The European Court of Justice (ECJ) has declared that it is illegal under EU competition law for competitors to form agreements that restrict the production of food products.
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The precedent-making ruling came with judges censuring the operation of Ireland’s Beef Industry Development Society Ltd (BIDS), formed in 2002 to unite most of the country’s beef processors. The problem, said the court, was that BIDS was designed to compensate companies leaving the industry, to reduce production by 25% and boost prices.
The European Commission said today (20 November): “Agreements between competitors to restrict capacity or production are hardcore restrictions of competition which very often harm consumers.”
