OFT to re-examine CAMRA pubco complaint

February 5, 2010: The Office of Fair Trading (OFT)is to reconsider the Campaign for Real Ale's (CAMRA) super-compliant about anti-competitive behaviour by large pubcos, conducting an open public discussion before reaching a final decision.

CAMRA’s appeal is now stayed until August 1 to enable the OFT to consider further evidence and conduct the public consultation.

CAMRA’s super-complaint argued that anti-competitive practices are inflating pub beer prices by around 50 pence a pint, restricting consumer choice and leading to chronic under-investment in the nation’s pubs.

CAMRA chief executive, Mike Benner, said: "We are delighted that the OFT has responded to our appeal by agreeing to conduct an open consultation and I encourage all parties to use this opportunity to submit further evidence of anti-competitive practice. The consultation will lead to a new and final decision from the OFT.

"We are hopeful that on re-examination of the pubs market the OFT will decide to act against anti-competitive behaviour in order to deliver a fair deal for consumers. CAMRA looks forward to working with the OFT to deliver reform of the beer tie so that the pub market works in the interests of consumers."

CAMRA’s fundraising appeal for the reform of the beer tie, which has raised more than £8,000 since January, will be suspended during the consultation period. The funds will be put towards CAMRA’s legal fees. CAMRA reserves the right to re-activate its appeal should it be dissatisfied with the OFT’s final decision following the consultation.

Steve Corbett, spokesman for the Fair Pint campaign, said: “The OFT's decision to look at the issue of the beer tie again is good news for tied landlords. We believe that the decision is an admission that the initial response to the CAMRA super-complaint was not carried out correctly. The OFT’s response showed that they had totally failed to understand how the tied pub sector works and many of the assertions in the report were questionable.

“Fair Pint will be presenting new information to the OFT and we would urge publicans and brewers to come forward with evidence of anti-competitive practices within the sector.

“This is a massive victory for CAMRA and we welcome that fact that CAMRA are leaving the possibility of further legal action open if the OFT’s final decision is as inadequate as the first.”