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 Quinnsworth and Revoclife Limited.

2. The notification concerns the lease of shop unit No.3 in the shopping centre at Sraid an Chumainn, Ballinasloe, Co. Galway, between Quinnsworth as Landlord and Revoclife Ltd as tenant.

3. Quinnsworth trades as a supermarket with outlets throughout the State. Revoclife Ltd trades as a newsagent at unit 3 of the shopping centre.

4. The notified shopping centre lease is in draft form and is for a term of 200 years from 1 January 1991. The restricted user clauses in the lease are as follows:

(a) Under Clause 4.27 the tenant covenants with the landlord

"Not to assign transfer mortgage charge or underlet hold in trust for another or part with the possession or occupation of the Demised Unit or any part thereof .................. BUT SO THAT NOT WITHSTANDING the foregoing the Landlord shall subject to sub-clause 7.3. hereof not unreasonably withhold its consent to an assignment transfer or underletting of the entire of the Demised Unit .........."

(b) Under Clause 4.28.2 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 under the heading Permitted User reads:

"As a shop for a Newsagent including for the sale of confectionery and other items normally associated with a Newsagency but specifically to exclude any items of groceries"

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

5. The Authority considers that Quinnsworth and Revoclife 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 Quinnsworth and Revoclife Ltd, 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 Quinnsworth and Revoclife Limited, in relation to the lease of a premises at Sraid an Chumainn, Ballinasloe, Co. Galway, notified under Section 7 on 30 September 1992 (notification no. CA/613/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority.

Des Wall

Member

13 October 1993