Delphi Software / Contractors Contract for Services [1998] IECA 498 (1st April, 1998)

Delphi Software / Contractors Contract for Services [1998] IECA 498 (1st April, 1998)

The confidentiality and non-compete clauses in the standard contract for services are ancillary and necessary for the proper functioning of the relationship between Delphi and its contractors, do not have as their object or effect the restriction of competition, and therefore do not offend Section 4(1) of the Competition Act, 1991.

Citation
[1998] IECA 498
Parties
Applicant: Delphi Software Ltd.; Decision Maker: Competition Authority
Jurisdiction
Ireland
Procedural Posture
Competition Law Notification / Decision on Notification for Certificate Under Section 4(4) of the Competition Act, 1991
Outcome
Certificate issued; contract does not offend Section 4(1) of the Competition Act, 1991.
Legal Topics
Non Compete Clauses, Confidentiality Agreements, Contract for Services, Section 4 Competition Act 1991
Competition Law Non Compete Clauses Confidentiality Agreements Contract for Services Section 4 Competition Act 1991

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Parties

Delphi Software Ltd.

Applicant

Competition Authority

Decision Maker

Procedural Posture

Competition Law Notification / Decision on Notification for Certificate Under Section 4(4) of the Competition Act, 1991

Legal Issues

  1. 1 Whether the standard contract for services between Delphi Software Ltd. and its contractors contains provisions that have as their object or effect the prevention, restriction or distortion of competition contrary to Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The confidentiality and non-compete clauses in the standard contract for services are ancillary and necessary for the proper functioning of the relationship between Delphi and its contractors, do not have as their object or effect the restriction of competition, and therefore do not offend Section 4(1) of the Competition Act, 1991.

Court Disposition

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

Orders

  • The Competition Authority certifies that the standard contract for services between Delphi Software Limited and its contractors does not offend against Section 4(1) of the Competition Act, 1991.