Estuary Dist Agr (Debenture) Licence (Guarantee & Indemnity) [1994] IECA 334 (10th June, 1994)

Estuary Dist Agr (Debenture) Licence (Guarantee & Indemnity) [1994] IECA 334 (10th June, 1994)

The notified agreements offend Section 4(1) because they underpin exclusive distribution arrangements that restrict competition, but satisfy Section 4(2) as they meet the conditions for improving distribution and do not eliminate competition, warranting the grant of licences.

Citation
[1994] IECA 334
Parties
Supplier: Estuary Fuel Limited; Distributors: Exclusive distributors of Estuary Fuel Limited; Guarantors: Owners of a distribution company
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Licence Issuance
Outcome
Licences granted for both agreements under Section 4(2) of the Competition Act, 1991.
Legal Topics
Exclusive Distribution Agreements, Debenture Agreements, Guarantee and Indemnity Agreements, Licensing Under Competition Act
Competition Law Exclusive Distribution Agreements Debenture Agreements Guarantee and Indemnity Agreements Licensing Under Competition Act

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Parties

Estuary Fuel Limited

Supplier

Exclusive distributors of Estuary Fuel Limited

Distributors

Owners of a distribution company

Guarantors

Procedural Posture

Competition Authority Decision / Final Decision on Licence Issuance

Legal Issues

  1. 1 Whether the notified agreements offend Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreements satisfy the conditions for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The notified agreements offend Section 4(1) because they underpin exclusive distribution arrangements that restrict competition, but satisfy Section 4(2) as they meet the conditions for improving distribution and do not eliminate competition, warranting the grant of licences.

Court Disposition

Licences granted for both agreements under Section 4(2) of the Competition Act, 1991.

Orders

  • Licence issued for Distributor Agreement (Debenture) CA/633/92E, effective 10 June 1994 to 31 December 1998.
  • Licence issued for Distributor Agreement (Guarantee and Indemnity) CA/635/92E, effective 10 June 1994 to 31 December 1998.