Conoco Ireland Ltd /distributor agreement; Conoco Ireland Ltd/bulk storage loan agreement; Conoco Ireland Ltd/distributor depot licence [1995] IECA 413 (25th August, 1995)

Conoco Ireland Ltd /distributor agreement; Conoco Ireland Ltd/bulk storage loan agreement; Conoco Ireland Ltd/distributor depot licence [1995] IECA 413 (25th August, 1995)

The Authority found that the original agreements, by imposing exclusive purchasing obligations for ten years and post-termination non-compete clauses, restricted competition and did not meet the conditions for exemption under Section 4(2). However, as amended to limit exclusive purchasing to five years and remove post-termination restrictions, the agreements were found to satisfy all statutory conditions for a licence under Section 4(2).

Citation
[1995] IECA 413
Parties
Applicant: Conoco Ireland Ltd; Distributor: Rustic Oil Products Ltd; Distributor: Breffni Oil Distributors; Decision Maker: Irish Competition Authority
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Notification and Licence Application
Outcome
Licence granted for amended agreements
Legal Topics
Exclusive Purchasing Agreements, Exclusive Distribution Agreements, Block Exemption Regulations, Market Structure, Duration of Agreements, Post Termination Restrictions
Competition Law Exclusive Purchasing Agreements Exclusive Distribution Agreements Block Exemption Regulations Market Structure Duration of Agreements Post Termination Restrictions

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Parties

Conoco Ireland Ltd

Applicant

Rustic Oil Products Ltd

Distributor

Breffni Oil Distributors

Distributor

Irish Competition Authority

Decision Maker

Procedural Posture

Competition Authority Decision / Final Decision on Notification and Licence Application

Legal Issues

  1. 1 Whether the notified agreements between Conoco and its distributors offend Section 4(1) of the Competition Act, 1991 by restricting competition
  2. 2 Whether the agreements as amended satisfy the conditions for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The Authority found that the original agreements, by imposing exclusive purchasing obligations for ten years and post-termination non-compete clauses, restricted competition and did not meet the conditions for exemption under Section 4(2). However, as amended to limit exclusive purchasing to five years and remove post-termination restrictions, the agreements were found to satisfy all statutory conditions for a licence under Section 4(2).

Court Disposition

Licence granted for amended agreements

Orders

  • Licence granted under Section 4(2) of the Competition Act, 1991 for the amended Conoco standard distributor agreement, bulk storage loan agreement, and depot licence, effective from 25 August 1995 to 24 August 2005.
  • Licence applies to agreements amended to accord with the replacement agreements with Rustic Oil Products Ltd or Breffni Oil Distributors.