Reflex Invest/Storage Tech [1994] IECA 329 (19th May, 1994)

Reflex Invest/Storage Tech [1994] IECA 329 (19th May, 1994)

The exclusive distribution agreement imposed absolute territorial protection, restricted the distributor's freedom to choose customers and set resale prices, and thus offended Section 4(1) of the Competition Act, 1991. The agreement did not satisfy the conditions for a licence under Section 4(2), and as it had expired, no retrospective licence could be granted.

Citation
[1994] IECA 329
Parties
Applicant: Reflex Investments plc; Respondent: Storage Technology Ltd
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification / Decision on Notification and Licence Application
Outcome
Refusal of certificate and licence
Legal Topics
Exclusive Distribution Agreements, Section 4 Competition Act 1991, Licensing of Anti Competitive Agreements
Competition Law Exclusive Distribution Agreements Section 4 Competition Act 1991 Licensing of Anti Competitive Agreements

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Parties

Reflex Investments plc

Applicant

Storage Technology Ltd

Respondent

Procedural Posture

Competition Authority Notification / Decision on Notification and Licence Application

Legal Issues

  1. 1 Whether the exclusive distribution agreement contravened Section 4(1) of the Competition Act, 1991
  2. 2 Whether a certificate or licence should be granted under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The exclusive distribution agreement imposed absolute territorial protection, restricted the distributor's freedom to choose customers and set resale prices, and thus offended Section 4(1) of the Competition Act, 1991. The agreement did not satisfy the conditions for a licence under Section 4(2), and as it had expired, no retrospective licence could be granted.

Court Disposition

Refusal of certificate and licence

Orders

  • Certificate refused under Section 4(1) Competition Act, 1991
  • Licence refused under Section 4(2) Competition Act, 1991