New competition law enforcement powers come into effect today

September 27, 2023

  • The Competition (Amendment) Act 2022 comes into operation today (Wednesday, 27 September 2023)
  • The CCPC now has the power to issue fines for breaches of Irish and EU competition law
  • The CCPC’s new administrative leniency programme is open for applications

The Competition and Consumer Protection Commission (CCPC) enters a new era of enforcement today with the commencement of the Competition (Amendment) Act 2022 (CAA 2022). The act transposes Directive 2019/1 (ECN+ Directive) into Irish law and expands the CCPC’s powers to enforce EU and Irish competition law.

Until now, Ireland was one of a very small number of European countries where fines for breaches of competition law could only be imposed by a court following a criminal prosecution.

The CCPC is now operating a new administrative enforcement regime and can issue administrative sanctions of up to €10 million or 10% of a company’s annual worldwide turnover for breaches of Irish and EU competition law.

The CCPC can also grant leniency from administrative financial sanctions to companies who disclose their participation in cartels and/or resale price maintenance, and provide evidence on other participants. To incentivise companies to come forward, full immunity from administrative financial sanctions is only available to the first successful applicant. Subsequent successful applicants may receive possible reductions of any administrative financial sanctions that might otherwise be imposed. The new administrative leniency programme will operate alongside the CCPC’s current criminal cartel immunity programme, which is run in conjunction with the Director of Public Prosecutions.

Brian McHugh, Chairperson of the Competition and Consumer Protection Commission, says:

“Today marks a new day in terms of competition law enforcement in Ireland. The substantial financial penalties that are now available to the CCPC will be an essential deterrent when tackling white-collar crime, including cartels. We are also introducing a leniency programme, which international evidence shows is the single most effective way of gathering essential evidence of collusion. Our leniency programme is now open for applications and we look forward to engaging with legal stakeholders on the practical operation of the scheme.

There are also a number of notable changes to the merger control regime, including new powers to call in mergers and acquisitions that would not previously have required mandatory CCPC approval where the CCPC considers the merger may have an effect on competition in markets for goods and services.

Furthermore, the CCPC’s ability to gather evidence against cartel suspects has been strengthened to allow the CCPC, with the relevant legal authorisations, to undertake video and audio surveillance, and record electronic communications in cartel investigations. More information is available at ccpc.ie.

Notes

January 2022 – The Competition (Amendment) Bill was published
Spring 2022 – The CCPC opened a series of consultations on the proposed policies
29 June 2022 – The Competition (Amendment) Act was enacted

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