COMPETITION (AMENDMENT) BILL 2011
Under the EU/IMF Agreement the Irish Government committed to introducing legislation to strengthen competition law in Ireland by ensuring the availability of effective sanctions for breaches of both EU and Irish Competition Law. As a direct result of this commitment the Minster for Job, Enterprise and Innovation, Richard Bruton, published the Competition (Amendment) Bill 2011 this September. In publishing the Bill the Minister announced that the purpose of the Bill was “to strengthen the enforcement of competition law and battle white collar crime in Ireland, and ultimately to help reduce costs across the economy and create jobs”.
The main features of the Bill include:
• An increase from 5 years to 10 years of the maximum
prison sentence for conviction on indictment of hardcore
competition offences;
• An increase from €4m to €5m in the maximum level of fines
for competition offences;
• Where a Court has determined that an undertaking has
engaged in anti-competitive conduct in criminal proceedings,
it will not be necessary for a person taking a civil action
for damages to prove that the conduct was prohibited. This
change aims to make it easier for private individuals affected
by anti-competitive practices to maintain an action for
damages.
• A person convicted of certain competition offences will not
be eligible for probation under Section (1) of the Probation
Offences Act 1907. The Probation Act allows the Court not to
record a conviction even though the elements of the offence
were proven.
• A person convicted of competition offences may have to pay
the costs of the investigation and court proceedings.
The purpose of the Bill is to deter competition offences and identify the negative view taken by the legislature to these offences. However, although the current regime allows for prison sentences of up to 5 years and maximum fines of up to €4m, the fines imposed to date have been nowhere near the maximum and any custodial sentences imposed have been suspended. In fact the total cumulative fines imposed by the Courts for breaches of Competition Law amounts to €600,000. One queries then as to whether these proposed increases in penalties will actually be employed in future cases.
Laura Fannin