Last week, the Irish Competition and Consumer Protection Commission (CCPC) approved the sale of Bord na Móna Recycling to KAES Recycling, contingent upon certain divestments to prevent market concentration. This decision follows a pattern of previous mergers in the waste sector, where similar divestments were required to maintain consumer choice.

The CCPC emphasizes that competition and consumer power rely on having multiple choices in the market. However, the domestic waste collection market is unique, as it may function more efficiently with a single provider, similar to utilities like gas and electricity. The authority argues that having multiple waste collection services in the same area can lead to inefficiencies.

Looking at practices in other European countries, the CCPC notes that many have adopted a more efficient waste collection structure, often involving state-led control or competitive tendering to ensure effective service delivery. This approach contrasts with the current Irish model, which has not adapted to ensure widespread coverage and affordability.

In 2018, the CCPC published a study recommending the establishment of an economic regulator to optimize the waste market structure in Ireland. Despite broad support for these recommendations, they remain unimplemented seven years later. The CCPC warns that the ongoing trend of mergers will exacerbate the existing market issues, necessitating regulatory reform.

While acknowledging the challenges of reform, the CCPC stresses that the current system is failing consumers and that a policy change is urgently needed. The authority stands ready to assist in this process, urging the government to take action.