Regulatory Powers There is provision in relation to the regulation of practices and agreements in the grocery goods sector. The Minister for Jobs, Enterprise and Innovation may make regulations in relation to certain aspects of the commercial relationships between grocery goods undertakings, having regard to certain specified considerations. The Minister may issue guidelines on the regulations. The regulations may deal with the form of contract […]
Agreements and Practices Both EU and Irish legislation prohibits agreements, concerted practices and decisions by businesses or businesses association which have as their the object or effect the prevention, restriction or distortion of competition. The prohibition covers formal and informal agreements, arrangements and tacit understandings between businesses not to compete or to limit competition. EU law applies to the restriction or distortion of competition between […]
Commercial Agency The EU Directive on commercial agency provides for the terms on which restrictions may be imposed on commercial agents following the termination of the agency. Non-compete clauses are valid only to the extent that it is concluded in writing and relates to a geographical area or group of customers and geographical area entrusted to the commercial agents and the type of goods covered […]
Price Fixing Agreements Arrangements and agreements, which have as their object, the fixing and setting of prices, either directly or indirectly, are prohibited by competition law. They are rarely, if ever, capable of being justified. Generally, price-fixing constitutes a serious breach of competition law. It is contrary to the very basic principle that prices should be set by competition. However, the application of uniform prices […]
Overview Intellectual property law may grant monopolies for the use of processes and technologies. Patents allow the inventor exclusivity in respect of the invention for a period, generally up to 20 years. Patent holders may license others to use the patent. Patent legislation provides for mandatory licensing in some limited cases. A patent licence agreement may contain conditions that infringe competition law. Copyright and trademark […]
Market Power The second aspect of competition law involves the control of monopolies and businesses with dominant market power. Monopolies and near monopolies have strong market power, which they are in a position to abuse. Until the Competition Act came into force, there was little restriction on such bodies using their market power as they as it wished. Monopolies and near monopolies may impose unreasonable […]
Notice The Competition Authority issued a new category declaration in relation to vertical agreements and concerted practices in 2010. This exempts certain types of agreements and practices from the general prohibition. The declaration closely follows the 2010 EU Commission equivalent block exemption regulation. The following types of vertical agreement comply with the conditions in S. 4(5) of the Competition Act to the extent that such […]
EU Block Regulation The 2010 EU Regulation on Vertical Agreements significantly changed the approach of previous block exemptions. It provides exemptions on more general terms, which in effect, allows more restraints to be permissible in principle unless prohibited. It adopts a so-called black list of prohibited terms and a white list of permissible terms. It gives greater flexibility in vertical agreements. A safe haven is […]
Article 102 Article 102 of the EU Treaty sets out indicative examples of abuse of a dominant position. They include; directly or indirectly, imposing unfair purchase or selling prices or other unfair trading conditions; limiting production, markets or technical development to the prejudice of consumers; applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; making the conclusion […]
Commission Powers Fair competition is a fundamental part of the European Union’s single market. Parties with significant market power may distort competition. They may divide up markets within the EU to the prejudice of the internal market. The prohibition on the abuse of a dominant position seeks to prevent serious distortion of the operation of the market by entities with monopolistic or almost monopolistic power, […]
Dominance Dominance must be considered with reference to the relevant market once ascertained and defined. Dominance has been defined as a position of economic strength enjoyed by an undertaking, which enables it to prevent effective competition from being maintained in the relevant market by affording it the power to behave to an appreciable extent, independently of its competitors and customers. The dominant undertaking is typically […]
Rationale Article 102 of the European Union Treaty prohibits the abuse of a dominant position within the European Union, insofar as it may affect trade between member states. The corresponding domestic legislation focuses on abuse of dominant position within the State. The prohibition applies to actions by “undertakings” which include individuals and corporations which undertake commercial activity. Fair competition is the fundamental part of the […]
Dominance Dominance must be considered with reference to the relevant market, once ascertained and defined. Dominance has been defined as a position of economic strength enjoyed by an undertaking, which enables it to prevent effective competition being maintained on the relevant market, by affording it the power to behave to an appreciable extent, independently of its competitors and customers. The dominant undertaking is typically in […]
Definition of Abuse Article 102 of the EU Treaty sets out indicative examples of abuse of a dominant position. They include; directly or indirectly, imposing unfair purchase or selling prices or other unfair trading conditions; limiting production, markets or technical development, to the prejudice of consumers; applying dissimilar conditions to equivalent transactions with other trading parties thereby placing them at a competitive disadvantage; making the […]