Irish Competition Authority Decisions

1. Notification was made by Irish Life Assurance Plc 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 Eason & Son Limited.

2. The notification concerns the lease of a shop and basement in Block Number IV of Irish Life Centre, Lower Abbey Street, Dublin between Irish Life Assurance Plc as lessor and Eason & Son Limited as lessee.

3. Irish Life Assurance Plc is engaged in the business of insurance, assurance and fund and property management and is the owner and landlord of the Irish Life Centre. Eason & Son Limited is engaged in the business of booksellers, newsagents and stationers.

4. The notified lease was made on 1 August, 1979 for a term of 35 years from that date. The restricted user clauses in the lease are as follows:

(a) Under clause B.13(a) the tenant covenants with the landlord

"Not to use the premises for any purpose other than that of retail sale of newspapers, magazines, books, stationery and greeting cards and also records, toys, confectionery, cigarettes and all other items normally stocked in Eason shops, and not to use or permit or suffer the premises to be used for any other purpose whatsoever".

(b) Under clause B.26 the tenant covenants with the landlord:

"(a) Not to assign or underlet or part with possession of the whole of the premises without the previous written consent of the lessor which shall not be unreasonably withheld.

"(b) Not to assign transfer charge underlet or part with possession of any part of the premises".

(c) Under clause C(d) the Lessor covenants

"Not during the term to carry on or permit to be carried on by others in or upon the adjoining premises of the Lessor or elsewhere in the Main Mall ........the trade or business of retail sale of newspapers, magazines, books, stationery and greeting cards......"

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

5. The Authority considers that Irish Life Assurance Plc and Eason & Son Limited 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 Irish Life Assurance Plc and Eason & Son Limited 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 Eason & Son Limited in relation to the lease of the premises at the Irish Life Centre, Lr. Abbey St., Dublin 1 notified under Section 7 on 30 September 1992 (notification no. CA/743/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

13 October 1993