Commission makes €1bn in cartel fines this week

Issued : Wednesday 30 June, 2010

Ireland lags behind strong European approach - Kelly

Labour MEP Alan Kelly has welcomed the fines imposed by the European Commission of more than €1 billion against two price fixing cartels in the past week.

"The fine of €518 million imposed today against pre-stressing steel producers and the fine of €622 million imposed last week against bathroom fitting manufacturers is clear evidence of the ongoing need for strong sanctions against companies who engage in price fixing to the detriment of consumers across Europe.

"I applaud the work of the Commission in the fight against cartels and in particular the hefty fines imposed which I hope will have a deterrent effect on those companies who attempt to rip off consumers.

"The Commission has led the way in recent years in imposing heavy penalties against price fixing cartels and I hope that the Irish government takes note of the importance of investigating and condemning cartels.

"Only this week we have witnessed further evidence of overcharging for groceries in Ireland yet the government appears to lack any vision in tackling the rip off culture in Ireland.

"It is proposing to downgrade the Competition Authority by amalgamating it with the National Consumer Agency. Furthermore, the Authority is currently operating below its statutory minimum membership. Evidence worldwide shows that the more resources given to tackling cartels the greater the benefits for consumers.

"In conclusion I call on the Minister for Enterprise & Employment to take a proactive approach to tackling price fixing cartels by providing greater resources for tougher investigation and enforcement of our competition laws. If the European Commission is so effective at EU level against cartels then there is no excuse for a lack of action by the government at national level."