UK brewing and pub retailing markets: Allied Domecq

United Kingdom

The Commission has invited interested parties to submit their observations on the three standard forms of leases between various companies in the Allied Domecq Group and a number of tenants. Under the terms of the leases, the tenants are receiving the benefit of premises, equipment and fittings so as to be fully fitted out as tied public houses in the UK. Allied Domecq has asked the Commission to confirm that its leases neither adversely affect competition under Article 85 of the Treaty of Rome, nor abuse a dominant position in the market under Article 86. The Commission has analysed the structure of the UK brewing and pub retailing markets. It has also analysed the agreements looking at the beer tie, the rent, the discounts and countervailing benefits.