JAIL sentences for anyone who breaches competition law will become a reality today after the President, Mrs Robinson, signs the Competition (Amendment) Bill, which was passed by the Seanad yesterday.
The Bill, which criminalises anti competitive behaviour in Ireland, means employees can be imprisoned for up to two years, while businesses can be fined up to 10 per cent of worldwide turnover.
A new director of competition enforcement, who has yet to be appointed, will be given powers to search premises and take prosecutions.
Much of the Bill has been toned down during its sometimes rocky passage through the Dail and Seanad. At one stage the chairman of the Competition Authority, Mr Paddy Lyons, described aspects of the Bill as "unworkable" and maintained it could actually weaken competition. A subsequent meeting with the Minister after changes were made was described as "cordial".
Mr Vincent Power, EU and competition law partner at A&L Goodbody solicitors, said businesses should now audit their agreements and practices. He also warned that the European Commission already had the power to impose fines of up to 10 per cent of turnover.
"An Irish business could now be fined twice - under both Irish and EU competition law," he said.
One of the most important provisions in the Bill, according to Minister for Enterprise and Employment Mr Bruton, is the ability of the Competition Authority to take action in the civil courts. He has pointed out that small businesses have not been able to afford the high cost of legal, action and the risks involved.
However, aggrieved persons would still be able to take action for damages on the foot of actions by the Competition Authority.
The authority's staff would be increased by 50 per cent to help with. this, the Minister promised when he introduced the Bill to the Seanad.
In addition, directors would be presumed to have consented to any activities found to be unlawful, unless they could prove themselves innocent.
This combination of criminal sanctions, stiff fines and imprisonment was meant to ensure compliance with the law and to root out anti competitive activity in our economy, Mr Bruton said.
Agreements which constitute criminal offences under the Bill include:
. directly or indirectly fixing purchase or selling prices or any other trading conditions;
. those which limit or control production, technical development or investment;
. those which share markets or sources of supply;
. those which apply dissimilar conditions to similar transactions with other trading parties, thereby placing them at a competitive disadvantage;
. agreements which make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature and according to commercial usage, have no connection with the subject of such contracts.
Prosecution for criminal offences will be either at the summary level or conviction on indictment. Summary convictions will mean a maximum fine of £1,500 or a prison sentence of up to six months.
