Press Release

05 February 2010

EDWIN COE SECURE A RE-OPENING OF THE OFT INQUIRY INTO UK PUBS FOR CAMRA

The OFT has agreed to re-open the inquiry into the UK pub industry following an appeal to the Competition Appeal Tribunal against the OFT's response of 22 October to its super-complaint under the Enterprise Act. Leading class action practice Edwin Coe prosecuted the appeal on behalf of CAMRA.

The firm previously acted for the Association of Convenience Stores in its successful challenge of the OFT decision not to refer the grocery retail trade to the Competition Commission. That challenge brought about the recently completed Grocery Inquiry and the contentious proposal for a Supermarket Ombudsman.

David Greene, partner at Edwin Coe, comments on the situation.

"The BEC Select Committee, which reported last year, clearly saw problems in the relationship between the pub companies and the lessees. Thousands of pubs close each year and the Select Committee were critical of the OFT. The super-complaint was launched by CAMRA on behalf of consumers on the back of this report. The OFT initially rejected the complaint despite the words of the Select Committee ringing in their ears."

"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 underinvestment in the nation's pubs."

"On behalf of thousands of corner shop owners we made a similar challenge in relation to the grocery retail trade when the OFT refused to investigate. Under challenge by us the OFT did change its mind."

"We are very pleased that agreement has been reached between CAMRA and the OFT so that the inquiry is re-opened and a fresh consultation is to be undertaken."

ENDS

Note: Edwin Coe is the leading class action firm in London and has acted for many groups; shareholders in Railtrack, Northern Rock and Langbar; 34,000 corner shop proprietors in a competition inquiry; British victims of the Lockerbie bomb; London cabbies, British property owners in Spain the victims of local planning frauds and British time share owners.

CAMRA, the Campaign for Real Ale, is an independent consumer organisation which campaigns for real ale, real pubs and consumer rights. CAMRA currently has over 107,000 consumers as members.

CAMRA's super-complaint, 'A Fair Share for the Consumer', was published in July and can be viewed at www.camra.org.uk/supercomplaint

CAMRA's super-complaint centred on the need to reform beer tie arrangements to prevent large companies exploiting tie arrangements that prevent tied publicans from buying beer on the open market at fair prices. CAMRA argued that the wholesale prices paid by tied publicans are considerably higher, around £20,000 per year for an average pub, than would prevail in a competitive market. The lack of competition, particularly in areas dominated by tied pub companies, mean that consumers pay higher prices, and suffer a reduced quality of experience and a restricted range of products. CAMRA has calculated that if beer prices had only risen in line with inflation since 1990 then collectively consumers would be better off by £2.5 billion a year.

For further information on this news release, please contact:

Edwin Coe, 2 Stone Buildings, Lincoln’s Inn, London WC2A 3TH Tel: 020 7691 4000 www.edwincoe.com