Ipodec Ordures Usines S.A./GKN United Kingdom plc [1994] IECA 342 (14th June, 1994)

Ipodec Ordures Usines S.A./GKN United Kingdom plc [1994] IECA 342 (14th June, 1994)

The non-compete clause of five years exceeded what is necessary for the transfer of goodwill, was not indispensable, and thus the agreement offends Section 4(1) and does not qualify for a licence under Section 4(2) of the Competition Act, 1991.

Citation
[1994] IECA 342
Parties
Purchaser: Ipodec Ordures Usines S. A.; Vendor: GKN United Kingdom plc; Vendor: Brambles Industries Limited
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Certificate or Licence Under Competition Act, 1991
Outcome
refusal of certificate or licence
Legal Topics
Non Compete Clauses, Sale of Business, Section 4 Competition Act 1991, Licensing Under Competition Law
Competition Law Non Compete Clauses Sale of Business Section 4 Competition Act 1991 Licensing Under Competition Law

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Parties

Ipodec Ordures Usines S. A.

Purchaser

GKN United Kingdom plc

Vendor

Brambles Industries Limited

Vendor

Procedural Posture

Competition Authority Notification / Decision on Certificate or Licence Under Competition Act, 1991

Legal Issues

  1. 1 Whether the non-compete clause in the sale agreement offends Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement qualifies for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The non-compete clause of five years exceeded what is necessary for the transfer of goodwill, was not indispensable, and thus the agreement offends Section 4(1) and does not qualify for a licence under Section 4(2) of the Competition Act, 1991.

Court Disposition

refusal of certificate or licence

Orders

  • Certificate or licence in respect of the agreement is refused.