Motor dealership faces Citröen price fixing charges

A Dublin motor dealership is facing criminal charges for fixing the price of Citroën cars after a long-running Competition Authority…

A Dublin motor dealership is facing criminal charges for fixing the price of Citroën cars after a long-running Competition Authority investigation into an alleged cartel.

In an action brought by the Director of Public Prosecutions, Bursey Peppard Ltd of St Agnes Road, in Crumlin, west Dublin, faces four separate charges in relation to its alleged activities in a period spanning more than eight years.

The Competition Authority has indicated that it expects further charges to be brought against other Citroën dealerships and individuals.

Bursey Peppard is the first dealership to be prosecuted on foot of the investigation, although a man was brought before the courts last June on charges of aiding and abetting the fixing of selling prices of Citroën cars.

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The trial of John McGlynn -- a retired car sector worker of Templeogue, Dublin -- is scheduled to begin in the Central Criminal Court on March 3rd.

Mr McGlynn, who has acted as a consultant to a number a car dealer associations, is accused of aiding and abetting members of the Citroën Dealers' Association to distort competition.

He has previously denied any involvement in price-fixing.

At Dublin District Court yesterday, Judge Lindsay adjourned the Bursey Peppard case until February 18th to allow the Director of Public Prosecutions prepare a book of evidence.

The managing director of Bursey Peppard is Naas-based businessman.

He is also the principal shareholder in the company, established in 1986, which is one of the longest-serving Citroën dealerships in Ireland.

The company faces a charge under the 1991 Competition Act of agreeing to fix prices and a another charge of implementing a price-fixing agreement between July 8th, 1996, and June 30th, 2002.

Under the 2002 Competition Act, the company faces a charge of agreeing to fix prices and a charge of implementing a price-fixing agreement in the period from July 1st, 2002, and September 13th, 2003.

Penalties under the 2002 Act include a fine of up to €4 million or 10 per cent of turnover, whichever is the greater, and imprisonment for up to five years. Such penalties are much greater those under 1991 Act.

In a separate last year, retired Cork businessman Denis Manning received a 12-month suspended sentence and a €30,000 fine for assisting Ford dealers operate a price-fixing cartel.

Manning admitted a single charge of aiding and abetting the Irish Ford Dealers Association and its members in implementing an agreement aimed at preventing, restricting or distorting competition in the trade so as to fix the selling price of cars between July 2002 and June 2003.

The Competition Authority had seized documents and statements from Manning and a number of Ford dealers which confirmed the existence of a price-fixing agreement, which was euphemistically called a "programme for profitability".

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times