Exclusive Distribution Category Licence Agreements [1993] IECA 144 (5th November, 1993)

Exclusive Distribution Category Licence Agreements [1993] IECA 144 (5th November, 1993)

Exclusive distribution agreements, while restrictive of competition and thus offending Section 4(1), generally satisfy the conditions for a category licence under Section 4(2) if they do not impose unnecessary restrictions, do not eliminate competition, and do not provide absolute territorial protection or resale price maintenance. The Authority grants a category licence subject to specified conditions and duration.

Citation
[1993] IECA 144
Parties
Decision Maker: Competition Authority
Jurisdiction
Ireland
Procedural Posture
Administrative Decision / Final Decision
Outcome
Category licence granted to specified exclusive distribution agreements, subject to conditions and a five-year duration.
Legal Topics
Exclusive Distribution Agreements, Category Licence, Anti Competitive Agreements, Block Exemption, Market Restriction, Resale Price Maintenance
Competition Law Commercial Law Exclusive Distribution Agreements Category Licence Anti Competitive Agreements Block Exemption Market Restriction Resale Price Maintenance

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Parties

Competition Authority

Decision Maker

Procedural Posture

Administrative Decision / Final Decision

Legal Issues

  1. 1 Whether exclusive distribution agreements offend Section 4(1) of the Competition Act, 1991
  2. 2 Whether such agreements qualify for a category licence under Section 4(2)
  3. 3 What restrictions are permissible under a category licence

Ratio Decidendi

Exclusive distribution agreements, while restrictive of competition and thus offending Section 4(1), generally satisfy the conditions for a category licence under Section 4(2) if they do not impose unnecessary restrictions, do not eliminate competition, and do not provide absolute territorial protection or resale price maintenance. The Authority grants a category licence subject to specified conditions and duration.

Court Disposition

Category licence granted to specified exclusive distribution agreements, subject to conditions and a five-year duration.

Orders

  • Category licence enters into force on 5 November 1993 and expires on 31 December 1998.
  • Agreements must comply with the terms of the licence to benefit from it.