McMullan Bros/Power Supermarket [1994] IECA 308 (21st April, 1994)

McMullan Bros/Power Supermarket [1994] IECA 308 (21st April, 1994)

The inclusion of exclusive user clauses in the sale agreement does not offend against Section 4(1) of the Competition Act, 1991, as neither party is prevented from engaging in their respective businesses elsewhere, nor are other undertakings restricted from competing in the vicinity or elsewhere in the State.

Citation
[1994] IECA 308
Parties
Vendor: McMullan Bros Limited; Purchaser: Power Supermarkets Limited
Jurisdiction
Ireland
Procedural Posture
Competition Notification / Decision on Certificate Under Section 4 of Competition Act, 1991
Outcome
certificate issued
Legal Topics
Exclusive User Clauses, Sale Agreement, Restrictive Covenants
Competition Law Exclusive User Clauses Sale Agreement Restrictive Covenants

Case Brief

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Parties

McMullan Bros Limited

Vendor

Power Supermarkets Limited

Purchaser

Procedural Posture

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

Legal Issues

  1. 1 Whether the restrictive user clauses in the sale agreement prevent, restrict, or distort competition within the State under Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The inclusion of exclusive user clauses in the sale agreement does not offend against Section 4(1) of the Competition Act, 1991, as neither party is prevented from engaging in their respective businesses elsewhere, nor are other undertakings restricted from competing in the vicinity or elsewhere in the State.

Court Disposition

certificate issued

Orders

  • The Competition Authority certifies that the agreement does not offend against Section 4(1) of the Competition Act, 1991.