The Irish Government has overturned 18-year-old legislation that allowed manufacturers to fix the minimum resale prices charged for their products, replacing it with a new Competition Act.


The old Groceries Order, Caitríona Halpin at the Department of Enterprise, Trade and Employment told just-food, was designed to protect producers: “The idea was that certain food stuffs, basics like bread and milk, would not be allowed to be sold below the cost of production.”


However, the consequence of the legislation in the modern market has been to keep the price of groceries artificially high by allowing suppliers to dictate the minimum price that their products could be sold at, the Minister for Enterprise, Trade & Employment Micheál Martin said.


The new Competition Act builds on the provisions of the 2002 Competition Act by specifically prohibiting the fixing of minimum retail prices by suppliers, unfair discrimination in the grocery trade, and the payment of advertising allowances and “hello money”.


Announcing the new legislation, Martin said: “The reality is that for industry to survive and prosper in a global economy, it must be able to compete with the best. It is essential that we guarantee fair competition. However, we will not do industry any favours by continuing to protect it from all competition on domestic markets. That is what the Groceries Order did. Our competition laws are not designed to protect competitors. They are designed to protect competition.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The minister, just-food has learnt, expects to see changes to the retail price of consumer products within a matter of weeks.