Esso Solus & Related Agreements [1992] IECA 4 (25th June, 1992)

Esso Solus & Related Agreements [1992] IECA 4 (25th June, 1992)

The Authority found that Esso solus and related agreements restrict competition under Section 4(1) but fulfil Section 4(2) criteria by improving distribution, allowing consumers a fair share of benefits, being indispensable, and not eliminating competition. Licences are granted for ten years. Recommended retail prices do not constitute resale price maintenance provided dealers are free to set their own prices and price similarity does not occur.

Citation
[1992] IECA 4
Parties
Applicant: Esso Ireland Limited; Decision Maker: Competition Authority; Interested Party: Society of the Irish Motor Industry
Jurisdiction
Ireland
Procedural Posture
Competition Law Notification and Licence Application / Final Decision
Outcome
Licence granted
Legal Topics
Exclusive Purchasing Agreements, Solus Agreements, Dealer Loan Agreements, Deed of Charge/mortgage, Section 4 Competition Act 1991, Block Exemption Regulation, Resale Price Maintenance
Competition Law Exclusive Purchasing Agreements Solus Agreements Dealer Loan Agreements Deed of Charge/mortgage Section 4 Competition Act 1991 Block Exemption Regulation Resale Price Maintenance

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Parties

Esso Ireland Limited

Applicant

Competition Authority

Decision Maker

Society of the Irish Motor Industry

Interested Party

Procedural Posture

Competition Law Notification and Licence Application / Final Decision

Legal Issues

  1. 1 Whether Esso solus and related agreements restrict competition under Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreements qualify for a licence under Section 4(2)
  3. 3 Whether recommended retail prices constitute resale price maintenance

Ratio Decidendi

The Authority found that Esso solus and related agreements restrict competition under Section 4(1) but fulfil Section 4(2) criteria by improving distribution, allowing consumers a fair share of benefits, being indispensable, and not eliminating competition. Licences are granted for ten years. Recommended retail prices do not constitute resale price maintenance provided dealers are free to set their own prices and price similarity does not occur.

Court Disposition

Licence granted

Orders

  • Section 4(1) Competition Act, 1991 declared inapplicable to notified Esso solus agreements, dealer equipment loan agreements, dealer loan agreements, and deed of charge/mortgage agreements.
  • Licences granted for each category of agreement from 25 June 1992 to 24 June 2002.