EU: no action on beer tie
The EU has renewed the regulations that permit the beer tie for another 10 years, with few changes that will impact on pubs and brewers.
The Block Exemption Regulations, which permit vertical agreements such as beer ties, have been renewed until June 2022.
The new rules have kept the same threshold of market share - 30% - under which the exemptions will apply.
Rupert Croft, partner at law firm Maitland Walker, said: "The most notable change is that the definition of market share of 30% will now include buyers as well as suppliers, but this is unlikely to affect pub companies.
"It looks like business as usual for the pub industry."
The EU has also decided not to have specific policies for different industries.
The new rules apply from June, although there will be a one-year transitional phase.
Competition Commissioner Joaquin Almunia said: "The rules adopted today will ensure that consumers can buy goods and services at the best available prices wherever they are located in the EU while leaving companies without market power essentially free to organise their sales network as they see best."
Fair Pint and the GMB had been lobbying the European Commission not to renew the opt out for the beer tie.
Fair Pint spokesman Steve Corbett said the move is not unexpected.
"Fair Pint were encouraged by our meetings with MEPs and Commission officials and there is a real concern about the impact of the pubco model on British consumers and individual tied publicans.
"The fact that we haven't see any significant changes to the Block Exemption isn't unexpected; the UK tied pub market is only one very small part of the industries which fall under the rules and any changes would have to consider the impact on these other sectors."
Brigid Simmonds, chief executive of the British Beer and Pub Association, said: "This is a positive decision by the European Commission, which follows an exacting examination by them of all the evidence from a wide range of parties.
"The decision confirms that under EU law the tie, along with many other similar business agreements, remains a recognised and legitimate business model, which fully complies with EU competition rules.
"Nonetheless, changes to the way the tie operates remain necessary and we will continue the work to reform the tie through the implementation of the Pub Industry Code of Practice."
Independent Family Brewers of Britain chairman Paul Wells said: "It's great news because it does validate the business model that the family brewers have been championing for a long time.
"For regional brewers of all sizes, the tie is an absolutely vital part of our business model. It provides tremendous regional choice in brewing and a wide range of cask ales for consumers across the country. It's good news for all."
