Shell Loan Agreement for Lubrication Bay Equipment. [1995] IECA 455 (19th December, 1995)

Shell Loan Agreement for Lubrication Bay Equipment. [1995] IECA 455 (19th December, 1995)

The notified Shell agreement, by requiring exclusive use of Shell products in loaned equipment, offended Section 4(1) as it could amount to exclusive purchasing and restrict competition. The original ten-year term was not indispensable and risked market foreclosure. The amended agreement, limiting exclusivity to five years and allowing early termination or purchase of equipment, satisfied Section 4(2) and was eligible for a licence.

Citation
[1995] IECA 455
Parties
Applicant: Irish Shell Ltd; Decision Maker: Competition Authority; User/contracting Party: Murphy & Gunn Ltd
Jurisdiction
Ireland
Procedural Posture
Competition Law Notification and Licence Application / Final Decision
Outcome
Licence granted to amended agreement; certificate refused for original agreement.
Legal Topics
Exclusive Dealing, Loan Agreements, Market Foreclosure, Licensing Under Competition Act 1991
Competition Law Exclusive Dealing Loan Agreements Market Foreclosure Licensing Under Competition Act 1991

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Parties

Irish Shell Ltd

Applicant

Competition Authority

Decision Maker

Murphy & Gunn Ltd

User/contracting Party

Procedural Posture

Competition Law Notification and Licence Application / Final Decision

Legal Issues

  1. 1 Whether the Shell standard form lubrication bay equipment loan agreement offends Section 4(1) of the Competition Act 1991
  2. 2 Whether the agreement qualifies for a certificate or licence under Section 4(2) of the Competition Act 1991

Ratio Decidendi

The notified Shell agreement, by requiring exclusive use of Shell products in loaned equipment, offended Section 4(1) as it could amount to exclusive purchasing and restrict competition. The original ten-year term was not indispensable and risked market foreclosure. The amended agreement, limiting exclusivity to five years and allowing early termination or purchase of equipment, satisfied Section 4(2) and was eligible for a licence.

Court Disposition

Licence granted to amended agreement; certificate refused for original agreement.

Orders

  • Licence granted under Section 4(2) of the Competition Act 1991 to the amended Shell lubrication bay equipment loan agreement (as per agreement with Murphy & Gunn Ltd, dated 22 November 1995), effective from 22 November 1995 to 21 November 2005.
  • Licence also applies to other Shell equipment loan agreements amended in the same manner.