Cadbury Ireland Sales Limited / Retailers / Standard Loan Agreement [2001] IECA 590 (25 June 2001)

Cadbury Ireland Sales Limited / Retailers / Standard Loan Agreement [2001] IECA 590 (25 June 2001)

The agreement does not have as its object or effect the prevention, restriction, or distortion of competition within the State or any part thereof, as the Cool Unit is not essential for sale, retailers are not compelled to rent, can terminate at any time, and competitors can respond with similar equipment. Thus, Section 4(1) is not contravened.

Citation
[2001] IECA 590
Parties
Notifying Party: Cadbury Ireland Sales Limited; Lessor: Cadbury Ireland Limited; Lessee: Individual retailers
Jurisdiction
Ireland
Judgment Date
25 June 2001
Procedural Posture
Competition Authority Notification Decision / Final Decision
Outcome
Certificate issued; agreement does not contravene Section 4(1) of the Competition Act 1991, as amended.
Legal Topics
Exclusive Agreements, Market Foreclosure, Non Price Competition, Section 4 Competition Act 1991
Competition Law Exclusive Agreements Market Foreclosure Non Price Competition Section 4 Competition Act 1991

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Parties

Cadbury Ireland Sales Limited

Notifying Party

Cadbury Ireland Limited

Lessor

Individual retailers

Lessee

Procedural Posture

Competition Authority Notification Decision / Final Decision

Legal Issues

  1. 1 Does the standard loan agreement for Cadbury Cool Display Unit contravene Section 4(1) of the Competition Act, 1991, as amended?
  2. 2 Does the exclusive use of the display unit restrict, prevent, or distort competition in the impulse confectionery market?

Ratio Decidendi

The agreement does not have as its object or effect the prevention, restriction, or distortion of competition within the State or any part thereof, as the Cool Unit is not essential for sale, retailers are not compelled to rent, can terminate at any time, and competitors can respond with similar equipment. Thus, Section 4(1) is not contravened.

Court Disposition

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

Orders

  • The Competition Authority certifies that the standard loan agreement for the Cadbury Cool Display Unit between Cadbury Ireland Limited and individual retail outlets notified on 17 July 2000 does not contravene Section 4(1) of the Competition Act 1991, as amended.