Tedcastle/McCrystal [1996] IECA 470 (27th June, 1996)

Tedcastle/McCrystal [1996] IECA 470 (27th June, 1996)

The notified agreements, as originally drafted, offended Section 4(1) of the Competition Act, 1991 due to their indefinite duration and lengthy notice periods, which were not indispensable to the objectives of improved distribution and consumer benefit. However, as amended to limit their duration to five years with no automatic renewal or notice period, the agreements fulfilled all the conditions of Section 4(2) and were eligible for a licence.

Citation
[1996] IECA 470
Parties
Applicant: Tedcastle McCormick & Co. Ltd; Respondent: Aidan McCrystal; Respondent: McCrystal Oils (Bellurgan) Ltd
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Final Decision on Notification and Licence Application
Outcome
Licences granted for amended agreements
Legal Topics
Exclusive Distribution Agreements, Exclusive Purchasing Agreements, Section 4 Competition Act 1991, Licensing of Anti Competitive Agreements
Competition Law Exclusive Distribution Agreements Exclusive Purchasing Agreements Section 4 Competition Act 1991 Licensing of Anti Competitive Agreements

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Parties

Tedcastle McCormick & Co. Ltd

Applicant

Aidan McCrystal

Respondent

McCrystal Oils (Bellurgan) Ltd

Respondent

Procedural Posture

Competition Authority Decision / Final Decision on Notification and Licence Application

Legal Issues

  1. 1 Whether the notified exclusive distribution agreements offend Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreements qualify for a licence under Section 4(2) of the Competition Act, 1991

Ratio Decidendi

The notified agreements, as originally drafted, offended Section 4(1) of the Competition Act, 1991 due to their indefinite duration and lengthy notice periods, which were not indispensable to the objectives of improved distribution and consumer benefit. However, as amended to limit their duration to five years with no automatic renewal or notice period, the agreements fulfilled all the conditions of Section 4(2) and were eligible for a licence.

Court Disposition

Licences granted for amended agreements

Orders

  • Licences granted under Section 4(2) of the Competition Act, 1991 for the amended distribution agreements between Tedcastle and Aidan McCrystal and McCrystal Oils, effective from 27 June 1996 to 26 June 2006.