Competition Authority secures convictions

The Competition Authority secured two cartel-related convictions last year and is involved in a prosecution in the Citroen motors…

The Competition Authority secured two cartel-related convictions last year and is involved in a prosecution in the Citroen motors cartel case.

In its annual report, published this morning, the authority said it had secured a conviction against Denis Manning for aiding and abetting the Irish Ford Dealers Association and its members in the implementation of agreements to fix the selling prices of Ford motor vehicles between May 2001 and June 2003.

Manning was sentenced to a 12-month sentence and fined €30,000. This was the first criminal conviction under the Competition Act 2002 in the Central Criminal Court.

The trial of a second case involving the motor industry is due to start next Monday, March 3rd.

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John McGlynn faces six charges relating to the aiding and abetting of members of the Citroen Dealers Association in the alleged restriction or distortion of competition in the trade of cars.

Additional convictions for cartel offences were also secured in 2007 in the heating oil case in the west of Ireland, following on from the 15 successful convictions secured in 2006 in the same case, the authority said.

Last year the authority issued 70 reasoned determinations on proposed mergers and continued its advocacy of the professional services, resulting in a report into the dental profession that highlighted the need for urgent regulation reform.

Bill Prasifka, chairman of the authority said the conviction against Mr Manning was particularly significant as "it sent a strong signal to the wider community that the courts viewed competition offences as serious crimes against the public and that offenders should expect severe sanctions".

However, Mr Prasifka admitted a "significant setback" had been the Supreme Court overturning of the High Court's decision in the authority's action against the Irish League of Credit Unions.

"We have carefully studied that decision, committed ourselves to heeding the important lessons learned therein and recalibrated our civil enforcement strategies to ensure that future cases are received more favourably by the courts," he said.