Written answers

Tuesday, 14 June 2016

Department of Jobs, Enterprise and Innovation

Competition Law

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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622. To ask the Minister for Jobs, Enterprise and Innovation the measures in place to prevent so-called predatory pricing and the elimination of competition with the various sectors of the economy; and if she will make a statement on the matter. [15939/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Predatory pricing describes conduct on a market whereby a dominant firm sells its goods or services below a defined benchmark cost of production, with the intent of forcing its existing competitors from the market, and dissuading potential competitors from entering the market. Predatory pricing may amount to an abuse of a dominant position in breach of section 5 of the Competition Act 2002, and/or Article 102 of the Treaty on the Functioning of the European Union (TFEU). By definition, a firm’s conduct can only be “predatory” if the firm occupies a dominant position. A firm pricing below cost will not breach section 5 of the Act or Article 102 TFEU if it does not occupy a dominant position on a given market.

The Competition and Consumer Protection Commission is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 9(5) of the Competition and Consumer Protection Act 2014 provides that the Commission is independent in the performance of its functions, including carrying out investigations of alleged anti-competitive practices. As investigations and enforcement matters generally are part of the day-to-day operational work of the Commission, I, as Minister for Jobs, Enterprise and Innovation have no direct function in the matter.

Should the Deputy be aware of any particular alleged breaches of competition law, I would urge him to bring the matter to the attention of the Competition and Consumer Protection Commission directly.

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