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| Version 0 | Version 1 |
|---|---|
| Pub sector given all-clear by OFT | Pub sector given all-clear by OFT |
| (about 1 hour later) | |
| The Office of Fair Trading (OFT) says it has found no evidence that ties between pub companies and landlords are harming competition in the pub sector. | The Office of Fair Trading (OFT) says it has found no evidence that ties between pub companies and landlords are harming competition in the pub sector. |
| Its inquiry followed a super-complaint from the Campaign for Real Ale (Camra) over so-called "beer ties". | |
| Camra said pubs were suffering because of high rents and deals that obliged landlords to take beer supplies only from pub owners. | Camra said pubs were suffering because of high rents and deals that obliged landlords to take beer supplies only from pub owners. |
| But the OFT said there was "generally effective" competition between pubs. | But the OFT said there was "generally effective" competition between pubs. |
| It said it did not consider that supply ties contributed to higher prices. | It said it did not consider that supply ties contributed to higher prices. |
| 'Consumer benefit' | |
| "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," said Simon Williams, senior director of the OFT's goods group. | "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," said Simon Williams, senior director of the OFT's goods group. |
| "Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees. | "Pub-owning companies are not therefore protected from competition by virtue of the supply ties agreed with their lessees. |
| "We understand that our response to Camra comes at a difficult time for the industry, but the evidence indicates that consumers benefit from a good deal of competition and choice within this sector." | "We understand that our response to Camra comes at a difficult time for the industry, but the evidence indicates that consumers benefit from a good deal of competition and choice within this sector." |
| The OFT added that the issues raised in the super-complaint "do not warrant further assessment", and that it would be taking no further action. | |
| News of the OFT's findings sent shares in pub companies soaring on the London Stock Exchange. Shares in Enterprise Inns jumped 17.6% to 140p while Punch Taverns climbed 11.5% to 94.5p. |