CCPC secures commitments from technological universities in relation to the supply of graduation gowns
February 2, 2024
The Competition and Consumer Protection Commission (CCPC) has secured commitments from a number of Irish technological universities to change their procurement practices in the supply of graduation gowns.
Background
In October 2022, the CCPC received a complaint alleging possible anti-competitive conduct by Atlantic Technological University Donegal (ATU Donegal), formerly Letterkenny Institute of Technology. ATU Donegal is now part of the multi-campus Atlantic Technological University (ATU), which was formed in April 2022 as an amalgamation of institutes of technology located in Donegal, Sligo, Mayo and Galway. The complaint alleged that ATU Donegal had led graduands (i.e. those preparing for graduation) to believe that they should source graduation gowns from only one supplier. The complainant expressed their view that the institution’s communications were anti-competitive in nature.
Previous CCPC activity on this issue
Under competition law, a single firm being dominant in a particular market is not illegal, however consumers lose out when a dominant firm does not face competition from other rivals as there is less incentive to lower prices and to innovate.
Universities run public tender competitions to choose a gown supplier who provides the appropriate gown in accordance with the institution’s requirements. However, as there are very few suppliers operating in the Irish market, concerns were expressed in recent years that a small number of companies were frequently appointed by universities for repeat, long-running contracts.
In 2017, the CCPC engaged with the main third-level colleges (National University of Ireland, Trinity College Dublin, Dublin City University, and the University of Limerick) regarding measures to ensure that suppliers of graduation gowns and graduation photography services compete effectively in this market. In 2017, commitments were given by the National University of Ireland, Trinity College Dublin, Dublin City University and the University of Limerick to put measures in place to facilitate more competition and ensure increased transparency in the supply of gowns and graduation photography. The CCPC did not engage with Letterkenny Institute of Technology (now ATU Donegal) in 2017 and they did not give any commitments at that time.
Outcome of complaint against ATU Donegal
The CCPC’s review of the complaint in 2023 found there was no contravention of competition law by ATU Donegal or any of the other ATU campuses. The CCPC engaged with the amalgamated ATU which voluntarily agreed to adhere to the same set of commitments as other third-level colleges signed up to in 2017.
New commitments from technological universities
In order to broaden compliance and encourage best practice, the CCPC also proactively engaged in 2023 with the other recently established technological universities and, during the year, obtained similar voluntary commitments from them all, specifically Technological University Dublin, Technological University of the Shannon, South East Technological University and Munster Technological University.
The commitments require technological universities to:
- Reduce the length of supply contracts to no more than two years, with a potential one-year extension, for the on-campus supply and fitting of graduation gowns.
- Allow for the decoupling of photography and gown supply contracts.
- State clearly on the university’s website that students may source gowns from other suppliers.
These commitments will facilitate competition and ensure increased transparency in the supply of graduation gowns.
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