Written answers

Tuesday, 19 May 2009

Department of Enterprise, Trade and Employment

Retail Sector

12:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 104: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to reform the Competition Acts to deal with practices which allegedly result in abuses by one of the major multiples in a dominant position in the grocery goods trade; and if she will make a statement on the matter. [19867/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Competition Acts specifically provide that any abuse by one or more undertakings of a dominant position in the State or in any part of the State is prohibited. Should the Deputies have any evidence of undertakings in the retail sector engaging in the abuse of a dominant position, I would urge them to bring such evidence to the attention of the Competition Authority in order that it may be investigated fully.

In addition to prohibitions in relation to instances of abuse of dominance, the Competition Acts contain further specific provisions prohibiting retailers from engaging in certain practices in their dealings with suppliers. Again any evidence of retailers engaging in such prohibited practices should be brought to the attention of the Competition Authority.

I am aware of suggestions that have been made by a number of commentators that amendments should be made to competition law which would allow for the introduction of a code of practice to regulate the relationship between retailers and suppliers. Whilst I would I have no objection in principle to considering any concrete proposals in relation to the way competition law impacts on the relationships between businesses, any such proposals would need to address how any new regulations would be enforced in practice.

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