Hampden / Allied Carpets [1999] IECA 561 (21st June, 1999)

Hampden / Allied Carpets [1999] IECA 561 (21st June, 1999)

The franchise agreement, as amended to limit the duration of the supplier negotiation restriction (Clause 5.14) to the term of the agreement only, does not have the object or effect of preventing, restricting, or distorting competition in the State and therefore does not contravene Section 4(1) of the Competition Act, 1991.

Citation
[1999] IECA 561
Parties
Franchisor: Allied Carpets Group Limited; Franchisee: Hampden Group Plc
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Decision on Notification for Certificate or Licence Under Section 4 of the Competition Act, 1991
Outcome
Certificate issued; agreement does not contravene Section 4(1) of the Competition Act, 1991 as amended.
Legal Topics
Franchise Agreements, Vertical Agreements, Non Compete Clauses, Section 4 Competition Act 1991
Competition Law Franchise Agreements Vertical Agreements Non Compete Clauses Section 4 Competition Act 1991

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Parties

Allied Carpets Group Limited

Franchisor

Hampden Group Plc

Franchisee

Procedural Posture

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

Legal Issues

  1. 1 Whether the franchise agreement between Allied Carpets Group Limited and Hampden Group Plc contravenes Section 4(1) of the Competition Act, 1991
  2. 2 Whether specific clauses (notably 5.14 and 5.20) restrict competition in contravention of the Act

Ratio Decidendi

The franchise agreement, as amended to limit the duration of the supplier negotiation restriction (Clause 5.14) to the term of the agreement only, does not have the object or effect of preventing, restricting, or distorting competition in the State and therefore does not contravene Section 4(1) of the Competition Act, 1991.

Court Disposition

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

Orders

  • Certificate granted that the franchise agreement, as amended, does not contravene Section 4(1) of the Competition Act, 1991.