Vintners settle in price-fixing action

Legal proceedings by the Competition Authority against the Licensed Vintners' Association over alleged price fixing of alcoholic drinks in Dublin in 1996 and 1997 have been settled, without admission of liability, at the High Court.

Under the settlement terms the LVA yesterday gave undertakings to the court, including undertakings that the association, its officers, servants or agents would not breach provisions of Section 4 of the Competition Act 2002 regarding the sale of and the price at which alcoholic beverages are sold to the public for consumption on licensed premises owned, managed or controlled by LVA members.

The LVA also undertook not to recommend to its members the prices, margins, increases in prices and increases in margins, earned on the sale to the public of alcoholic beverages for consumption on licensed premises owned, managed or controlled by the association's members.

The association further undertook to inform its members of the settlement of the matter and the undertakings given that the association could not recommend to them prices, margins, increases in prices or increases in margins earned on the sale to the public of alcoholic drinks for consumption on premises of LVA members.

The terms restrain the parties from making any public statement on the proceedings outside what is contained in the written terms of settlement.

On the basis of the terms of settlement handed into court yesterday, Mr Justice Kearns granted an application by Mr Anthony Collins SC, for the Competition Authority, to strike out the proceedings.

Mr Collins said the action arose from an application by the Authority for orders regarding alleged price fixing on premises in the Dublin area in 1996 and 1997. He said the defendants denied the allegations and it was agreed the settlement did not constitute an admission of a breach of the Competition Act and also did not acknowledge that the facts alleged were true.

Mr David Barniville, for the LVA, said the allegations by the Authority were fully denied and the undertakings given by the LVA were provided without any admission of liability.