Blugas Ltd/bulk customers [1995] IECA 389 (10th April, 1995)

Blugas Ltd/bulk customers [1995] IECA 389 (10th April, 1995)

The Authority found that the exclusive purchasing requirement in the Blugas bulk LPG supply agreement offended Section 4(1) by restricting competition, but granted a licence under Section 4(2) because the agreement improved distribution, allowed consumers a fair share of benefits, was indispensable for investment recovery, and did not eliminate competition in a substantial part of the market.

Citation
[1995] IECA 389
Parties
Applicant: Blugas Limited; Decision Maker: Competition Authority
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification and Licence Application / Final Decision and Licence Grant
Outcome
Licence granted subject to conditions
Legal Topics
Exclusive Purchasing Agreements, Section 4 Competition Act 1991, Market Foreclosure, Licensing of Restrictive Agreements, Distribution Agreements
Competition Law Exclusive Purchasing Agreements Section 4 Competition Act 1991 Market Foreclosure Licensing of Restrictive Agreements Distribution Agreements

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Parties

Blugas Limited

Applicant

Competition Authority

Decision Maker

Procedural Posture

Competition Authority Notification and Licence Application / Final Decision and Licence Grant

Legal Issues

  1. 1 Whether the standard Blugas bulk LPG supply 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 Authority found that the exclusive purchasing requirement in the Blugas bulk LPG supply agreement offended Section 4(1) by restricting competition, but granted a licence under Section 4(2) because the agreement improved distribution, allowed consumers a fair share of benefits, was indispensable for investment recovery, and did not eliminate competition in a substantial part of the market.

Court Disposition

Licence granted subject to conditions

Orders

  • Licence granted to the standard Blugas bulk LPG supply agreement for ten years from 10 April 1995 to 9 April 2005.
  • Blugas must submit annual reports to the Authority before the end of April each year, detailing the number of industrial LPG agreements in operation and total volume of sales in tonnes for the preceding year.