Burmah Castrol/Licence Distributor (Loan Equipment) [1994] IECA 322 (21st April, 1994)

Burmah Castrol/Licence Distributor (Loan Equipment) [1994] IECA 322 (21st April, 1994)

The notified loan equipment agreement, while offending Section 4(1) as it underpins an exclusive distribution arrangement, satisfies the conditions for a licence under Section 4(2) as it contributes to distribution efficiency and does not eliminate competition or impose unnecessary terms.

Citation
[1994] IECA 322
Parties
Notifier: Burmah Castrol (Ireland) Limited; Counterparty: Distributors of Burmah Castrol (Ireland) Limited
Jurisdiction
Ireland
Procedural Posture
Competition Notification/decision / Decision on Notification for Certificate or Licence
Outcome
Licence granted for notified agreement
Legal Topics
Exclusive Distribution Agreements, Loan Equipment Agreements, Section 4 Competition Act 1991, Licensing of Anti Competitive Agreements
Competition Law Exclusive Distribution Agreements Loan Equipment Agreements Section 4 Competition Act 1991 Licensing of Anti Competitive Agreements

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Parties

Burmah Castrol (Ireland) Limited

Notifier

Distributors of Burmah Castrol (Ireland) Limited

Counterparty

Procedural Posture

Competition Notification/decision / Decision on Notification for Certificate or Licence

Legal Issues

  1. 1 Whether the loan equipment agreement constitutes an anti-competitive agreement under Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement qualifies for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The notified loan equipment agreement, while offending Section 4(1) as it underpins an exclusive distribution arrangement, satisfies the conditions for a licence under Section 4(2) as it contributes to distribution efficiency and does not eliminate competition or impose unnecessary terms.

Court Disposition

Licence granted for notified agreement

Orders

  • Section 4(1) of the Competition Act, 1991 declared inapplicable to the loan equipment agreement between Burmah Castrol (Ireland) Limited and its distributors (notification no. CA/901/92)
  • Licence effective from 21 April 1994 to 31 December 1998