Irish newspapers in price-fixing probe

AN INVESTIGATION into alleged price fixing by The Irish Times and the Irish Independent has resulted in both newspapers agreeing to change their contracts with retailers.

The newspapers will also make clear on their front pages that their cover prices are recommended retail prices only. Retailers will be free to sell either title at a higher or lower price if they wish.

The Competition Authority, which polices anti-competitive practices, said the newspapers would escape court action if they agreed to the moves.

The authority also said the newspapers’ practices did not comply with competition law. Both papers rejected this.

The probe began 15 months ago after a government department passed information on alleged resale price maintenance by both papers.

The alleged price-fixing came to light when the department put a contract out to tender for the supply of newspapers.

During the course of the tender process, a retailer said the newspapers prohibited them from offering the titles at a discount.

Competition law states that agreements that prevent or distort competition, including direct or indirect price fixing, are illegal. The authority declined to name the department involved on grounds of confidentiality.

Independent Newspapers (Ireland) Limited, which publishes the Irish Independent, has agreed to provide all its agents with a new contract within three months, as a result of the investigation.

The revised contract will state explicitly that retailers are free to set their own prices.

The Irish Times Limited will insert a new clause on pricing in its standard terms and conditions.

Both papers have also undertaken to provide further information to the authority on future steps they will take to ensure that the companies’ directors, officers and agents comply with competition law.

In order to establish a breach of competition law, the authority would need to demonstrate in court that there was an agreement or practice that had the aim or effect of restricting competition.

In its published decision relating to the Irish Times, the authority said the company was “helpful and co-operative” throughout the course of the investigation and offered remedies to address the authority’s concerns.

The Independent Newspapers decision did not make a similar statement. The new practices will also apply to the Independent-owned Evening Herald and Sunday Independent.