Market sharing
What is market sharing?
Market sharing occurs when competing businesses secretly and unlawfully agree to allocate each other a share of a ‘market’. Market sharing agreements between businesses may include:
- Allocating each other customers
- Assigning each other geographic areas
- Not offering the same goods or services
- Dividing up contracts by value
A market sharing agreement does not have to be written down in order to be unlawful. Informal ‘gentleman’s agreements’ or ‘understandings’ between competitors are prohibited.
If you suspect a case of potential market sharing, then you should report it to the CCPC. If you prefer, you can report anonymously.
How is market sharing harmful?
Businesses participating in unlawful market sharing agreements will not service certain customers, operate in specific geographic areas, or provide goods/services which have been assigned to their competitor. As a result, a customer can only find one business who will provide them a particular good/service. The customer has no other options, so the business may increase their prices and/or reduce their quality. Consumers, businesses and even the State can be victims of market sharing.
What should you do if you are involved in market sharing?
Consider applying for immunity under the CCPC and DPP’s Cartel Immunity Programme (CIP) or leniency under the CCPC’s Administrative Leniency Policy (ALP). The CIP and ALP encourage self-reporting of cartel conduct in return for immunity and/or leniency.
What are the penalties for market sharing in Ireland?
Under the Competition Act 2002, market sharing can result in:
- Criminal convictions with up to 10 years imprisonment
- Fines of up to €50 million or 20% of turnover for individuals or undertakings
- Director disqualification for five years
