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LVA and VFI announce end to 'Price Freeze' with immediate effect
29-July-2009
The price freeze involved a recommendation by each association to its members not to exceed existing price levels for a period of one year from 1 December 2008. Participating members remained free to compete at prices below their individual price ceilings.
Following correspondence with both associations, the Competition Authority commenced proceedings against the two associations in April 2009 for contempt of Court. The Competition Authority alleged that the ‘price freeze' constituted a breach, by each association, of undertakings given pursuant to the terms of settlement of previous proceedings which had been settled in 2003 and 2005 respectively. Those settlement terms are the subject of a Court Order in respect of each association.
At the request of the Competition Authority, the issue to be determined by the High Court was whether the price freeze was in breach of one of the undertakings referred to above, relating to price recommendations. The High Court has found as a matter of construction that the price freeze was in contravention of that undertaking.
The associations fully accept and respect the ruling of the Court in respect of the interpretation of the undertaking. Accordingly, the associations have today communicated to their members that the recommendation to implement the price freeze is withdrawn with immediate effect, and have requested their members to immediately remove all posters and publicity materials advertising the price freeze from public display and circulation.
VFI Suppliers
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