Competition law enforcement in Ireland
Why is competition law important?
Competition laws aim to make markets work better, by ensuring that all companies act independently of one another and compete in an equal and fair manner. This helps consumers, businesses and the wider economy. By requiring fair and open competition, competition laws promote efficiency and innovation and reduced prices for consumers of goods and services.
It is important to be aware of competition laws because a breach of competition law can result in serious consequences for those responsible for the breach, for example in the form of criminal convictions or administrative penalties.
Where do I find the relevant competition laws?
Relevant competition laws are contained in both Irish and EU legislation.
At the EU level, Articles 101 and 102 of the Treaty on the Functioning of the European Union set out the European prohibitions on anti-competitive behaviour and abuse of a dominant position. These EU competition law provisions apply in circumstances where there is an effect on trade between Member States of the EU.
The relevant domestic Irish legislation is contained in the Competition Act 2002. Sections 4 and 5 of the Competition Act 2002 contain Irish law prohibitions which are equivalent to those contained in Articles 101 and 102 of the TFEU.
Section 4 prohibits all agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition in trade in any goods or services in the State or in any part of the State.
Section 5 prohibits the abuse of a dominant position by one or more undertakings in trade for any goods or services in the State.
Who does competition law apply to?
Competition law under both Irish and EU law applies to what is known as an “undertaking”. An undertaking is defined as, “a person being an individual, a body corporate or an unincorporated body of persons engaged for gain in the production, supply or distribution of goods or the provision of a service”. Learn more about who competition law applies to.
How is competition law enforced?
Competition law enforcement in Ireland can proceed pursuant to criminal law, administrative procedure or in a civil capacity before the Courts. The route taken will depend on the facts of the particular case – for further information please see our guidance note on choice of enforcement regime.
Criminal: The criminal enforcement route can result in criminal convictions for those who breach competition law. As regards criminal sanctions, sections 6 and 7 of the Competition Act 2002 make it a criminal offence to breach section 4 or 5 of the Competition Act 2002, or Article 101 or 102 of the TFEU.
Depending on the facts of a particular case and the breach involved, the CCPC may either bring a summary prosecution in the District Court or, in more serious cases, refer a case to the Director of Public Prosecutions (DPP) for prosecution on indictment.
Administrative: The recent introduction of an administrative enforcement regime in 2023 has significantly enhanced the powers of the CCPC to enforce both EU and Irish competition law. Under the administrative enforcement regime, the CCPC through independent Adjudication Officers and subject to court approval, is empowered to make decisions concerning alleged breaches of EU and Irish competition law and may impose administrative financial sanctions on undertakings, and associations of undertakings, of up to €10 million, or 10% of total worldwide turnover (whichever is greater), in the business year preceding the CCPC’s decision.
You can learn more in our Adjudication section.
Civil: The CCPC can apply to the Circuit Court or the High Court pursuant to section 14A of the Competition Act 2002 to seek a civil declaration or injunction in any case involving an alleged breach of section 4 or 5 of the Competition Act or Article 101 or 102 of the TFEU.
What is the role of the CCPC in enforcing competition law?
The CCPC is the statutory body responsible for investigating and enforcing competition laws in Ireland.
The Competition and Consumer Protection Act 2014 includes the promotion and enforcement of competition laws as statutory functions of the CCPC. The CCPC also has an investigatory function to carry out an investigation into any suspected breach of Irish or EU competition laws.
The CCPC may investigate a suspected competition law breach on its own initiative, in response to a complaint which has been made to the CCPC or to assist with an investigation by the European Commission or another EU Member State’s national competition authority. Similarly, the CCPC may seek the assistance of another competition authority when investigating competition law breaches.
What constitutes anti-competitive behaviour?
Competition law prohibits businesses from:
Entering into anti-competitive agreements or concerted practices (formal or informal, written or verbal).
Abusing a dominant position.
Examples of prohibited agreements include agreements which:
Fix prices.
Limit or control production or markets.
Share markets or sources of supply.
Collude on bids.
Apply different conditions to equivalent transactions to disadvantage competitors.
You can learn more in our competition law breaches section, including about cartels, bid-rigging, and abuse of dominance and explore the CCPC’s investigation process and how to report anti-competitive behaviour.
