Johnstone Paints / Circle Paints Ltd [1999] IECA 539 (24th March, 1999)

Johnstone Paints / Circle Paints Ltd [1999] IECA 539 (24th March, 1999)

The agreement does not restrict competition within the meaning of Section 4(1) of the Competition Act, 1991, as the parties' market shares are small, effective competition exists, and the agreement's provisions are pro-competitive and reasonable.

Citation
[1999] IECA 539
Parties
Supplier: Johnstone's Paints plc; Distributor: Circle Paints Limited
Jurisdiction
Ireland
Procedural Posture
Competition Notification / Decision on Certificate Under Section 4 of the Competition Act, 1991
Outcome
certificate granted; agreement does not contravene Section 4(1)
Legal Topics
Exclusive Distribution Agreements, Restriction of Competition, Market Definition, Rule of Reason, Intellectual Property Obligations
Competition Law Exclusive Distribution Agreements Restriction of Competition Market Definition Rule of Reason Intellectual Property Obligations

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Parties

Johnstone's Paints plc

Supplier

Circle Paints Limited

Distributor

Procedural Posture

Competition Notification / Decision on Certificate Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the exclusive distribution agreement restricts competition within the meaning of Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement qualifies for a certificate or licence under the Act

Ratio Decidendi

The agreement does not restrict competition within the meaning of Section 4(1) of the Competition Act, 1991, as the parties' market shares are small, effective competition exists, and the agreement's provisions are pro-competitive and reasonable.

Court Disposition

certificate granted; agreement does not contravene Section 4(1)

Orders

  • Certificate issued stating the exclusive distribution agreement does not contravene Section 4(1) of the Competition Act, 1991