Waste manager City Bin has lodged a formal complaint with the Competition Authority against the four Dublin local authorities.
The company, which is the second largest collector of household waste in the capital, alleges the authorities have abused their position "by attempting to limit or control the waste market", contrary to Section four and five of Competition Act 2002.
The move follows a decision by the authorities to end private operators' freedom to operate anywhere they like in the city.
The councils claim that private firms, operating in the market, have "cherry-picked" the business.
Dublin City Council's assistant city manager, Matt Twomey said the councils had sought, and received confirmation from the European Commission that they are "operating within Irish and EU law".