The High Court has decided that the Irish League of Credit Unions has abused its dominant position in the market for credit union representation services.
In a 170-page decision handed down today, Mr Justice Nicholas Kearns upheld proceedings taken against the League by the Competition Authority.
The judge also found that certain rules of the League are anti-competitive in their effect.
During the 11-day case, the Competition Authority argued that the League of Credit Unions had breached the Competition Act by requiring credit unions to be members of the League before they could avail of its Savings and Protection Scheme, or SPS.
This scheme provides compensation to members when a credit union experiences financial difficulties.
The Authority claimed that by requiring its members to take out a loan protection and savings cover with a company the League itself controlled, it was abusing its dominant position in the market for credit union representation.
The Irish League of Credit Unions has 540 members in Ireland, north and south, and assets of more than €9bn.
The Competition Authority began court proceedings last year when the League threatened to disaffiliate several member unions which refused to take out savings cover through its company.
Some of the unions became members of the Credit Union Development Alliance.
Today's detailed High Court decision is expected to have implications for credit unions north and south.
The decision was notified, as required by law, to the European Commission.
Mr Justice Kearns said that the tying of access to the Savings and Protection Scheme to membership of the League is pernicious.
The issue of costs and the final court order have been adjourned for three weeks.
But the court is expected to injunct the League of Credit Unions from disaffiliating credit unions because they have sought loan protection cover other than through the League system.
