Investigation into Drogheda Independent advertising
December 7, 2005
Outcome of investigation
Following an investigation into alleged below cost selling of advertising space by the Drogheda Independent Company Limited (“the Drogheda Independent”), the Competition Authority (“the Authority”) formed the view that the Drogheda Independent was not dominant in the market for advertising in local newspapers in the greater Drogheda area and that the alleged conduct could not constitute an abuse. The investigation was therefore closed.
Outline of case
The Authority’s investigation was initiated following a complaint from the publisher of the Drogheda Leader alleging that the Drogheda Independent was abusing a dominant position by:
- launching the Drogheda Independent Weekend Extra in 1997
- selectively discounting the price of advertising in the Weekend Extra during January and February 2003
- selling advertising below cost since 1997
The Authority rejected the first two allegations made by the complainant, as the Drogheda Independent’s actions could not plausibly be considered as predation and because the theory of predation did not tie-in with the market facts. The investigation therefore only dealt in detail with the allegation of below cost selling of advertising space by Drogheda Independent.
Following its investigation, the Authority formed the view that the Drogheda Independent was not dominant in the market for advertising in local newspapers in the greater Drogheda area and that the alleged conduct could not therefore constitute an abuse. The alleged conduct was arguably pro-consumer, and more indicative of intense competition in the market than predatory conduct by a dominant undertaking. The Authority therefore took the view that the alleged below cost selling of advertising space by the Drogheda Independent did not breach competition law. The investigation was therefore closed.
To learn more on this case read our Enforcement Decision on the alleged predation by the Drogheda Independent Company Limited in the market for advertising in local newspapers in the greater Drogheda area.
Relevant provision
Section 5 of the Competition Act 2002
Article 102 of the Treaty on the Functioning of the European Union
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