An investigation by the Competition Authority into the sale of liquid milk has resulted in five companies, including Tesco and Superquinn, being issued with plenary summonses relating to price-fixing. Two litres of milk can cost up to £1.32 in this State, compared to as little as 82p in Northern Ireland.
Mr Pat Massey, director of competition enforcement, said the file had gone to the Director of Public Prosecutions (DPP). The authority had undertaken the investigation last year. As a result it had decided to institute civil proceedings against five companies. The companies are: Tesco, Superquinn, Glanbia, CMT Dairies and Sligo Dairies.
He said the function of the authority was to investigate possible or alleged breaches of the Competition Act. Where the authority came to the conclusion that there may be a breach of the Act, it may institute civil proceedings where it can look for a court injunction ordering the parties to stop engaging in certain practices. The legislation also allows for significant penalties for breaches of the Act, but they can be imposed only where there has been a criminal prosecution.
In an RTE interview yesterday, Mr Massey said certain matters came to the authority's attention during the investigation. However, the fact that the authority could bring proceedings against certain parties did not mean that those parties were concerned with the matters that had gone to the DPP. In the event of a criminal prosecution the Act allowed for penalties on companies of £3 million or 10 per cent of their turnover, whichever sum was greater.
He said it was not unusual for the authority to refer some matters to the DPP. The legislation providing for criminal penalties had been on the statute books only since July 1996, so there had not been that many cases.
It was not possible to contact any of the companies yesterday. It is understood that at least two intend contesting the allegations.