Gallaher / Ritmeester [1998] IECA 529 (15th December, 1998)

Gallaher / Ritmeester [1998] IECA 529 (15th December, 1998)

The exclusive distribution agreement between Gallaher and Ritmeester contravenes Section 4(1) of the Competition Act, 1991, as it restricts competition, but fulfills all conditions under Section 4(2) for a licence, including improvement of distribution, consumer benefit, indispensability of terms, and no elimination of competition in a substantial part of the market.

Citation
[1998] IECA 529
Parties
Exclusive Distributor: Gallaher (Dublin) Ltd.; Manufacturer: Ritmeester B.V.
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Notification for Certificate/licence Under Section 4 of the Competition Act, 1991
Outcome
Licence granted under Section 4(2) of the Competition Act, 1991
Legal Topics
Exclusive Distribution Agreements, Market Definition, Vertical Agreements, Licence Under Competition Act

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Parties

Gallaher (Dublin) Ltd.

Exclusive Distributor

Ritmeester B.V.

Manufacturer

Procedural Posture

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

  1. 1 Whether the exclusive distribution agreement between Gallaher and Ritmeester contravenes Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement qualifies for a certificate or licence under Section 4(2)

Ratio Decidendi

The exclusive distribution agreement between Gallaher and Ritmeester contravenes Section 4(1) of the Competition Act, 1991, as it restricts competition, but fulfills all conditions under Section 4(2) for a licence, including improvement of distribution, consumer benefit, indispensability of terms, and no elimination of competition in a substantial part of the market.

Court Disposition

Licence granted under Section 4(2) of the Competition Act, 1991

Orders

  • Licence applies from 15 December 1998 to December 2003