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Complying with Competition Law
06
·
agreeing with competitors to limit production/supply by
controlling the quantity of goods or services to be sup-
plied in a given market
·
rigging bids among competitors so that one person or
company in particular wins the contract
The Competition Authority investigates cartels and prepares files
for the Director of Public Prosecutions (DPP) recommending
criminal prosecution. The DPP prosecutes serious criminal cases
on indictment and has done so in numerous cartel cases to
date.
Cartel behaviour such as that outlined previously is the most
serious form of anti-competitive conduct and is often referred to
as hardcore. The Government recently acknowledged this fact
by increasing fines and prison sentences for those found guilty
of such offences. The fines and prison sentences for serious
infringements of the law are as follows:
·
A business can be fined up to 5 million or 10% of the
business turnover, whichever is greater, if convicted on
indictment.
·
An individual found guilty of an offence can be fined up
to 5 million or 10% of their individual turnover, whichever
is greater. An individual can also be imprisoned for up
to 10 years.
Under Irish company law, a company director convicted of a
criminal offence under competition law will be automatically
disqualified from acting as a director in any company in the
State for five years from the date of conviction.
It is the responsibility of the directors and managers of a
business to ensure that the business complies with competition
law but it is not only directors and managers who can be
prosecuted. Employees who are involved in cartel activities
can also face prosecution. It is also important to note that
individual directors, managers and employees can be prosecuted
for competition law offences even if the company for which they
worked when committing the offence was not prosecuted.
An individual or business that assists a cartel can also be
found guilty of a criminal offence. In Ireland, there have been
convictions for aiding and abetting cartels where individuals did
not work for the firms engaged in price-fixing but took on a
co-ordinating or facilitating role in the cartel.
The Competition Authority, in conjunction with the DPP, operates
a Cartel Immunity Programme which enables the Authority to
make a recommendation to the DPP to grant immunity from
prosecution for the first member of a cartel to come forward,
confess involvement in the illegal activity and provide us with
information about it. Any business or individual who wants to
seek immunity can call 087 7631378.