Musicmaker Ltd/Retailers [1996] IECA 464 (19th April, 1996)

Musicmaker Ltd/Retailers [1996] IECA 464 (19th April, 1996)

The agreement does not have as its object or effect the prevention, restriction or distortion of competition in the State, as retailers are not prevented from sourcing elsewhere, are free to terminate the agreement, and Musicmaker is not restricted from supplying other retailers.

Citation
[1996] IECA 464
Parties
Applicant: Musicmaker Ltd; Respondent: Retailers (various)
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification/decision / Decision on Request for Certificate Under Section 4(4) of the Competition Act, 1991
Outcome
Certificate granted; agreement does not offend against Section 4(1) of the Competition Act, 1991.
Legal Topics
Anti Competitive Agreements, Distribution Agreements, Stockist Agreements, Section 4 Competition Act 1991
Competition Law Anti Competitive Agreements Distribution Agreements Stockist Agreements Section 4 Competition Act 1991

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Parties

Musicmaker Ltd

Applicant

Retailers (various)

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether the standard verbal agreement between Musicmaker Ltd and retailers for minimum stock levels and discounts constitutes a prohibited agreement under Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The agreement does not have as its object or effect the prevention, restriction or distortion of competition in the State, as retailers are not prevented from sourcing elsewhere, are free to terminate the agreement, and Musicmaker is not restricted from supplying other retailers.

Court Disposition

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

Orders

  • The Competition Authority certifies that the standard stockist verbal agreement between Musicmaker Ltd and the retailers does not offend against Section 4(1) of the Competition Act, 1991.