Pub sector ‘ties’ cleared by OFT (by Greet Heyse)

The Office of Fair Trading declared to haven’t found any evidence that the link between pub companies and landlords is damaging the competition in the pub sector. The investigation came after a complaint from the Campaign for Real Ale, who claimed that landlords had to buy beer from their own pub owners.

Camra said it is important that OFT’s decision should be overturned. They can’t accept that the consumer benefits from the competition and choices within the sector.

Action is very necessary right now according to Camra. The government should prevent the flow of the pub closures and ensure that the consumers get a fair share according to the agreements as demanded by the competition law.

OFT reacted by saying that companies who are owned by a pub are not protected from competition by simple agreements with their lessees.
The organization will therefore take no further actions

The biggest operator does not complain hopes that the industry will still move forward. Enterprise, who is also a big operator, also has no complaints because thanks to the ‘beer’ ties that there was a chance for entrepreneurs who are unable to afford to buy a pub on their own.

Personally, I do not know precisely how far people can go in competition. But I do know that they can’t deceive people or restrain other parties from competing. It seems that both parties have some severe arguments. I think, as long as there are no clear negative consequences, the ties can remain and everything should stay as it is now. Also very important is that the consumer is very favored in the whole situation and I think that this was crucial to the decision of the government.


Source: http://news.bbc.co.uk/2/hi/business/8319771.stm