Undefined Headline

May 20 2009 by Aranda Garrard, The Journal

SUMMARY

IN its summary, the Business and Enterprise Select Committee reads: “Our call for evidence gave us two irreconcilable pictures of the industry.

The first presented a picture in which pubcos operating the tie were able to give their lessees considerable support and in which the admittedly higher costs of tied products were offset by lower rental and extra support and services.

“The second picture, which came from individual lessees and from campaign groups, was of an industry in which the higher costs imposed by ties meant that lessees were at a disadvantage of free-of-tie competitors and pubcos used their superior bargaining power to exploit lessees, in many cases failing to carry out their contractual duties while refusing to give lessees in difficulties any leeway.

Evidence was submitted by lessees of many pubcos and we were concerned by the consistency of their stories.”