Signing of Competition Act abolishes Groceries Order
The Minister for Enterprise, Trade and Employment has signed the new Competition Act into law.
It will take effect from tomorrow and finally abolish the controversial Groceries Order.
Minister Micheal Martin says the single most important reason for scrapping the Groceries Order is that it has kept prices at an artificially high level for the past 18 years.
The new Competition Act will outlaw the fixing of minimum retail prices by suppliers, unfair discrimination in the grocery trade and the payment of advertising allowances and so-called "hello money".
The Competition Authority and the Director of Consumer Affairs are being asked to monitor the industry's response to the changes in the law.
It is expected that major retailers like Tesco and Dunnes will embark on a price war, passing on discounts they receive for buying in bulk , to customers.
However, smaller shops are worried the changes could squeeze them out of the market.
