Two of the Republic's main newspaper groups have assured the Competition Authority that retailers can set their own prices when selling their newspapers. Jamie Smyth reports.

The Competition Authority had been investigating allegations that The Irish Times and Independent News & Media were enforcing "resale price maintenance" by telling retailers that they could not offer discounts on sales of their own newspapers.

In a decision published at the weekend, the Competition Authority said it had discontinued the investigations into the newspapers for as long as both firms were in compliance with assurances they had made to it.

Both The Irish Times and Independent News & Media deny the allegations, which were originally brought to the attention of the Competition Authority by a Government department.

Both newspaper companies have given undertakings to the Competition Authority that they will implement certain measures to ensure that retailers are aware that they can set their own prices for the firm's newspapers.

Mr Liam Kavanagh, finance director of The Irish Times, said the company had fully cooperated with the Competition Authority and had implemented all the recommendations that it had asked the firm to do.

A spokesman for Independent News & Media said in a statement: "Following the investigation by the Competition Authority and perceptions that the retail price of certain newspapers were fixed, Independent Newspapers is cooperating fully with the authority to ensure that all retailers are aware that they are (and have been) free to set their own price."