Oireachtas Joint and Select Committees
Tuesday, 1 October 2019
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Competition Law and Trade Associations: Discussion
Mr. Brian McHugh:
On mergers, I am not sure whether the Deputy was referring to the Slaney Foods merger, which was adjudicated by the European Commission, or the Dawn Meats-Dunbia merger, which we examined. In both cases, there was a full analysis and consideration of all the evidence provided by multiple parties. We produce detailed guidelines on how we approach mergers, and the European Commission does the same in respect of its procedures. We also produce a detailed decision in such cases setting out how we arrived at our conclusion. Any merger where two parties in a market come together could arguably be seen as causing a reduction in competition. The test we use is whether there has been a substantial lessening of competition in the market. We go through a lengthy process of considering all the evidence before arriving at a conclusion on that question.
As I said on the previous occasion, the conclusion in the case in question was that there was no evidence of a substantial lessening of competition as a result of the merger, as there was a sufficient number of players to provide competitive pressure within the market. We set out our position in great detail and discussed the matter at length with the Irish Farmers Association and others. We are open to having those discussions, taking viewpoints into consideration and examining any evidence with which we are presented. We are always keen to speak to anyone who can bring additional evidence to us and provide new insights. We follow a similar process where a claim is made that a cartel is in operation. We want and need to see evidence of any such claim. We do have certain powers - in some circumstances, very strong powers - but we do not use them without serious consideration and without seeing the evidence that will make it worthwhile to use those powers. That is a key point of discussion we have with lots of players in lots of markets. We are keen to understand their concerns but we really do need to see the evidence. Without going into great detail on a specific merger decision, the process by which we arrive at a finding is comprehensively set out and we are open to discussing that process with anyone.