Written answers

Wednesday, 30 January 2008

Department of Enterprise, Trade and Employment

International Trade

8:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 625: To ask the Minister for Enterprise, Trade and Employment if he will provide an explanation of the legal term inter-state trade to the extent that it affects company and competition law here; and if he will make a statement on the matter. [1148/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In relation to competition law, the precise term "inter-state trade" does not appear either in the Competition Act 2002 or in Articles 81 and 82 of the Treaty of Rome. However, the term "trade between Member States" appears in both Articles 81 and 82.

Article 81(1) prohibits agreements, decisions and concerted practices which "may affect trade between Member States" and which have the object or effect of preventing, restricting or distorting competition in the common market. However, agreements, decisions or concerted practices which contribute to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, may be exempted from this prohibition if the criteria set out in Article 81(3) is met.

Article 82 prohibits the abuse of a dominant position within the common market "in so far as it may affect trade between Member States."

In the context of those two articles, the term "trade between Member States" refers to trade between Member States of the European Union. Thus, anti-competitive agreements, decisions or restricted practices occurring in Ireland would be prohibited under this Article if they were capable of having an effect on trade between any of the Member States.

Breach of Articles 81 and 82 is an offence, punishable under Irish competition law by fines of up to €4m or 10% of turnover and also by imprisonment for a term of up to five years in respect of breach of Article 81.

The term "inter-state trade" does not feature in domestic or EU company law.

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