NEWS
OFT to revisit beer tie investigation
POSTED 08 Feb 2010 . BY Pete Hayman
An investigation into the use of 'beer-tie' arrangements is set to be reopened by the Office of Fair Trading (OFT) after the Campaign for Real Ale (CAMRA) challenged the initial verdict.

The OFT ruled in October 2009 that it could find no evidence that the use of beer supply ties by pub companies was restricting competition and having an adverse impact on consumer choice.

However, it has agreed to open a consultation on its response to CAMRA's super-complaint following the consumer group's decision to challenge the decision in a bid to avoid a lengthy and costly legal process.

An OFT spokesperson said: "Having carefully considered CAMRA's grounds of appeal, the OFT believes it has a firm basis to defend the appeal. The OFT is mindful of the substantial resource that both it and CAMRA would need to invest in litigation.

"The OFT has therefore decided that it would be a more constructive use of resources to allow CAMRA and any other interested persons or groups the opportunity to make representations about the findings it reached in its response to the super-complaint."

CAMRA chief executive Mike Benner added: "The consultation will lead to a new and final decision from the OFT. We are hopeful that on re-examination of the pubs market the OFT will decide to act against anti-competitive behaviour in order to deliver a fair deal for consumers."

The consultation closes at 5pm on 24 March.

 


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08 Feb 2010

OFT to revisit beer tie investigation
BY Pete Hayman

An investigation into the use of 'beer-tie' arrangements is set to be reopened by the Office of Fair Trading (OFT) after the Campaign for Real Ale (CAMRA) challenged the initial verdict.

The OFT ruled in October 2009 that it could find no evidence that the use of beer supply ties by pub companies was restricting competition and having an adverse impact on consumer choice.

However, it has agreed to open a consultation on its response to CAMRA's super-complaint following the consumer group's decision to challenge the decision in a bid to avoid a lengthy and costly legal process.

An OFT spokesperson said: "Having carefully considered CAMRA's grounds of appeal, the OFT believes it has a firm basis to defend the appeal. The OFT is mindful of the substantial resource that both it and CAMRA would need to invest in litigation.

"The OFT has therefore decided that it would be a more constructive use of resources to allow CAMRA and any other interested persons or groups the opportunity to make representations about the findings it reached in its response to the super-complaint."

CAMRA chief executive Mike Benner added: "The consultation will lead to a new and final decision from the OFT. We are hopeful that on re-examination of the pubs market the OFT will decide to act against anti-competitive behaviour in order to deliver a fair deal for consumers."

The consultation closes at 5pm on 24 March.


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