MBNA Europe Bank Ltd./ ACC Bank plc (Credit Card Affinity Agreement) [2001] IECA 592 (28th June, 2001)

MBNA Europe Bank Ltd./ ACC Bank plc (Credit Card Affinity Agreement) [2001] IECA 592 (28th June, 2001)

The Authority found that the notified agreement does not have as its object or effect the prevention, restriction or distortion of competition in the relevant market for credit card services in Ireland. The restrictive clauses were deemed necessary for the functioning of the agreement and reasonable for protecting legitimate business interests, without conferring significant market power or locking parties into anti-competitive arrangements. The agreement was therefore not in contravention of Section 4(1) of the Competition Act, 1991.

Citation
[2001] IECA 592
Parties
Applicant: MBNA Europe Bank Limited; Applicant: ACC Bank plc
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification/decision / Decision on Notification for Certificate Under Section 4 of the Competition Act, 1991
Outcome
Certificate issued; agreement does not contravene Section 4(1) of the Competition Act, 1991.
Legal Topics
Credit Card Affinity Agreements, Market Definition, Restrictive Agreements, Section 4 Competition Act 1991
Competition Law Credit Card Affinity Agreements Market Definition Restrictive Agreements Section 4 Competition Act 1991

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Parties

MBNA Europe Bank Limited

Applicant

ACC Bank plc

Applicant

Procedural Posture

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

Legal Issues

  1. 1 Whether the Credit Card Affinity Agreement between MBNA Europe Bank Limited and ACC Bank plc contravenes Section 4(1) of the Competition Act, 1991 by having as its object or effect the prevention, restriction or distortion of competition.

Ratio Decidendi

The Authority found that the notified agreement does not have as its object or effect the prevention, restriction or distortion of competition in the relevant market for credit card services in Ireland. The restrictive clauses were deemed necessary for the functioning of the agreement and reasonable for protecting legitimate business interests, without conferring significant market power or locking parties into anti-competitive arrangements. The agreement was therefore not in contravention of Section 4(1) of the Competition Act, 1991.

Court Disposition

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

Orders

  • The Competition Authority certifies that the Credit Card Affinity Agreement between MBNA Europe Bank Limited and ACC Bank plc (notification no. CA/3/01) does not contravene Section 4(1) of the Competition Act, 1991.