22/10/2009 - Watchdog dismisses Camra complaint
There was no evidence that Britain's pub companies were compelling tenants to buy drinks from them, a competitions watchdog has ruled.
The Office of Fair Trading (OFT) gave the industry the all-clear following a "super complaint" the alleged practice of so-called 'beer ties' was harming competition for consumers.
Fears that high rents and beer ties were making good landlords go out of business were filed to the watchdog in the first ever complaint from The Campaign for Real Ale (Camra).
But the OFT said it found "generally effective competition between pubs" and would not be taking further action. The OFT dismissed Camra concerns that supply ties were protecting pub-owning companies, leading to higher beer prices and less choice for consumers.
In response to Camra's complaints over pub rent calculations, the OFT said while it had received a number of submissions from worried pub lessees, its work was to focus on competition issues and the impact on consumers.
Simon Williams, senior director at the OFT, said: "Any strategy by a pub-owning company which compromises the competitive position of its tied pubs would not be sustainable, as this would result in a loss of sales.
"Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees."
Copyright © Press Association 2009
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