Moulinex S.A./ Glen Dimplex/ Irish Sugar plc [1999] IECA 556 (27th May, 1999)

Moulinex S.A./ Glen Dimplex/ Irish Sugar plc [1999] IECA 556 (27th May, 1999)

The agreement does not contravene Section 4(1) of the Competition Act, 1991, because GMX functions primarily as an intermediate input producer for Moulinex, with most products not competing with Glen Dimplex, and the market for finished goods is highly competitive with minimal barriers to entry. The minority shareholdings and lack of independent sales/marketing by GMX do not give rise to a restriction of competition.

Citation
[1999] IECA 556
Parties
Notifying Party: Moulinex S.A.; Notifying Party: Glen Dimplex; Notifying Party: Irish Sugar plc
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Certificate Under Section 4 of the Competition Act, 1991
Outcome
Certificate granted; agreement does not contravene Section 4(1) of the Competition Act, 1991.
Legal Topics
Joint Venture Agreements, Market Restriction, Section 4 Competition Act 1991, Certificate of Non Infringement
Competition Law Joint Venture Agreements Market Restriction Section 4 Competition Act 1991 Certificate of Non Infringement

Case Brief

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Parties

Moulinex S.A.

Notifying Party

Glen Dimplex

Notifying Party

Irish Sugar plc

Notifying Party

Procedural Posture

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

Legal Issues

  1. 1 Whether the joint venture agreement between Moulinex S.A., Glen Dimplex, and Irish Sugar plc contravenes Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The agreement does not contravene Section 4(1) of the Competition Act, 1991, because GMX functions primarily as an intermediate input producer for Moulinex, with most products not competing with Glen Dimplex, and the market for finished goods is highly competitive with minimal barriers to entry. The minority shareholdings and lack of independent sales/marketing by GMX do not give rise to a restriction of competition.

Court Disposition

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

Orders

  • Certificate issued stating the agreement dated 20 June 1989 does not contravene Section 4(1) of the Competition Act, 1991.