Irish Competition Authority Decisions

1. Notification was made by Quinnsworth 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 The Park Shopping Centre Ltd and Quinnsworth.

2. The notification concerns the lease of the Anchor Unit at The Park Shopping Centre, Prussia Street, Dublin 7 between The Park Shopping Centre Ltd as Landlord and Quinnsworth as tenant.

3. The Park Shopping Centre Ltd is engaged in the letting of shop units at the Park Shopping Centre. Quinnsworth trades as a supermarket with outlets throughout the State including the outlet at the shopping centre.

4. The notified shopping centre lease was executed on 5 July 1988 for a period of 1000 years from 1 November 1987 between The Park Shopping Centre Ltd and Light Bite (now Quinnsworth). The restricted user clauses in the lease are as follows:

(a) Under Clause 3.26.1 the tenant covenants as follows:

"Not without the prior consent in writing of the Landlord or its agent thereunto lawfully authorised to use or to permit or suffer or allow the Demised Unit or parts thereof to be used for any purpose other than that as set forth in Part II of the First schedule hereto and for no other purpose or purposes whatsoever .................. PROVIDED ALWAYS AND IT IS HEREBY AGREED AND DECLARED that upon any application by the Tenant or any Under-tenant of the Tenant for the liberty to alter or change the aforesaid permitted user of the Demised Unit the Landlord shall not unreasonably withhold its consent to such proposed change of user ........."

(b) Part II of the First Schedule reads as follows:

"PERMITTED USER "As a Supermarket and/or Departmental Shop or store and/or Retail Shop or Store including the sale or baking of food or food products of all kinds trading by way of licensing and franchising and making concessions and for the sale of Intoxicating Liquor for consumption off the premises but notwithstanding the foregoing being substantially for the retail sale of grocery goods."

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

5. The Authority considers that Quinnsworth and The Park Shopping Centre 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 The Park Shopping Centre Limited and Quinnsworth, does not offend against Section 4 (1) of the Competition Act 1991.

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 The Park Shopping Centre Limited and Quinnsworth in relation to the lease of premises at The Park Shopping Centre, Prussia Street, Dublin 7, notified under Section 7 on 30 September 1992 (notification no. CA/604/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority.

Des Wall

Member

13 October 1993