Irish competition authorities are to prosecute Irish retailers Dunnes and Tesco Ireland over allegations that they violated a ban on selling products below cost.

Investigators have been examining invoices from both retailers following complaints that babyfood was sold at a below-cost price, reported The Grocer. Selling goods below cost is banned in Ireland under the Groceries Order.

A spokesman from the office of the director of consumer affairs said both retailers would be prosecuted for the alleged breaches. The case is likely to come to court in January.

The decision was welcomed by independent retailers' lobby group RGDATA.

"It is vital groups with such incredible market power are not allowed to abuse it at the expense of consumers, suppliers and retailers," the group's director general, Ailish Forde, was quoted by The Grocer as saying.