Nallen/O'Toole [1992] IECA 1 (2nd April, 1992)

Nallen/O'Toole [1992] IECA 1 (2nd April, 1992)

The non-competition clause is not in breach of Section 4(1) of the Competition Act, 1991 because it is limited to what is necessary for the transfer of goodwill, does not reduce the number of actual competitors, and does not restrict potential competition in the relevant market.

Citation
[1992] IECA 1
Parties
Purchaser: Thomas J. Nallen; Vendor: Edward O'Toole
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification Decision / Final Decision
Outcome
Certificate issued; agreement does not offend Section 4(1) of the Competition Act, 1991.
Legal Topics
Non Competition Clause, Transfer of Business, Goodwill, Market Definition, Restraint of Trade
Competition Law Non Competition Clause Transfer of Business Goodwill Market Definition Restraint of Trade

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Parties

Thomas J. Nallen

Purchaser

Edward O'Toole

Vendor

Procedural Posture

Competition Authority Notification Decision / Final Decision

Legal Issues

  1. 1 Whether the non-competition clause in the agreement between Nallen and O'Toole breaches Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement prevents, restricts, or distorts competition in the relevant market

Ratio Decidendi

The non-competition clause is not in breach of Section 4(1) of the Competition Act, 1991 because it is limited to what is necessary for the transfer of goodwill, does not reduce the number of actual competitors, and does not restrict potential competition in the relevant market.

Court Disposition

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

Orders

  • The Competition Authority certifies that the agreement for the transfer of business interest between Nallen and O'Toole does not offend Section 4(1) of the Competition Act, 1991.