Irish Competition Authority Decisions

1. Notification was made by Fuel Distributors Ltd on 11 October 1993 with a request for a certificate under Section 4(4) of the Competition Act, 1991 or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of a sale of property agreement with Joseph Enright.

2. The notification concerns the sale of property at Le Fanu Road, Ballyfermot, Dublin by Fuel Distributors Ltd to Joseph Enright. The premises consists of a large yard, offices and a number of sheds, and was previously used as a fuel and coal storage depot.

3. Fuel Distributors Ltd is a wholly owned subsidiary of consolidated Holdings Ltd, and Irish private limited company. It is engaged in the importation and distribution of fuel products, including coal, anthracite and smokeless coal and the distribution of oil and oil products. Mr. Joseph Enright is stated by Fuel Distributors Ltd to be involved in the scrap business.

4. The notified agreement for the sale of property at Le Fanu Road, Ballyfermot, Dublin was made on 6 October 1993. The sale of property agreement contains a restrictive covenant prohibiting Joseph Enright from using the premises at Le Fanu Road, Ballyfermot, Dublin for the sale or marketing, whether by wholesale or retail, of coals, anthracites, turf or other solid fuels.

5. The Authority considers that Fuel Distributors Ltd is an undertaking, within the meaning of Section 3 of the Competition Act, as it is engaged in the importation, distribution and sale of fuel products. Joseph Enright is involved in the buying and selling of scrap, and is also considered an undertaking within the meaning of Section 3 of the Act. The agreement is therefore between undertakings, and it has effect within a part of the State.

6. In the Authority's view agreements for the sale of property per se do not come within the scope of Section 4(1). In addition, the Authority considers that restrictions on the future use of property do not generally offend against Section 4(1). In this case the Authority considers that the notified agreement, including the restrictive covenant, does not have the object or effect of preventing, restricting or distorting competition in the solid fuel market in the State or in any part of the State. The restrictive covenant prevents the premises being used as a wholesale or retail outlet for solid fuel. Mr. Enright is not engaged in the solid fuel business at present and, should he wish to, he can do so in many other premises, both in the vicinity or elsewhere in the State. Similarly, the agreement does not prevent any other person engaging in the solid fuel business in any part of the State. The effect of the agreement is not, therefore, anti-competitive. The Authority considers that the notified agreement between Fuel Distributors Ltd and Joseph Enright does not offend against Section 4(1) of the Competition Act, 1991.

7. The Competition Authority has issued the following certificate:

The Competition Authority certifies that in its opinion, on the basis of the facts in its possession, the agreement between Fuel Distributors Ltd and Joseph Enright in relation to the purchase of property at Le Fanu Road, Ballyfermot, Dublin, (notification no. CA/61/93), notified on 11 October 1993 under Section 7, does not offend against section 4(1) of the Competition Act, 1991.

For the Competition Authority

Patrick M. Lyons

Chairman

18 November 1993.