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A SUGAR importer has taken a High Court action for damages against Greencore arising out of a European Commission decision it had abused its dominant market position during the 1980s and 1990s.
ASI Sugar Ltd, Carriglea Industrial Estate, Naas Road, Dublin, is seeking damages against Greencore Group, Irish Sugar and Sugar Distributors Ltd for the loss of profits it claims it suffered as a result of certain practices during the 1990s.
ASI is taking the proceedings due to what it says was Greencore's abuse of its dominant position in the granulated sugar market for retail and industrial sale in Ireland, their infringement of competition law, the EU treaty and for breaches of their statutory duty.
The defendants deny the claims. The case, which opened before Mr Justice Liam McKechnie yesterday, is expected to last for several weeks.
James O'Reilly counsel for ASI, told the court this "unique action" was a follow-on to the EU commission's 1997 finding that Irish Sugar, which had a 90pc share of the Irish market, had abused its position by engaging in practices such as selective pricing, export rebates, price discrimination against competing sugar packers, target rebates and selective pricing for industrial sugar.
Breaches
Mr O'Reilly said all but one of the breaches were upheld by the European Courts of Justice, which ruled on the matter in 2001. The company was fined about €7m by the European Commission — the penalty reduced after an appeal.
As a result of the abuses, ASI were prevented from fully participating in the granulated sugar market for industrial sale in Ireland, and suffered enormous loss.
Counsel also claimed that so adverse were the consequences of the defendant's "unlawful market strategies", ASI was driven out of the Irish retail sugar market in July 1994.
He said in 1990 the company attempted to secure a presence in the Irish market with sugar sourced in France. That entry, it was claimed was met, with a "sustained and hostile" response from the defendants.
ASI had hoped to obtain a market share of 10pc in 1991, rising up to 30pc in the following years. However, it claimed that due to the actions of the defendants, it only obtained a market share of 2pc in 1991 which by 1997 had never been higher than 3pc. After the 1997 decision, counsel said that ASI's market share rose, and by 2001 was 11.5pc.
Mr O'Reilly said in April-May 2000, the defendants targeted industrial customers of ASI, namely Ferrero and UDV, the makers of Baileys Irish Cream products, in a manner which was prohibited.