The OFT has concluded that no evidence exists to back up CAMRA’s super-complaint about unfair supply ties.

In response to The Campaign for Real Ale’s (CAMRA) super-complaint about supply ties in the pub sector, the Office of Fair Trading (OFT) has concluded that ties between pub companies and landlords were not harming competition.

The OFT’s inquiry into the pub sector followed the super-complaint from CAMRA, which suggested that unfair tie arrangements between pub-owning companies and pub-owning company landlords protect the companies from competition.

The OFT has concluded that there is no evidence to suggest that “supply ties are resulting in competition problems that are having an adverse impact on consumers” and there is generally effective competition within the industry.

Simon Williams, Senior Director of the OFT’s Goods group, 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.”

CAMRA said it would appeal to the government to refer the case to the Competition Commission.

Mike Benner, CAMRA’s Chief Executive, said: “We do not accept that there is sufficient competition between pubs or adequate consumer benefit from competition and choice within this sector.

“It is difficult to see how the OFT can argue that competition is working well in the pubs sector when demand is falling, yet prices are rising. Urgent action is now required by Government to stem the flow of pub closures.”

The OFT has decided that the super-complaint does not warrant further assessment and it will be taking no further action.