OFT opens consultation on CAMRA super-complaint decision

14/10 5 February 2010

The OFT has today opened a consultation on its response to the super-complaint regarding the 'beer tie' submitted by the Campaign for Real Ale (CAMRA).

On 22 October 2009, the OFT announced that it had found no evidence that beer supply ties are resulting in competition problems that are having an adverse impact on consumers, and that it would therefore be taking no further action.

CAMRA has subsequently applied for a review of the OFT's decision before the Competition Appeal Tribunal.

Having carefully considered CAMRA's grounds of appeal, the OFT believes it has a firm basis to defend the appeal. However, 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.

As a consequence of the OFT's decision to open the consultation, the OFT and CAMRA have agreed to adjourn appeal proceedings.

The OFT therefore invites comment on the findings set out in its 22 October response. The OFT will carefully consider any further representations and evidence received during the course of the consultation process and then decide how to proceed before publishing its final views. The OFT's examination of the beer tie following CAMRA's super-complaint will continue to focus on whether effective competition is delivering choice and value for consumers.

Written views on the OFT's response to the super-complaint, should be submitted by 5pm on 24 March 2010 to:

CAMRA Super-complaint Team
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

or email CAMRAsuper-complaint@oft.gsi.gov.uk

NOTES:

1. In its super-complaint to the OFT dated 24 July 2009, CAMRA asked the OFT to consider its concerns regarding the operation of exclusive purchasing obligations by pub-owning companies, which require lessees to purchase beer solely through their pub-owning companies - also known as 'beer ties' or 'supply ties'.

2. The Enterprise Act 2002 (the Act) makes provision for designated consumer bodies to make super-complaints. A super-complaint, as defined by section 11(1) of the Act, is a complaint submitted by a designated consumer body that 'any feature, or combination of features, of a market in the United Kingdom for goods or services is or appears to be significantly harming the interests of consumers'. CAMRA is a designated consumer body. Within 90 days after the day on which a super-complaint is received, the OFT must say publicly how it proposes to deal with it.

3. Download the OFT's reponse to CAMRA's supercomplaint (pdf 644kb).

4. For more information regarding the OFT's consultation, see www.oft.gov.uk/CAMRA-consultation.

5. The Order issued by the Competition Appeal Tribunal adjourning the appeal proceedings will be available at www.catribunal.org.uk.

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