OFT re-opens beer tie probe
The Office of Fair Trading (OFT) is to open a six-week consultation on its response to the Campaign for Real Ale's super-complaint on the beer tie.
The move means that CAMRA's appeal will now be stayed until 1 August to enable the OFT to consider further evidence.
In October, the OFT concluded that there was no "systematic failure" of the tied model and it was fair to consumers (OFT: no systematic failure in pubco model).
The OFT will now conduct an open public consultation before reaching a final decision.
CAMRA's super-complaint argued that anti-competitive practices are inflating pub beer prices by around 50p a pint, restricting consumer choice and leading to chronic underinvestment in the nation's pubs.
"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," said CAMRA chief executive Mike Benner.
"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.
The funds will be put towards CAMRA's legal fees. CAMRA reserves the right to re-activate its appeal should it be dissatisfied with the OFT's final decision following the consultation.
Firm basis to defend
The OFT said it believed it had a "firm basis" to defend the appeal but was mindful of the "substantial resource" that an appeal would cost both sides.
"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," it said.
Fair Pint founding member Steve Corbett said: "It's a massive victory for CAMRA."
• 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 PNZENfhcre-pbzcynvag@bsg.tfv.tbi.hx.
