The chairman of the Competition Authority, Dr John Fingleton, has said "severe penalties" will be sought for companies or individuals found guilty of anti-competitive behaviour.

The authority conducted 30 searches of businesses suspected of engaging in anti-competitive practices last year, five of which led to legal proceedings. Files were referred to the Director of Public Prosecutions in two cases.

The Competition Act allows for fines of up to 10 per cent of turnover, or £3 million, whichever is the higher, on conviction in the High Court.

"Prosecuting breaches of the law is a core plank of the Competition Authority's duty to foster and support a climate of healthy competitive rivalry in the Irish economy," Dr Fingleton said at the publication of the authority's 1999 report. In all cases where evidence of cartel-type behaviour exists, the authority would bring proceedings, he warned.

The authority has begun proceedings against as yet unidentified beer and soft drink wholesalers and against the Soft Drink and Beer Bottlers' Association. In both instances files have been sent to the DPP. The authority brought a summary prosecution against Estuary Oil Ltd, of Limerick. That case has come to court, but has been adjourned.

An inquiry into bread price fixing has led to proceedings being started against three unnamed bread firms, and another inquiry concerning the milk sector has led to proceedings against Cork Milk Producers, Sligo Dairies, Tesco Ireland, and Superquinn.

A case against the Licensed Vintners' Association and the Vintners' Federation of Ireland has been pending since 1998.

The annual report states there was one merger referral from the Tanaiste, Ms Harney, during the year.