Written answers
Wednesday, 27 October 2010
Department of Enterprise, Trade and Innovation
Retail Sector Pricing Strategies
8:00 pm
Richard Bruton (Dublin North Central, Fine Gael)
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Question 548: To ask the Minister for Enterprise, Trade and Innovation if his attention has been drawn to the problem of large supermarkets using alcoholic drinks as a loss leader to attract custom to their store and the complaint that this represents unfair competition to specialist off licence outlets; if he is satisfied that the existing laws provide adequate protection for fair competition in this respect; and if he will make a statement on the matter. [38650/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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The use of aggressive pricing strategies is a legitimate marketing tool and is the normal outcome of the competitive process. Low cost and below cost selling by a retailer, including an off-licence, is not of itself an offence unless it involves abuse of a dominant position. A determination on whether a retailer is abusing a dominant position in the marketplace would necessitate a comprehensive investigation by the Competition Authority.
The Authority is the independent statutory body responsible for enforcing competition law in the State and complaints of any alleged anti-competitive practice should be referred to it.
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