A drinks wholesaler has alleged before the High Court that a brewing firm is abusing its dominant position in the draught lager market by refusing to supply it with kegs of Heineken.

Ballina Mineral Water complained the refusal of Heineken Ireland of Cork to supply it with the kegs amounted to discrimination and put it at an unfair disadvantage against other wholesale competitors in Westport, Boyle and Longford that are supplied. No reason or justification was given for this refusal, it said.

Ballina Mineral Water says Heineken, by applying dissimilar conditions to equivalent transactions with other trading parties, has put it at a competitive disadvantage and, as a result, it has suffered loss and damage. It is seeking damages not exceeding €30,000.

Heineken denies it is or has been guilty of abuse of a dominant position, the existence of which is also denied. It also rejects submissions of loss or damages allegedly suffered by Ballina Mineral Water. When the action was first tried in Cork Circuit Court in February this year, the trial judge concluded there had been an abuse and awarded €7,500 damages against Heineken. The latter appealed the finding in High Court proceedings. Yesterday, the High Court was told Heineken had a 37 to 38 per cent share of the draught lager market in Ireland and the lager was a "must have" for any wholesaler.

Up to recently, it was stated, Ballina Mineral Water had been obtaining its supplies of Heineken kegs through a "back-door route". A publican had ordered sufficient supplies for both himself and the company which Ballina Mineral Water then sold on at a margin to other publicans.

But after winning its case in the Circuit Court, Ballina Mineral Water has been receiving its supplies directly from Western Beverages in Galway.

The action before Mr Justice Kearns continues today.