News Article Comments : OFT will take no further action on pubcos

The Office of Fair Trading (OFT) will take no further action following the Campaign for Real Ale's (Camra) super-complaint over pubcos and the beer tie.

The OFT said it had "not found evidence that supply ties are resulting in competition problems that are having an adverse impact on consumers".

In its eagerly awaited response, the OFT said there was "generally effective competition" between pubs and it did not believe that the beer tie contributed to higher prices or prevented pubs offering wider choice to customers.

In its super-complaint, Camra hit out at tied beer prices for tenants and the "flawed" system of setting rents.

It also urged pubcos to offer licensees greater access to local beers and for a law preventing pubs being sold with restrictive covenants. However, Camra urged the beer tie itself to remain.

But the OFT said: "The OFT has received submissions from pub lessees outlining their concerns about the rent assessment process and their negotiations with pub landlord