An inquiry into the legal tie between pub companies and their tenants in the UK has been reopened by the country’s Office of Fair Trading (OFT).
The competition watchdog said late last week that it would open a consultation on the so-called ‘beer tie’.
Go deeper with GlobalData
Its decision gives those who hold concerns about the tie another chance to air grievances and present evidence to back up their complaints.
Critics blame the beer tie for exacerbating pressure on pubs during the economic downturn.
The OFT said it has reopened its inquiry to avoid costly litigation proceedings with the Campaign for Real Ale (CAMRA), which had lodged an appeal against the watchdog’s ruling last year that the tie does not harm competition in the pub and beer market.
CAMRA made a ‘super complaint’ to the OFT last year, invoking a statutory 90-day probe of the beer tie.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThere will be no broadening of the scope of the inquiry, however.
“The OFT’s examination of the beer tie following CAMRA’s super-complaint will continue to focus on whether effective competition is delivering choice and value for consumers,” said the regulator.
