Ir.Distillers/Cooley Dist. [1994] IECA 285 (25th February, 1994)

Ir.Distillers/Cooley Dist. [1994] IECA 285 (25th February, 1994)

The Authority found that the relevant market is the Irish whiskey market in Ireland, that the notified arrangement would eliminate the only independent competitor to Irish Distillers Group plc in that market, and that significant barriers to entry exist. The acquisition would therefore restrict or distort competition contrary to section 4(1) of the Competition Act. The Authority further found that the arrangement did not satisfy the requirements for the grant of a certificate or licence under section 4(2), as no sufficient benefits to outweigh the anti-competitive effects were demonstrated.

Citation
[1994] IECA 285
Parties
Applicant: Irish Distillers Group plc; Respondent: Cooley Distillery plc
Jurisdiction
Ireland
Procedural Posture
Competition Notification/merger Control / Decision on Notification for Certificate or Licence Under Competition Act
Outcome
refused certificate and licence
Legal Topics
Market Definition, Abuse of Dominance, Merger Control, Barriers to Entry, Relevant Product Market, Relevant Geographic Market
Competition Law Mergers & Acquisitions Market Definition Abuse of Dominance Merger Control Barriers to Entry Relevant Product Market Relevant Geographic Market

Case Brief

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Parties

Irish Distillers Group plc

Applicant

Cooley Distillery plc

Respondent

Procedural Posture

Competition Notification/merger Control / Decision on Notification for Certificate or Licence Under Competition Act

Legal Issues

  1. 1 Whether the proposed acquisition of Cooley Distillery plc by Irish Distillers Group plc would restrict or distort competition in the relevant market under section 4(1) of the Competition Act
  2. 2 Whether the arrangement qualifies for a certificate or licence under section 4(2) of the Competition Act
  3. 3 Definition of the relevant product and geographic market

Ratio Decidendi

The Authority found that the relevant market is the Irish whiskey market in Ireland, that the notified arrangement would eliminate the only independent competitor to Irish Distillers Group plc in that market, and that significant barriers to entry exist. The acquisition would therefore restrict or distort competition contrary to section 4(1) of the Competition Act. The Authority further found that the arrangement did not satisfy the requirements for the grant of a certificate or licence under section 4(2), as no sufficient benefits to outweigh the anti-competitive effects were demonstrated.

Court Disposition

refused certificate and licence

Orders

  • Certificate under section 4(2) of the Competition Act refused.
  • Licence under section 4(2) of the Competition Act refused.