The Competition Authority has welcomed a High Court ruling that two publicans’ organisations must publish information stating that a price freeze is no longer in operation.
The court today ordered the Vintner's Federation of Ireland and the Licensed Vintners Association to publish the information in three of next Sunday's newspapers.
The organisations were before the court after Mr Justice Liam McKechnie ruled that they had been in breach of a previous court undertaking over alleged price fixing.
Today, the judge said he was satisfied that an apology from the VFI and LVA and a letter written to their members advising them of the immediate cessation of the price freeze, along with a press release issued last night were a sufficient response to his ruling last week.
Costs were awarded to the Competition Authority.
In a statement, the Competition Authority noted that the VFI and LVA were found to be in contempt of court because of their December 2008 recommendation on prices. The recommendation on prices breached previous undertakings given to the High Court arising from cases taken by the Competition Authority.
Competition Authority chairman Bill Prasifka said: “The outcome of this case is a victory for consumers. The Competition Authority was extremely concerned that the vintners’ recommendation on price harmed competition and consumers.
“It is a core principle of competition law that trade associations should have no role in coordinating the business decisions of their members, especially decisions relating to prices. I hope that the Court’s decision removes any uncertainty amongst publicans about the freedom to reduce prices just as other retailers have done during this period of unprecedented deflation.”