BBPA welcomes EU beer tie ruling
The British Beer & Pub Association (BBPA) has welcomed a ruling on the beer tie which confirms the model complies with EU competition rules.
However, Brigid Simmonds, the BBPA's chief executive admitted changes to the way the tie operates "remain necessary" and will "continue to work to reform the tie" through its framework code of practice.
The European Commission (EC) yesterday agreed to continue its "block exemption" on certain "vertical agreements" which could pose competition issues, including the beer tie, until 2022.
It follows a lengthy investigation by European officials.
Simmonds said it was a "positive decision" after an "exacting examination by them (the EC) of all the evidence from a wide range of parties."
She added: "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."
Licensing lawyer Rupert Croft, of Maitland Walker, said it was "business as usual for the pub industry", as the new guidelines on ties were similar to the old ones.
He added: "The most notable change is that the definition of market share of 30 per cent will now include buyers as well as suppliers, but this is unlikely to affect pub companies."
Anti-tie campaigners tried to persuade EC officials the beer tie was anti-competitive during a meeting last September, but their efforts appear to have failed.
Fair Pint's Steve Corbett said he was "not surprised" by the decision.
However CAMRA chief executive Mike Benner said it was "certainly not business as usual".
"The block exemption is not a hiding place for anti-competitive agreements which do not benefit consumers and we welcome changes to the block exemption limiting its application," he said.
"The block exemption will not apply where either the buyer or supplier has a market share above 30 per cent and does not exempt hardcore restriction of competition.
"The new block exemption also allows the Commission to withdraw the exemption for parallel networks of similar restraints."
