The National Association of British Market Authorities (NABMA) is celebrating an important high court ruling announced last week reinforcing market franchise rights and the renowned six-and-two-thirds-miles rule.
The decision was in the Leeds Council v Watkins & Whiteley case which granted Leeds permanent injunctions in respect of two car boot sales and rejected the argument that the use of market franchise rights runs contrary to competition law.
Under market franchise rights, a market operator can take action in respect of another market within six-and-two-thirds miles, but before this case, the rule had been based on using the operator's own market and not other markets or boot sales.
The judge, Justice Peter Smith concluded: 'The council can enforce its rights within six-and-two-thirds of any market that it licences within the area of its exclusive franchise.' The ruling has been welcomed by NABMA. 'I am delighted with the outcome,' said NABMA president John Ahern. 'Market franchise rights are vitally important to NABMA and its members and I welcome the rulings made by the judge.' The ruling is all the more relevant to London's wholesale sector given the Saphir review of London markets and proposed changes to the six-and-two-thirds-mile rule.
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