by the authority, relating to prosecutions of price cartel activity in the case of the Citroen Dealers Association.

The Licensed Vintners Association (LVA) and the Vintners’ Federation of Ireland (VFI) were also found to be in contempt of court over their price freeze announcement, breaching previous undertakings given to the High Court arising from a previous case brought by the Competition Authority.

“This case was important for consumers. It is not in the public interest to have trade associations co-ordinate the prices of their members and it is a core principle of competition law they do not,” the authority said.

The authority’s chairperson Bill Prasifka called 2009 “a challenging and successful year” for the body.

“The Competition Authority strove to protect consumers from anti-competitive prices through cartel convictions, sending the message that trade associations are not allowed co-ordinate on price, and raising awareness of competition law and policy,” he added.

“The Competition Authority’s enforcement record continued apace in 2009, reinforcing the message that competition policy and enforcement is even more important in difficult times.”