The first criminal charges in relation to alleged breaches in competition law are to be brought against a number of oil delivery firms and individuals suspected of fixing the price of home heating oil in the west of Ireland.
The charges follow a four-year investigation by gardaí and staff of the Competition Authority into the suspected operation of a cartel in which various firms came together to fix the price of home heating oil.
The Irish Times has learned that, arising out of the investigation, a number of individuals are to appear at Loughrea District Court on Wednesday morning, where they will be charged with breaches of competition legislation. The case will be the first of a number which will take place in various courts in the west of Ireland after the Director of Public Prosecutions decided to charge up to 20 individuals.
The investigation is one of the largest ever into a suspected breach of competition law, and began in 2000 after the Competition Authority received specific allegations that a cartel was operating in the west of Ireland among some oil companies.
The authority received information that representatives of some firms operating in Mayo and Galway held regular meetings at which they agreed on a price at which they would all sell home heating oil. In 2002 the Competition Authority confirmed it had carried out a series of raids on various oil firms in Mayo and Galway.
It is believed the authority sent a file on its investigation to the Director of Public Prosecutions last year. The prosecutions will be the first to be taken on indictment in relation to alleged breaches of competition law in Ireland.
Under competition law, it is illegal for firms who compete against each other in the same market to fix price levels between them for their goods.
Previously the only prosecutions in relation to competition law breaches has been on a summary basis where the Competition Authority itself brings a prosecution to the District Court, where the maximum fine is €3,000, with a maximum jail term of six months.
Prosecutions on indictment, brought to the Circuit Court, involve stiffer penalties. An individual convicted of an offence can be jailed for up to five years. Courts can also impose fines of up to €4 million or 10 per cent of a company's turnover following conviction.