Batt O'Keeffe
Question:140 Mr. B. O'Keeffe asked the Minister for Enterprise and Employment if the £800 grant coming from a semi-State company (details supplied) could be considered to be anti-competition against the private sector. [11691/95]
Written Answers. - Anti-competitive Practice.
The Competition Act, 1991, prohibits anti-competitive practices and the abuse of a dominant position. The Act applies to undertakings, undertaking being defined as "a person being an individual, a body corporate or an unincorporated body of persons engaged for gain in the production, supply or distribution of goods or the provision of a service". At present the Act is enforced primarily by way of private civil actions in the courts between disputing parties.
Section 4 of the Competition Act prohibits and makes void all agreements between undertakings, decisions by associations of undertakings and concerted practices which have as their object or effect the prevention, restriction or distortion of competition in trade in any goods or services in the State or in any part of the State. Section 5 prohibits any abuse of a dominant position.
Section 6 provides that any person aggrieved in consequence of anti-competitive activity has a right of action in the courts for relief, by way of injunction or declaration and damages, including exemplary damages. The Minister has a similar right of action but the reliefs available to the Minister are restricted to an injunction or declaration.
While the Act illustrates examples of what may be prohibited, it is ultimately for the courts to decide what constitutes a breach of the law in any case brought before them.
Competition law is a complex matter involving detailed legal and economic arguments. It would not be possible for a court of law to decide on the basis of the very brief details supplied in the Deputy's question whether the matter referred to was in breach of the Competition Act, 1991. As the Minister, I have no function in adjudicating whether this, or any other practice, is in breach of competition law. This is a matter entirely for the courts to decide.
I would add, however, that the Competition Act, 1991, applies equally to firms in the public and private sectors. It is the responsibility of individual firms to ensure that their commercial activities are in compliance with competition law. In this respect I believe that firms in the public sector have a special responsibility, given the unique position they hold in their respective areas.
I would also refer the Deputy to the Competition (Amendment) Bill, 1994, which proposes to give the Competition Authority powers to investigate anti-competitive activity, either on its own initiative or as a result of third party complaints, including the power to take court actions where necessary. In line with the policy agreement for Government I am committed to strengthening the enforcement of competition by giving the Competition Authority powers of enforcement and by enabling the courts to impose stiff fines on those found to be engaging in unfair competition. I intend to seek to have the Bill enacted as soon as possible.