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The EU Court of Justice considers that a provision in an agreement between a brewery and a licensee of a public house whereby the licensee is required to purchase a minimin amount of beer each year is not restricting competition by its object (Delimitis)

Case C-234/89 Stergios Delimitis v Henninger Bräu AG A beer supply agreement is prohibited by Article 85(1) of the EEC Treaty if two cumulative conditions are met. The first is that, having regard to the economic and legal context of the agreement at issue, it is difficult for competitors who could enter the market or increase their market share to gain access to the national market for the distribution of beer in premises for the sale and consumption of drinks. The fact that, in that market, the agreement in issue is one of a number of similar agreements having a cumulative effect on competition constitutes only one factor

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