Irish Competition Authority Decisions

1. Notification was made by Peter Mark on 30 September, 1992 with a request for a certificate under Section 4(4) of the Competition Act, 1991 or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of a lease between Irish Life Assurance plc and Peter Mark.

2. The notification concerns the lease of unit numbers 44 and 45 of the Ilac Shopping Centre, Dublin 1 between Irish Life Assurance plc as Landlord and Peter Mark as tenant.

3. Peter Mark is an unlimited company carrying on the business of hairdressing with approximately 48 outlets in the State including the Ilac Shopping Centre. Irish Life Assurance plc is engaged in insurance, assurance and the management of investments including the letting of shop units at the Ilac Shopping Centre.

4. The notified lease was made on 19 August, 1987 for a term of 35 years from 1 November, 1981. The restricted user clauses in the lease are as follows:

(a) Under clause 4.25 the tenant covenants with the landlord:

"Not to assign transfer or underlet or part with the possession or occupation of the Demised Unit or any part thereof or suffer any person to occupy the Demised Unit or any part thereof as a licensee or as concessionaire But So That Not Withstanding the foregoing the Landlord shall subject to clause 7.4 hereof not unreasonably withhold its consent...."

(b) Under clause 4.26.1 the tenant covenants with the landlord:

"Not without the prior consent in writing of the Landlord ...... to use or to permit or suffer or allow the Demised Unit or any part or parts thereof to be used for any purpose other than as set forth in Part II of the First Schedule hereto and for no other purpose or purposes whatsoever ...... "

Part II of the First Schedule defines the Permitted User as

"As a hairdressers, together with the sale of hair beauty and associated products".

In addition, there are a number of other standard restrictive covenants and obligations in the lease.

5. The Authority considers that Peter Mark and Irish Life Assurances plc are undertakings and that the notified lease is an agreement between undertakings. The agreement has effect within the State.

6. The Authority considers that the notified agreement, and its restricted and exclusive user clauses and the other standard restrictive clauses and obligations, does not have the object or effect of preventing, restricting or distorting competition in trade in any goods or services in the State or in any part of the State, for the reasons given in the Notice of the Authority of 2 September 1993 in respect of shopping centre leases (Iris Oifigiuil 10 September 1993 pp.665-667). The Authority therefore considers that the notified agreement between Peter Mark and Irish Life Assurances plc does not offend against section 4(1) of the Competition Act, l99l.

7. The Competition Authority has issued the following certificate:

The Competition Authority certifies that in its opinion, on the basis of the facts in its possession, the agreement between Irish Life Assurance plc and Peter Mark in relation to the lease of the premises at the Ilac Shopping Centre, Dublin 1 notified under Section 7 on 30 September 1992 (notification no. CA/1013/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

13 October 1993