Adsites Ltd/David Allen Ltd [1994] IECA 381 (15th December, 1994)

Adsites Ltd/David Allen Ltd [1994] IECA 381 (15th December, 1994)

The Option Agreement increases DAH's share of the 48 sheet outdoor advertising market to 64%, resulting in a highly concentrated market and the elimination of a significant competitor, particularly in urban areas. There are significant barriers to entry, and the agreement restricts or distorts competition. The agreement does not satisfy the requirements for a licence under Section 4(2) as it does not contribute to improving production or economic progress, nor does it allow consumers a fair share of any benefit. Therefore, the agreement offends Section 4(1) and is not eligible for a certificate or licence.

Citation
[1994] IECA 381
Parties
Party: Adsites Limited; Party: David Allen Holdings Limited
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Notification for Certificate or Licence Under Section 4 of the Competition Act, 1991
Outcome
Refusal of certificate or licence under Section 4 of the Competition Act, 1991.
Legal Topics
Anti Competitive Agreements, Market Concentration, Outdoor Advertising Market, Option Agreements, Section 4 Competition Act 1991
Competition Law Anti Competitive Agreements Market Concentration Outdoor Advertising Market Option Agreements Section 4 Competition Act 1991

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Parties

Adsites Limited

Party

David Allen Holdings Limited

Party

Procedural Posture

Competition Authority Decision / Final Decision on Notification for Certificate or Licence Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the Option Agreement between DAH and Adsites offends Section 4(1) of the Competition Act, 1991 by preventing, restricting or distorting competition in the relevant market
  2. 2 Whether the agreement qualifies for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The Option Agreement increases DAH's share of the 48 sheet outdoor advertising market to 64%, resulting in a highly concentrated market and the elimination of a significant competitor, particularly in urban areas. There are significant barriers to entry, and the agreement restricts or distorts competition. The agreement does not satisfy the requirements for a licence under Section 4(2) as it does not contribute to improving production or economic progress, nor does it allow consumers a fair share of any benefit. Therefore, the agreement offends Section 4(1) and is not eligible for a certificate or licence.

Court Disposition

Refusal of certificate or licence under Section 4 of the Competition Act, 1991.

Orders

  • The Authority refuses to issue a certificate or grant a licence to the Option Agreement of 2 January 1992 between David Allen Holdings Limited and Adsites Limited (notification no. CA/1127/92).