Mentec/Online [1993] IECA 141 (27th October, 1993)

Mentec/Online [1993] IECA 141 (27th October, 1993)

The non-compete clause, limited to five years and the Republic of Ireland, is necessary for the transfer of goodwill and technical know-how and does not prevent, restrict, or distort competition within the meaning of Section 4(1) of the Competition Act, 1991.

Citation
[1993] IECA 141
Parties
Purchaser: Mentec Limited; Vendor: Denis McMahon; Vendor: Francis Watters; Vendor: Timothy Murphy; Vendor: Margaret McMahon; Vendor: Sam Alvis; Vendor: David Alvis; Vendor: Nigel Alvis; Vendor: Patrick Cousins; Vendor: W. H. Gardiner
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Certificate Under Competition Act 1991
Outcome
certificate granted; agreement does not offend Section 4(1) of the Competition Act, 1991
Legal Topics
Non Compete Clause, Sale of Business, Merger Control, Restraint of Trade
Competition Law Non Compete Clause Sale of Business Merger Control Restraint of Trade

Case Brief

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Parties

Mentec Limited

Purchaser

Denis McMahon

Vendor

Francis Watters

Vendor

Timothy Murphy

Vendor

Margaret McMahon

Vendor

Sam Alvis

Vendor

David Alvis

Vendor

Nigel Alvis

Vendor

Patrick Cousins

Vendor

W. H. Gardiner

Vendor

Procedural Posture

Competition Authority Notification / Decision on Certificate Under Competition Act 1991

Legal Issues

  1. 1 Whether the non-compete clause in the sale of Online Computing Limited to Mentec Limited offends Section 4(1) of the Competition Act, 1991.

Ratio Decidendi

The non-compete clause, limited to five years and the Republic of Ireland, is necessary for the transfer of goodwill and technical know-how and does not prevent, restrict, or distort competition within the meaning of 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 agreement does not offend against Section 4(1) of the Competition Act, 1991.