Bord Telecom Eireann / L M Ericsson Holdings Ltd. [1998] IECA 506 (16th June, 1998)

Bord Telecom Eireann / L M Ericsson Holdings Ltd. [1998] IECA 506 (16th June, 1998)

The notified Shareholders Agreement does not contravene Section 4(1) of the Competition Act, 1991 because it does not have as its object or effect the prevention, restriction, or distortion of competition in the relevant market for R&D into advanced communications technologies. The agreement is between undertakings, but the arrangement is a research joint venture between non-competitors, does not restrict the development of other R&D centres, and sufficient competition exists in the market.

Citation
[1998] IECA 506
Parties
Notifying Party: Bord Telecom Eireann; Notifying Party: L M Ericsson Holdings Ltd; Notified Party: Broadcom Eireann Research Ltd
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Authority Decision
Outcome
Certificate issued: notified agreement does not contravene Section 4(1) of the Competition Act, 1991.
Legal Topics
Research Joint Ventures, Section 4 Competition Act 1991, Shareholders Agreement, R&d Market Definition
Competition Law Research Joint Ventures Section 4 Competition Act 1991 Shareholders Agreement R&d Market Definition

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Parties

Bord Telecom Eireann

Notifying Party

L M Ericsson Holdings Ltd

Notifying Party

Broadcom Eireann Research Ltd

Notified Party

Procedural Posture

Competition Authority Notification / Authority Decision

Legal Issues

  1. 1 Whether the Shareholders Agreement between Bord Telecom Eireann, L M Ericsson Holdings Ltd, and Broadcom Eireann Research Ltd contravenes Section 4(1) of the Competition Act, 1991
  2. 2 Whether Broadcom Eireann Research Ltd is an 'undertaking' within the meaning of the Competition Act, 1991

Ratio Decidendi

The notified Shareholders Agreement does not contravene Section 4(1) of the Competition Act, 1991 because it does not have as its object or effect the prevention, restriction, or distortion of competition in the relevant market for R&D into advanced communications technologies. The agreement is between undertakings, but the arrangement is a research joint venture between non-competitors, does not restrict the development of other R&D centres, and sufficient competition exists in the market.

Court Disposition

Certificate issued: notified agreement does not contravene Section 4(1) of the Competition Act, 1991.

Orders

  • The Competition Authority certifies that, in its opinion, on the basis of the facts in its possession, the Shareholders Agreement dated 30 June 1987 between Bord Telecom Eireann, L. M. Ericsson Holdings Ltd and Broadcom Research Eireann Ltd notified under Section 7 on 30 September 1992 (Notification No. CA/683/92E)...