MBNA International Bank Ltd. (Credit Card Affinity Agreement). [1998] IECA 522 (19th November, 1998)

MBNA International Bank Ltd. (Credit Card Affinity Agreement). [1998] IECA 522 (19th November, 1998)

The Authority found that the exclusivity and related clauses in the Affinity Agreement are integral to the marketing arrangement, do not prevent, restrict or distort competition, and do not contravene Section 4(1) of the Competition Act, 1991. The market remains competitive and open to new entrants, and the agreement does not restrict the commercial freedom of the parties or consumers.

Citation
[1998] IECA 522
Parties
Notifying Party: MBNA International Bank Ltd.; Counterparty: Affinity Groups
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Request for Certificate Under Section 4(4) of the Competition Act, 1991
Outcome
Certificate granted; agreement does not contravene Section 4(1) of the Competition Act, 1991.
Legal Topics
Credit Card Affinity Agreements, Exclusive Marketing Arrangements, Market Entry Barriers, Section 4 Competition Act 1991
Competition Law Banking Law Credit Card Affinity Agreements Exclusive Marketing Arrangements Market Entry Barriers Section 4 Competition Act 1991

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Parties

MBNA International Bank Ltd.

Notifying Party

Affinity Groups

Counterparty

Procedural Posture

Competition Authority Notification / Decision on Request for Certificate Under Section 4(4) of the Competition Act, 1991

Legal Issues

  1. 1 Whether the Standard Credit Card Affinity Agreement contravenes Section 4(1) of the Competition Act, 1991 by preventing, restricting or distorting competition in the State.

Ratio Decidendi

The Authority found that the exclusivity and related clauses in the Affinity Agreement are integral to the marketing arrangement, do not prevent, restrict or distort competition, and do not contravene Section 4(1) of the Competition Act, 1991. The market remains competitive and open to new entrants, and the agreement does not restrict the commercial freedom of the parties or consumers.

Court Disposition

Certificate granted; agreement does not contravene Section 4(1) of the Competition Act, 1991.

Orders

  • The Competition Authority certifies that, in its opinion, the Affinity Agreement notified under Section 7 on 6 January 1998, does not contravene Section 4(1) of the Competition Act.