Investigation into concerns in JCB Equipment Market
June 1, 2007
Outcome of investigation
The Competition Authority (“The Authority”) began an investigation into alleged anticompetitive conduct by Equipment Company of Ireland Limited (“ECI-JCB”) and Kellys of Borris Limited (“Kellys”).
The case was closed in June 2007 when the Authority secured undertakings from parties.
Outline of case
ECI JCB and Kellys established an independent joint venture company Ronason limited (trading as ECI-JCB Agri (Kilkenny)) for the retail sales of JCB products in the south-east of Ireland.
The Authority had concerns that the arrangements between ECI-JCB and Kellys, in relation to the operation of Ronason, breached competition law. The focus of the Authority’s investigation was the exchange of commercially sensitive information between independent businesses and the restriction on Ronason from selling equipment outside of its assigned territory even when approached directly by customers (also known as passive sales).
The Authority resolved its investigation by accepting the settlement terms offered by ECI-JCB and Kellys.
The Authority was satisfied that the undertakings offered by ECI JCB and Kellys addressed its concerns and therefore decided to resolve its investigation without the need for court proceedings.
Relevant provision
Section 4 of the Competition Act 2002
Article 101 of the Treaty on the Functioning of the European Union
Return to Closed Investigations