Lotto "is not abusing dominant position"

THE National Lottery is not abusing a dominant position through its agreement with retailers governing the sale of tickets, the Competition Authority has ruled.

The authority said that the National Lottery was not preventing retailers from selling other lottery tickets. However, an authority spokesman said that this did not refer to British lottery tickets.

The authority was asked to investigate a complaint made by Rehab Lotteries.

It alleged that the National Lottery agreement with retailers which states "an agent . . . will sell National Lottery tickets only at the authorised premises" was being interpreted as meaning that retailers selling National Lottery products could not sell any other lottery tickets.

The authority said that it had now received clarification on the matter.

The Lottery told the authority that its understanding of this condition was that "an agent must only sell National Lottery products from the premises authorised by the National Lottery".

According to the Lottery the provision prevents agents from selling National Lottery products door to door or from some location other than that specified.

"The Competition Authority is therefore satisfied that National Lottery agents are free to sell other lottery tickets from their premises and that the question of an abuse of a dominant position does not arise," it said.

The authority said in the past the National Lottery had obliged its retail agents not to sell other lotteries' tickets but this was prohibited in 1990, because it was anti competitive.

Mr John McGuire, managing director of Rehab Lotteries, said Rehab welcomed the authority's statement that retailers were free to sell other lottery tickets.

However, he said Rehab was very disappointed that the authority had not asked the National Lottery to change the clause in the agreement with retailers.

Mr McGuire told The Irish Times it was causing confusion among retailers, who when asked if they would sell Rehab tickets, would point to the clause.

"We believe it would be much clearer if the clause said, an agent may not sell National Lottery tickets, other than at an authorised place," Mr McGuire said. "To us, the statement is anti competitive."

A spokesman for the Irish National Retailers Association, which represents 1,500 outlets in the Republic, including garages, said he did not feel the clause was causing confusion among his members.

A National Lottery spokeswoman welcomed the authority's ruling and said the organisation believed the clause was clear.