This article considers two major issues. First, what is strategic behaviour by firms and what incentives do firms have for engaging in such behaviour with respect to the Irish Competition Authority (“the Authority”)? Second, since firms are an important source of information about breaches of competition law, how should the Authority encourage such pro–competitive complaints, while, at the same time, discouraging anti–competitive complaints from firms that reflect the normal workings of the market? These questions were examined by a review of complaints received by the Authority between 2002 and 2006. Anti–competitive complaints are primarily concerned with firms that are disadvantaged in the competitive process. They have an incentive to appeal to the Authority to intervene on their behalf to provide some sort of insurance against market forces. However, the role of the Authority is to promote consumer, not producer, welfare. Pro–competitive strategic behaviour is made by firms that want to promote change, entry and innovation. However, incumbent suppliers wish to preserve their market power and in the process may breach competition law. The article discusses various ways in which the Authority encourages more pro– and less anti– competitive complaints.
World Competition