Bewley's Coffee Machines 2 [1996] IECA 473 (12th December, 1996)

Bewley's Coffee Machines 2 [1996] IECA 473 (12th December, 1996)

The exclusivity requirement that only Bewleys coffee be used in Bewleys machines is not anti-competitive as it protects the supplier's reputation and property, does not prevent customers from serving other brands, and customers can terminate the agreement at any time. The minimum purchase requirement is not prohibitive and does not foreclose the market. Therefore, the agreement does not offend Section 4(1) of the Competition Act, 1991.

Citation
[1996] IECA 473
Parties
Notifying Party: Bewleys Coffee Ltd; Decision Maker: Competition Authority; Counterparty: Catering industry customers (cafes, hotels, pubs, restaurants, offices, shops)
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Certificate Under Section 4 of the Competition Act, 1991
Outcome
Certificate granted; agreement does not offend Section 4(1) of the Competition Act, 1991.
Legal Topics
Exclusive Dealing, Standard Loan Agreements, Market Foreclosure, Minimum Purchase Requirements, Section 4 Competition Act 1991
Competition Law Exclusive Dealing Standard Loan Agreements Market Foreclosure Minimum Purchase Requirements Section 4 Competition Act 1991

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Parties

Bewleys Coffee Ltd

Notifying Party

Competition Authority

Decision Maker

Catering industry customers (cafes, hotels, pubs, restaurants, offices, shops)

Counterparty

Procedural Posture

Competition Authority Notification / Decision on Certificate Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the standard coffee machine loan agreement between Bewleys Coffee Ltd and catering customers constitutes a prohibited agreement under Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The exclusivity requirement that only Bewleys coffee be used in Bewleys machines is not anti-competitive as it protects the supplier's reputation and property, does not prevent customers from serving other brands, and customers can terminate the agreement at any time. The minimum purchase requirement is not prohibitive and does not foreclose the market. Therefore, the agreement does not offend Section 4(1) of the Competition Act, 1991.

Court Disposition

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

Orders

  • The Competition Authority certifies that the coffee machine loan agreement between Bewleys Coffee Ltd and its catering customers does not offend Section 4(1) of the Competition Act, 1991.