Irish Competition Authority Decisions

1. Notification was made by The Governor and Company of the Bank of Ireland (Bank of Ireland) 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 Royal Liver Trustees Ltd (Royal Liver) and Bank of Ireland.

2. The notification concerns the lease of a shop unit at 1 Douglas Shopping Centre, Douglas, Co. Cork between Royal Liver as lessor and the Bank of Ireland as lessee.

3. The Bank of Ireland is the second largest commercial bank in the State with a network of 290 branches in Ireland including the branch located at Douglas Shopping centre. Royal Liver Trustees Ltd is the trustee and investment holding company of the Royal Liver Friendly Society whose registered office is in Liverpool.

4. The notified shop lease was executed on 8 February 1984 for a period of 35 years from 7 December 1983. The restricted user clauses in the lease are as follows:-

(a) Under clause 2 (18) (a) the lessee covenants

"not to use or permit the demised premises or any part thereof to be used for any purpose other than a bank".

(b) Under clause 6 the lessor covenants

"not to sell, lease, sub-let or in any way or manner grant a right to carry on the business of (a) banking (b) Building Society and/or savings bank to any other person, persons, companies, organisations or groups in any of the other premises contained in the said Shopping Centre or in any extension to any of the premises in the said Shopping Centre..."

(c) Under clause 2 (20) the lessee covenants

"Not to assign underlet or part with possession ....... of the demised premises or any part thereof ...... PROVIDED THAT as regards the demised premises as a whole and not in respect of any less part the Lessee shall be at liberty subject to the following conditions to assign or underlet the whole of the demised premises upon obtaining the prior consent in writing of the Lessor such consent not to be unreasonably withheld ......

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

5. The Authority considers that the Bank of Ireland and Royal Liver Trustees Ltd 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 Bank of Ireland and Royal Liver 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 Royal Liver Trustees Ltd and the Governor and Company of the Bank of Ireland in relation to the lease of the premises at 1 Douglas Shopping Centre, Douglas, Co. Cork notified under Section 7 on 30 September 1992 (notification no. CA/336/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

13 October 1993