Decisions of business associations
Business Associations and Competition Law
Competition law applies not only to individual undertakings, but also to bodies such as trade associations and other representative groups whose members include one or more undertakings. These bodies are known as associations of undertakings.
Under section 4 of the Competition Act 2002 as amended, and Article 101 of the Treaty on the Functioning of the European Union, the decisions of associations of undertakings can infringe competition law if they have as their object or by their effect the prevention, restriction or distortion of competition.
What is a decision of an association of undertakings?
Decisions of associations of undertakings can take many forms including, for example, articles of association, internal rules of the association, procedures adopted by the association, codes of conduct, standard terms or conditions, pricing or fee guidelines, or decisions or recommendations issued by the association.
What is allowed and what is illegal?
Business associations can play a productive and pro‑competitive role in the development of a sector, for example by promoting best practice, improving efficiency, or representing the interests of their members. Such activities are generally permitted where they do not interfere with competition and allow businesses to continue to act independently in the market.
However, the activities of business associations can also restrict competition. Competition concerns may arise where a business association coordinates anti‑competitive conduct, facilitates the exchange of commercially sensitive information, or otherwise influences members’ behaviour in a way that reduces their ability or incentive to compete independently. This can occur even where participation is voluntary or where no explicit agreement between competitors is reached.
While not exhaustive, the following types of decisions or practices by business typically raise concerns under competition law:
- Decisions or practices that directly or indirectly fix prices, fees, discounts, or other trading conditions
- Decisions or practices that limit or control production, supply, investment, or technical development
- Decisions or practices that involve coordinating a collective boycott of suppliers, customers, competitors, or government schemes
- Decisions or practices that restrict the movement of labour, including by limiting recruitment or setting wages
- The sharing or coordination of commercially sensitive information (such as future prices, costs, output, or strategic plans) between members through the association
Has the CCPC previously taken action against associations of undertakings?
Yes. The CCPC and its predecessor, the Competition Authority, have taken a number of enforcement and compliance actions involving associations of undertakings.
The Competition Authority previously secured criminal convictions for price-in cases involving Connaught Oil Promotion Federation, Irish Ford Dealers Association and the Citroën Dealers Association. In each of these cases, meetings organised by business associations were used as a forum for competitors to reach price‑fixing agreements.
The Competition Authority has also initiated civil enforcement proceedings in cases involving associations of undertakings, including against the Beef Industry Development Society and the Irish Medical Organisation (2014). In addition, proceedings were taken concerning the Licensed Vintners Association and the Vintners’ Federation of Ireland, where the associations attempted to coordinate the conduct of their members in the market.
More recently, the CCPC has taken a range of actions aimed at addressing competition concerns involving associations of undertakings. This includes securing:
- the removal of minimum recommended rates for tour guide services from the Approved Tour Guides of Ireland (ATGI) website;
- a legally binding agreement with the Irish Property Owners Association in relation to a press release concerning possible collective action; and
- a policy change by Chartered Accountants Ireland regarding the transfer of active training contracts between accounting firms in Ireland.
If you believe you have evidence of a business association acting in an anticompetitive way, you can contact the CCPC through our complaints section.
