The High Court will decide later this month whether two publicans' organisations are in contempt of court orders by announcing a drinks price freeze.
The Competition Authority claims announcements by the Licensed Vintners Association (LVA) and the Vintners Federation of Ireland (VFI ) on December 1st last of a one-year freeze of the price of drinks in pubs, with immediate effect, was in breach of previous undertakings given to the court in settlement of proceedings over alleged drink price fixing.
It claims a price freeze, especially during a recession, was likely to result in substantial consumer harm and breached the Competition Act 2002.
The authority earlier this year brought proceedings alleging contempt and seeking orders for the CEO’s of the LVA and VFI to be brought before the court to explain why they should not be imprisoned for contempt or have the assets of their organisations seized.
Mr Justice Liam McKechnie today said he would rule on the contempt issue on July 24th.
The LVA and the VFI both deny they are in breach of the Competition Act or of the undertakings previously given to the court. Both organisations claim their legal advice was that was not the case.
Earlier today, Anthony Collins SC, for the authority, said the current applications arise from the 2003 settlement of the proceedings brought by the authority in 1998 against the Licensed Vintners Association and the 2005 settlement of proceedings against the VFI.
Counsel said the settlements were without admission of liability and provided the publicans' bodies would not breach provisions of the Act regarding the sale and price of alcoholic drinks in licensed premises. The organisations also undertook not to recommend prices or price increases to their members.
Last December’s press statement about the price freeze amounted to a recommendation from the publicans to their members in relation to the price of drinks contrary to the undertakings given when the cases were settled, counsel said.
In reply to the judge, counsel said his side did not wish to see anyone jailed or to seize assets but wanted to have the terms of the settlement complied with.
Michael Collins SC, for the publicans, said there was nothing in the December 1st announcement which conflicted with the undertakings given to the court in the settlements.
He said the LVA and VFI were not, in the December 1st release, recommending any particular price at which their members should sell alcoholic beverages. That announcement was a recommendation against increasing prices for 12 months and members were not prevented or discouraged in any way from decreasing their prices.