Joe Carey
Ceist:198 Deputy Joe Carey asked the Minister for Jobs, Enterprise and Innovation his plans to deal with below cost selling; and if he will make a statement on the matter. [25666/11]
Amharc ar fhreagraTuesday, 27 September 2011
Ceisteanna (168)
Freagraí scríofa
General policy in the area of prices is to allow retailers the freedom to determine the prices they charge their customers, whilst ensuring that in doing so they act in accordance with the provisions of competition law. In this regard competition law does not prohibit below cost selling as there is no reason to believe that below cost selling of itself acts against the interests of consumers or is in any sense anti-competitive. The use of aggressive pricing strategies is a perfectly legitimate marketing tool and is the normal outcome of the competitive process. Accordingly I have no plans to introduce a ban on below cost selling.
Competition law does, however, prohibit traders who hold a dominant position in the market from abusing that position. One such abuse of a dominant position is predatory pricing. Predatory pricing normally involves a dominant undertaking pricing goods or services in such a manner with the principle objective of eliminating or seriously weakening a competitor. Predatory pricing should not be confused with competitive pricing which is the result of a properly functioning market. The purpose of competitive pricing is to retain market share whereas predatory pricing is aimed at driving efficient competitors out of the market by abusing a dominant position. Persons who have concerns that undertakings may be abusing their dominance in the marketplace by engaging in predatory pricing should bring their concerns to the attention of the Competition Authority who have responsibility for investigating such matters.