The Competition Authority has said that an overall ban on exclusive agreements between suppliers and retailers does not apply to most service stations and oil firms which supply them. The exemption applies to suppliers who have made a sizeable investment in the retailer’s business, according to the Irish Times.
The watchdog had given a special license in 1993 to allow oil companies to tie service stations into exclusive agreements. The license was due to expire on June 30, 2008. It has been renewed for an additional two years, after which it will be reviewed.
The news source has also reported the authority’s intention to revoke a ban on maximum resale price maintenance. The exemption had been granted to certain petrol and diesel supply arrangements, as suppliers had provided for pumps and other related equipment to independent service stations.
