OFT re-opens beer tie investigation
The OFT has re-opened its examination of the beer tie - and has invited further comments from the industry on its response to CAMRA's super-complaint.
In a statement, the organisation said it had made the move in an attempt to head off the costly appeal against its October ruling that no action was required on the tie - even though it still believes it has a firm basis to defend its case.
"The OFT is mindful of the substantial resource that both it and CAMRA would need to invest in litigation," it said. "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 has welcomed the move. Chief executive Mike Benner said: "We are delighted that the OFT has responded to our appeal by agreeing to conduct an open consultation and I encourage all parties to use this opportunity to submit further evidence of anti-competitive practice. 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. CAMRA looks forward to working with the OFT to deliver reform of the beer tie so that the pub market works in the interests of consumers."
CAMRA's fundraising appeal for the reform of the beer tie, which raised over £8,000 since January, will be suspended during the consultation period, with the existing funds put towards CAMRA's legal fees.
Mark Hastings, the British Beer & Pub Associations's communications director, said: "We fully appreciate why the OFT is seeking a constructive alternative to the Competition Appeal Tribunal process, which would be expensive and time-consuming for all parties. We believe the OFT's original decision was robust and based on a sound assessment of the evidence. We look forward to engaging fully in the consultation process."
Last October the OFT announced that it had found no evidence that the beer tie was resulting in competition problems that are having an adverse impact on consumers, and that it would therefore be taking no further action. CAMRA subsequently applied for a review of the OFT's decision before the Competition Appeal Tribunal.
The OFT said it will now consider further representations and evidence and decide how to proceed before publishing its final views - with its examination of the beer tie continuing "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 March 24 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
