A number of car dealers may face prosecution for price-fixing following an investigation by the Competition Authority and the Garda Bureau of Fraud Investigation (GBFI), writes Colm Keena.
A file is being prepared for the Director of Public Prosecutions in relation to a possible cartel operation or operations.
Seventeen raids were carried out last November and December. As well as car dealerships a raid has also been carried out on the home of a man who acts as secretary to a number of car dealers' associations, including the Citroen Car Dealers Association.
It is understood the inquiry includes an investigation into the possibility that a secret monitoring system has been established to check on the prices dealers are charging.
A spokesman for the Competition Authority confirmed that in co-operation with the Garda fraud bureau, it had conducted searches related to the motor vehicle industry. "These relate to possible breaches of the Competition Act 2002. A file is being prepared for the DPP, " he said. A spokeswoman for the Garda fraud bureau said there would be no comment.
It is legal for recommended retail prices to be agreed for goods but it is illegal for individual retailers to be prohibited by contract or agreement from selling below that price.
Dealers whose premises were raided and who spoke to The Irish Times said there was no price cartel in operation.
An evening raid was carried out on the Templeogue, Dublin, home of Mr John McGlynn, a retired car sector worker who acts as a consultant to a number of car dealer associations. He works from home and Competition Authority officials along with members of the Garda fraud bureau took away papers and a computer. He was away at the time and his wife was in the house alone, he said. "They literally pulled out every drawer and cabinet in the house," Mr McGlynn said. He said that when he arrived home he was cautioned before being questioned. He added that he had "nothing to hide".
Documents relating to his work for the Citroen Car Dealers' Association were taken from his home as were other documents linked to his work for dealers in Mitsubishi, Volvo and Hyundai.
Mr McGlynn said there was absolutely no involvement by any association in any alleged price-fixing.
A number of Citroen car dealers are known to have been raided in the weeks before Christmas as part of the inquiry. They included the Lusk Motor Group, Lusk, Co Dublin; the Rochestown Auto Centre, Rochestown, Co Cork; and Jack Doran Motors, Drogheda, Co Louth. Spokesmen for all three outlets said they knew of no anti-competitive practices.