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Sentencing in Ireland's First Bid-Rigging Cartel Case: An Appraisal

Author

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  • Gorecki, Paul

Abstract

The paper argues that the sentences imposed on 31 May 2107 by the Central Criminal Court in the commercial flooring bid-rigging cartel case and the methodology used in setting those sentences seriously undermines the effective enforcement of competition law in Ireland. The sentence imposed on the individual responsible for initiating and participating for 2 years and 4 months in the bid-rigging cartel was only three weeks wages or €7,500. No gaol sentence was imposed. The undertaking was fined €10,000; the value of the rigged tenders it won totalled €556,000. The Court’s reasoning did not justify the low sanctions. Current sentencing norms indicate a custodial sentence and much higher fines for both the individual and the undertaking. This is consistent with the application of EU and US Sentencing Guidelines to the facts of the commercial flooring bid-rigging cartel case. If the sentences imposed by the Central Criminal Court are not successfully appealed as being unduly lenient and appropriate sentencing guidelines developed, then the prospect for competition law enforcement in Ireland is grim. In particular, the effectiveness of the Cartel Immunity Programme, a vital tool for cartel detection and prosecution, will be severely damaged.

Suggested Citation

  • Gorecki, Paul, 2017. "Sentencing in Ireland's First Bid-Rigging Cartel Case: An Appraisal," MPRA Paper 80787, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80787
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    File URL: https://mpra.ub.uni-muenchen.de/80787/1/MPRA_paper_80787.pdf
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    References listed on IDEAS

    as
    1. Martin, Stephen, 2010. "Industrial Organization in Context," OUP Catalogue, Oxford University Press, number 9780199291199.
    2. Gorecki, Paul K. & Maxwell, Sarah, 2012. "Sentencing in Criminal Cartel Cases in Ireland: the Duffy Judgment," Papers WP443, Economic and Social Research Institute (ESRI).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gorecki, Paul, 2018. "A Recent Development in Civil Enforcement of Competition Law in Ireland: Section 14B Court Orders," MPRA Paper 89657, University Library of Munich, Germany.
    2. Thomas Wein, 2020. "Cartel behavior and efficient sanctioning by criminal sentences," Working Paper Series in Economics 390, University of Lüneburg, Institute of Economics.
    3. Gorecki, Paul, 2018. "Cartel Sentencing in Ireland: Criminal Standards of Proof, But Civil Sanctions," MPRA Paper 89817, University Library of Munich, Germany.
    4. Gorecki, Paul, 2019. "Reforming the Regulation of Household Waste Collection Services in Ireland: the Competition and Consumer Protection Commission Study," MPRA Paper 95000, University Library of Munich, Germany.

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    More about this item

    Keywords

    Bid-rigging cartel; commercial flooring; Competition Act 2002; unduly lenient; sentencing competition law; cartels.;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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