Guidance on Trade Associations

What are the legal requirements of Trade Associations under Irish Competition Law?

This guidance outlines the role of trade associations in Ireland, highlighting both their positive contributions and potential risks under competition law. It includes examples of enforcement actions and explains the legal framework that governs collective business activities. Businesses should consult this guidance to ensure compliance and avoid anti-competitive practices.

This guidance is based on the 2009 notice published by the Competition Authority, now the CCPC, to inform trade associations and businesses about the boundaries set by Irish competition law on joint or coordinated actions among competitors.

How can trade associations benefit the market?

Trade associations can play a productive, pro-competitive role in the development of a sector, thus promoting the efficient functioning of the market. However, they must avoid facilitating anti-competitive behaviour such as price fixing or market sharing.

What are some examples of anti-competitive behaviour? 

Criminal convictions have been secured relating to price fixing activities by the:

• Connaught Oil Promotion Federation

• Irish Ford Dealers Association

• Citroën Dealers Association

In all three cartels, trade association meetings were used as the venue for price fixing agreements between competitors.

The Authority also undertook legal proceedings in cases which involved trade associations or associations of undertakings, such as:

• Beef Industry Development Society

• Irish Medical Organisation (2014) 

• Licensed Vintners Association and Vintners’ Federation of Ireland.

What activities are areas of concern for compliance with competition law?

Trade associations must avoid the following practices:

• Co-ordination on pricing – setting prices collectively among members.
• Co-ordination on market allocation and output – dividing markets or limiting production.
• Collective boycotts and negotiations – excluding competitors or negotiating as a group.
• Participation in anti-competitive meetings – using meetings to form unlawful agreements.
• Information exchange – sharing sensitive business data that could reduce competition.

Where can you find more information?

You can read the full Guidance note on Trade Associations for further details.

If you still have concerns, please contact us.

Notices set out the considered views of the CCPC relating to a particular area of competition law, and are provided for guidance purposes only. It is ultimately a matter for the courts to decide whether or not a breach of the Irish competition law has occurred.