ESB/RECI [1996] IECA 462 (22nd March, 1996)

ESB/RECI [1996] IECA 462 (22nd March, 1996)

The notified agreement between ESB and RECI, as originally constituted, offended Section 4(1) of the Competition Act, 1991 by placing non-registered contractors at a competitive disadvantage through restrictive membership criteria, arbitrary admission processes, and additional costs. However, subsequent amendments to RECI's rules and procedures removed the anti-competitive barriers, making the arrangements licensable under Section 4(2) as they promoted safety standards, allowed for alternative certifying bodies, and did not eliminate competition.

Citation
[1996] IECA 462
Parties
Notifying Party/respondent: Electricity Supply Board (ESB); Notifying Party/respondent: Register of Electrical Contractors of Ireland Limited (RECI); Objector/third Party: Association of South Western Electrical Contractors (ASWEC); Objector/third Party: Western Electrical Association; Objector/third Party: Electrical Consumer Complainants
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Notification and Licence Application Under Section 4 of the Competition Act, 1991
Outcome
Licence granted (as amended)
Legal Topics
Anti Competitive Agreements, Abuse of Dominant Position, Certification and Regulation of Trades, Barriers to Market Entry, Licensing Under Competition Act
Competition Law Anti Competitive Agreements Abuse of Dominant Position Certification and Regulation of Trades Barriers to Market Entry Licensing Under Competition Act

Case Brief

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Parties

Electricity Supply Board (ESB)

Notifying Party/respondent

Register of Electrical Contractors of Ireland Limited (RECI)

Notifying Party/respondent

Association of South Western Electrical Contractors (ASWEC)

Objector/third Party

Western Electrical Association

Objector/third Party

Electrical Consumer Complainants

Objector/third Party

Procedural Posture

Competition Authority Decision / Final Decision on Notification and Licence Application Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the agreement between ESB and RECI restricting connection to the electricity grid to installations certified by RECI is anti-competitive under Section 4(1) of the Competition Act, 1991
  2. 2 Whether the membership rules and practices of RECI constitute unjustifiable barriers to entry and restrict competition
  3. 3 Whether the arrangements as amended qualify for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The notified agreement between ESB and RECI, as originally constituted, offended Section 4(1) of the Competition Act, 1991 by placing non-registered contractors at a competitive disadvantage through restrictive membership criteria, arbitrary admission processes, and additional costs. However, subsequent amendments to RECI's rules and procedures removed the anti-competitive barriers, making the arrangements licensable under Section 4(2) as they promoted safety standards, allowed for alternative certifying bodies, and did not eliminate competition.

Court Disposition

Licence granted (as amended)

Orders

  • The notified agreement between ESB and RECI is licensable under Section 4(2) of the Competition Act, 1991, subject to the amendments to RECI's rules removing anti-competitive barriers.