Stergios Delimitis v Henninger Bräu AG
A beer supply agreement tying a pub to a brewery restricts competition only if, in the context of similar networks of agreements, it forecloses access to the market and makes a significant contribution to that effect.
Facts
Mr Delimitis took a lease of a pub from a German brewery, Henninger Bräu, under which he was required to buy beer and soft drinks only from the brewery or its subsidiaries. When the lease ended, the brewery claimed sums due under the agreement, and Mr Delimitis argued that the agreement was void under the competition rules. The German court referred questions to the Court of Justice.
Legal principle
The Court of Justice held that a beer supply agreement does not have the object of restricting competition, but that its effects must be assessed in the light of the economic and legal context, including the existence of similar agreements. Such an agreement is prohibited only if, first, having regard to the economic and legal context, it is difficult for competitors to gain access to the market or to increase their market share, because of a network of similar agreements, and, second, the agreement in question makes a significant contribution to the sealing off of the market brought about by the totality of those agreements. The case is the leading authority on the cumulative effect of networks of vertical agreements.
Related cases on restrictions by object and effect, and exemption
- Coty Germany GmbH v Parfümerie Akzente GmbH Case C-230/16, EU:C:2017:941
- European Superleague Company SL v FIFA and UEFA Case C-333/21, EU:C:2023:1011
- Generics (UK) Ltd v Competition and Markets Authority Case C-307/18, EU:C:2020:52
- GlaxoSmithKline Services Unlimited v Commission Joined Cases C-501/06 P and others, [2009] ECR I-9291
- Groupement des cartes bancaires (CB) v Commission Case C-67/13 P, EU:C:2014:2204
- Meca-Medina and Majcen v Commission Case C-519/04 P, [2006] ECR I-6991
- Pierre Fabre Dermo-Cosmétique SAS v Président de l'Autorité de la concurrence Case C-439/09, [2011] ECR I-9419
- Ping Europe Ltd v Competition and Markets Authority [2020] EWCA Civ 13
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