Written answers

Thursday, 26 May 2016

Department of Jobs, Enterprise and Innovation

Competition and Consumer Protection Commission

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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259. To ask the Minister for Jobs, Enterprise and Innovation if her Department has examined empowering the Competition and Consumer Protection Commission to issue civil fines for anti-competitive practices; and if she will make a statement on the matter. [12424/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The current legal position is that civil fines are not provided for in Irish law for anti-competitive practices. The Attorney General has previously advised my Department that providing for them would pose legal difficulties having regard to Article 38.1 of the Constitution, even at the level of a class A fine. In that context any legislation to introduce civil fines that would lower the burden of proof from beyond reasonable doubt to the balance of probability would pose constitutional difficulties having regard to the protection afforded in Article 38.1 of the Constitution.

However, I am aware that the Law Reform Commission published an Issues Paper entitled "Regulatory Enforcement and Corporate Offences" on 27 January 2016. The Issues Paper invites views on the supervisory and enforcement powers of the State’s main financial and economic regulators (including the Competition and Consumer Protection Commission) and the issue of administrative and civil fines has been raised. I look forward to the outcome of this consultation process. Any recommendations or proposals that may emanate from this exercise in due course will be carefully considered by my Department.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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260. To ask the Minister for Jobs, Enterprise and Innovation if the search powers of the Competition and Consumer Protection Commission are sufficient to investigate anti-competitive practices; if restrictions exist; and if she will make a statement on the matter. [12425/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The search powers of the Competition and Consumer Protection Commission (CCPC) for the purposes of investigating alleged breaches of competition law are set out in section 37 of the Competition and Consumer Protection Act 2014 (the “2014 Act”). Section 37 of the 2014 Act gives the CCPC significant powers of entry, search and seizure in the context of competition law investigations. For the purpose of obtaining any information which may be required in relation to a matter under investigation, these powers include the power (i) to enter a place (if necessary by reasonable force) and to search that place, (ii) to seize and retain books, documents or records found at the place, and (iii) to inspect and take copies of or extracts from any such books, documents or records. In order to exercise these powers, the CCPC must first obtain a search warrant from the District Court.

The Deputy will be aware that the exercise of the CCPC’s search and seizure powers under section 37 of the 2014 Act was challenged in a recent High Court action taken by CRH plc against the CCPC. CRH’s High Court action related to an unannounced search carried out by the CCPC at the premises of CRH’s subsidiary, Irish Cement Limited, on 14 May 2015 as part of an ongoing investigation by the CCPC into alleged anti-competitive practices in the bagged cement sector.

I am aware that on the 19th May 2016, the Competition and Consumer Protection Commission (“the CCPC”) lodged an appeal against the High Court judgment delivered on 5 April 2016 prohibiting the CCPC from accessing or reviewing certain electronic documents seized by the CCPC during the search conducted in May 2015. As the matter is sub judice, it would not be appropriate for me to comment further on this matter.

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