Bacardi infringes UK competition law
Campaign News | Monday, 1 July 2002
OFT PROPOSES TO FIND BACARDI EXCLUSIVE AGREEMENTS BREACH COMPETITION
OFFICE OF FAIR TRADING
38/02 28 June 2002
OFT PROPOSES TO FIND BACARDI EXCLUSIVE AGREEMENTS BREACH COMPETITION
LAW
The OFT proposes to make a decision that Bacardi has infringed UK
competition law.
The OFT has today written to Bacardi setting out why it proposes to
find that the company infringed Chapter II of the Competition Act
1998 by entering into a number of agreements requiring pubs and bars,
among other things, to sell only white rum produced by Bacardi.
Bacardi is the main supplier of white rum in the UK.
The company now has the opportunity to make written and oral
representations in response to the OFT's proposed decision. These
will be taken fully into account before any final decision is made.
NOTES
1 Powers under the Competition Act 1998 The Act gives the OFT powers
to investigate suspected infringements of the Act's prohibitions:
i) the Chapter I prohibition prohibits agreements between
undertakings, decisions by associations of undertakings or concerted
practices which have the object or effect of preventing, restricting
or distorting competition in the UK (or any part of it) and which may
affect trade within the UK (or any part of it); and
ii) the Chapter II prohibition prohibits conduct by one or more
undertakings which amounts to the abuse of a dominant position in a
market which may affect trade within the UK (or any part of it).
2. Rule 14 of the Competition Act 1998 (Director's rules) Order 2000
requires the OFT to provide a written notice to each person who OFT
considers is engaged in the conduct which has led to an infringement.
Bacardi has today received such a notice.
3 In this press release the functions of the Director General of
Fair Trading (DGFT) under the Act are for simplicity described as the
functions of "the OFT". The Enterprise Bill proposes to replace the
office of the DGFT with the OFT, to which would be transferred the
DGFT's functions.
