Dr John Fingleton, chairman of the Competition Authority today welcomed the commencement of the Competition Act 2002.
The new Act provides for stronger enforcement of competition law with 5-year penalties for serious cartel offences and new investigative powers, including powers of arrest and search.
The Act also transfers the merger control function from the Minister for Enterprise Trade and Employment to the Competition Authority which will take effect next year.
Dr Fingleton said that the Act marked a "substantial step forward" in the development of strong and proactive competition policy in Ireland.
"This Act comes at an important juncture. Although we live in an increasingly globalised environment, competition at the national, regional or local level is responsible for delivering value, quality and variety to consumers.
This applies to everyday products like milk, and services like pharmacy and motor insurance. Strong and vigorous competition in all sectors of the economy, but especially in those sheltered from international competition, is vital both for Irish consumers and for national competitiveness."
Dr Fingleton stressed that competition policy could not instantly tackle the problem of inflation. "Competition policy is not about price control. However, strong enforcement and advocacy can contribute to creating the structural conditions in markets that would facilitate greater innovation, expansion and productivity growth without fuelling price inflation.
He said that the Authority faced "an enormous and exciting challenge "of bringing results based on the new framework.
"We are well on the way to putting together a strong team of committed, talented and expert professionals, and look forward to delivering results," he said.