The Eurocheque Committee [1995] IECA 448 (15th December, 1995)

The Eurocheque Committee [1995] IECA 448 (15th December, 1995)

The Eurocheque Committee arrangements constitute an agreement between undertakings and a decision by an association of undertakings. The setting of commission rates amounts to price-fixing and restricts competition, thus offending Section 4(1). However, the arrangements satisfy the requirements for a licence under Section 4(2) as they improve service provision, are indispensable for the functioning of the system, and do not eliminate competition in a substantial part of the market. Therefore, a licence is granted for 10 years.

Citation
[1995] IECA 448
Parties
Notifying Party: Allied Irish Banks plc; Notifying Party: The Governor and Company of the Bank of Ireland; Notifying Party: National Irish Bank Ltd.; Notifying Party: Ulster Bank Ltd.; Notifying Party: Eurocheque Committee; Related Entity: Eurocheque Ireland Ltd.
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification and Decision / Final Decision and Licence Grant
Outcome
Licence granted for 10 years
Legal Topics
Anti Competitive Agreements, Price Fixing, Cheque Guarantee Schemes, Banking Services, Market Entry Barriers
Competition Law Anti Competitive Agreements Price Fixing Cheque Guarantee Schemes Banking Services Market Entry Barriers

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Parties

Allied Irish Banks plc

Notifying Party

The Governor and Company of the Bank of Ireland

Notifying Party

National Irish Bank Ltd.

Notifying Party

Ulster Bank Ltd.

Notifying Party

Eurocheque Committee

Notifying Party

Eurocheque Ireland Ltd.

Related Entity

Procedural Posture

Competition Authority Notification and Decision / Final Decision and Licence Grant

Legal Issues

  1. 1 Whether the Eurocheque Committee arrangements constitute anti-competitive agreements under Section 4(1) of the Competition Act, 1991
  2. 2 Whether the arrangements qualify for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The Eurocheque Committee arrangements constitute an agreement between undertakings and a decision by an association of undertakings. The setting of commission rates amounts to price-fixing and restricts competition, thus offending Section 4(1). However, the arrangements satisfy the requirements for a licence under Section 4(2) as they improve service provision, are indispensable for the functioning of the system, and do not eliminate competition in a substantial part of the market. Therefore, a licence is granted for 10 years.

Court Disposition

Licence granted for 10 years

Orders

  • Licence granted to the Rules of the Republic of Ireland Uniform Eurocheque Community (CA/123/92E) from 15 December 1995 to 14 December 2005.