Watchdog goes to court as part of cement industry investigation

Competition commission to ask High Court what documents can be used from raids

The State's competition watchdog will go to the High Court next month as part of its probe into alleged anti-competitive practices in the cement industry.

The Competition and Consumer Protection Commission (CCPC) last month seized thousands of documents when it raided the offices of Irish Cement, a subsidiary of CRH, Ireland's largest listed company. It also visited the offices of several other companies.

The CCPC will ask the court next month to rule on which of the documents seized it is allowed use to build its case, as some of the material could constitute privileged information, such as legal advice.

The watchdog has launched an investigation into whether Irish Cement has abused its dominant position in the market, which the company denies. Irish Cement declined to comment on Wednesday, on foot of the legal moves by the CCPC.

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The commission last night confirmed it was seeking High Court approval to filter the material it seized from the CRH subsidiary.

“When it conducts such searches the commission is entitled to compel the target business to disclose information to it even if the target claims that the information in question contains legally privileged material,” said the CCPC.

The commission said it had “made an application to the High Court seeking a determination as to whether certain information seized from Irish Cement during the search operation on May 14th constitutes legally privileged material”.

The CCPC is obliged to keep the information confidential until it gets such a determination. It is understood that the documents seized have not yet been handed over to the investigating team, pending the High Court determination.

Irish Cement has previously stated that it fully facilitated the raid on its premises last month, and is co-operating fully with the CCPC investigation.

The commission’s investigation is focused on the €50 million bagged-cement sector. And the commission has stressed that the investigation could take some time to complete before any further legal action, if any, is taken.

The commission carried out its searches last month on foot of a District Court warrant, with officials supported by gardaí.

The CCPC stressed that next month’s planned court hearing is simply to help it filter out Irish Cement’s legal advice, and does not mean it has decided to prosecute a branch of Ireland’s biggest company.

“For the avoidance of doubt, the commission has not instituted High Court proceedings against Irish Cement for any breach of competition law,” it said.

Mark Paul

Mark Paul

Mark Paul is London Correspondent for The Irish Times