Brian McHugh

The watchdog’s State of Competition in Ireland reports, published today, examine the evolution of competition within Ireland’s non-financial services sector over a 15-year period.

According to the initial report, concentration and average markups have risen in Ireland across multiple industries within the services sector, particularly since 2016, meaning that certain industries have businesses holding increased market power.

As of 2022, the top four businesses have an average market share of 37 per cent, up 12 percentage points since 2008. 

This trend is most pronounced in more digitally intensive industries such as information and communications (for example, ICT services) and professional, scientific and technical services (such as accounting and legal services), where a small number of businesses now account for a larger share of turnover.

Some of the results showed positive trends with younger businesses having a dynamic impact with a rising share in turnover and productivity improvements.

In addition to an analysis of Ireland’s non-financial services sector, the CCPC has also released reports on barriers to entry and barriers to expansion to further examine factors that may influence concentration and wider business dynamism.

These reports highlight barriers to entry and expansion for businesses, including raising sufficient capital, regulatory burdens and legal costs.

Brian McHugh, chair of the CCPC, said: “Competitive markets are vital for a healthy economy. Our initial findings show an increase in concentration and average markups, meaning the promotion of strong competition has never been more important. 

“The report acts as a warning about weakening competition in some sectors. In the CCPC, we will use the findings of this report to help us focus our activities on areas where increased competition can have the biggest impact.”