No cartels prosecuted in five years

THE Competition Authority has still not prosecuted a single cartel despite estimates that price-fixing is costing consumers more than 600m euro each year.

The body, established five years ago, received hundreds of complaints over the actions of businesses in 2001 but no cartel proceedings were started.

Yesterday the authority's chief Dr John Fingleton insisted that recent staff appointments meant it was now a position to take a tougher stance on anti-competitive activity.

Its annual report shows it opened files on 222 complaints last year, a rise of almost 40%.

The complaints mostly centre on anti-competitive issues such as market exclusion by dominant firms, refusal to supply services and cartel-style behaviour.

Price-fixing costs Irish consumers around 600m every year, while cartels are estimated to cost the economy anything up to 1bn.

The authority's track record has been slammed as "dire" by a British-based research firm that compared the record of competition enforcers around the globe.

The Law Business Research said the Competition Authority had performed poorly over the last five years and was not doing enough to protect consumers.

Dr Fingleton said the authority had been progressing well and was now ready to vigorously pursue anyone involved in anti-competitive practice.

He said staffing problems and Constitutional impediments had made it more difficult for the authority to be more successful. Dr Fingleton also insisted that five years without a successful cartels prosecution was by no means out of line with similar bodies in other jurisdictions.

A number of new appointments have been made to beef-up the division, including the former chairman of the US Federal Trade Commission Terry Calvani, who will head up the cartels division.

The Competition Authority chief also said they had new powers to help them in their investigations, including the establishment of a Cartel Immunity Programme.The system will encourage whistle-blowers in cartels to tell authorities of anti-competitive practice in return for immunity from prosecution.

Tánaiste Mary Harney also insisted the Competition Authority was performing well and was continuing to vigorously tackle anti-competitive practices.

The authority is currently involved in a study of competition in various professions, including barristers, dentists, engineers, GPs, and solicitors.

It says the study is aimed at identifying any restrictions on entry or conduct and any other impediments to competition in these professions.