Call for reform of Competition Act

Reform of the Competition Act was called for by Ned O'Keeffe (FF, Cork East).

He said there were some areas where the Competition Authority and the competition acts needed refinement to ensure that they secured fair play for all businesses and not just larger enterprises.

"Under the Competition Act, as currently drafted, there is no doubt that smaller companies do suffer some legal discrimination in competitive markets that are dominated by larger and frequently global companies," he added.

"Given the extremely positive roles that small and medium-sized enterprises play in the Irish economy, it is important that such an impact is recognised and addressed." For example, said Mr O'Keeffe, the Act treated independent owner-run companies differently than it treated branches of a larger company. If two independently owned companies combined to deliver a price response to a larger competitor, they were liable to be prosecuted for price fixing.

On the other hand if the large competitor instructed two branches of the company to co-ordinate prices in an area, they were not liable to be prosecuted for price-fixing unless the large competitor was deemed to be dominant.

"So it is all right for a large company to fix prices, but two smaller operators should not look at co-operating to meet a competitive threat for fear of prosecution." Mr O'Keeffe said under Irish competition law, a finding of dominance could be elusive.

He was speaking during a debate on a Fine Gael Private Members' motion calling for reform of the Competition Authority to strengthen its powers.