Shell Appointment & Licence [1994] IECA 325 (5th May, 1994)

Shell Appointment & Licence [1994] IECA 325 (5th May, 1994)

The Authority held that the licensee is a commercial agent of Shell, forming an integral part of Shell's distribution business, and that the agreement does not have as its object or effect the prevention, restriction, or distortion of competition. Therefore, the agreement does not offend Section 4(1) of the Competition Act, 1991.

Citation
[1994] IECA 325
Parties
Applicant: Irish Shell Ltd; Objector: Association of Shell Retailers
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification/decision / Decision on Notification for Certificate or Licence Under Section 4 of the Competition Act, 1991
Outcome
Certificate granted; agreement does not offend Section 4(1) of the Competition Act, 1991.
Legal Topics
Commercial Agency Agreements, Section 4 Competition Act 1991, Exclusive Dealing, Market Definition, Agency Vs Independent Trader
Competition Law Commercial Agency Agreements Section 4 Competition Act 1991 Exclusive Dealing Market Definition Agency Vs Independent Trader

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Parties

Irish Shell Ltd

Applicant

Association of Shell Retailers

Objector

Procedural Posture

Competition Authority Notification/decision / Decision on Notification for Certificate or Licence Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the standard appointment and licence agreement between Shell and licensees offends Section 4(1) of the Competition Act, 1991
  2. 2 Whether the licensee is a commercial agent or an independent undertaking for competition law purposes

Ratio Decidendi

The Authority held that the licensee is a commercial agent of Shell, forming an integral part of Shell's distribution business, and that the agreement does not have as its object or effect the prevention, restriction, or distortion of competition. Therefore, the agreement does not offend Section 4(1) of the Competition Act, 1991.

Court Disposition

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

Orders

  • The Competition Authority certifies that the standard agreement between Shell and its licensees for the operation of a Shell-owned petrol station does not offend against Section 4(1) of the Competition Act, 1991.