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Judge finds against publicans over freeze

Price freeze call - 'Breached previous court orders'
Price freeze call - 'Breached previous court orders'

The High Court has found the two main publicans' organisations to be in contempt of court because they recommended a price freeze to their members in breach of previous court orders.

The Competition Authority has welcomed the judgement, while the publicans said they were disappointed.

The Competition Authority had claimed that an announcement in December last by the Licensed Vintners' Association and the Vintners' Federation of Ireland of a one-year price freeze was in breach of previous undertakings given to the court in settlement proceedings over alleged drink price fixing.

The authority claimed a price freeze during a recession was likely to result in substantial harm to the consumer and breached the 2002 Competition Act. Both publican groups denied the claims.

In his ruling, Mr Justice Liam McKechnie found the publicans to be in contempt of court for recommending a price freeze to members because they were in breach of previous High Court orders. Mr Justice McKechnie has given both sides until next Wednesday to decide what action will be taken.