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Cite as: [1993] IECA 134

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Mall Holdings Ltd/Bookneeds [1993] IECA 134 (13th October, 1993)

Notification No: CA/235/92E - Mall Holdings Ltd/Bookneeds Ltd

Decision No: 134

Introduction

1. Notification was made by Bookneeds Limited on 30 September, l992 with a request for a certificate under Section 4(4) of the Competition Act, l99l or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of an agreement relating to a lease between Mall Holdings Ltd and Bookneeds Ltd.

The Facts

(a) Subject of the Notification

2. The notification concerns the lease of shop unit No. 23 at the Crescent Shopping Centre, Dooradoyle, Limerick, and a unit in the Parkway Shopping Centre, Dublin Road, Limerick between Mall Holdings Ltd as landlord and Bookneeds Ltd as tenant.

(b) The parties involved

3. Bookneeds Ltd trades as a Newsagent with outlets in the Crescent Shopping Centre and the Parkway Shopping Centre, both in Limerick. Mall Holdings Ltd is engaged in the letting of shop units at the Crescent Shopping Centre.

(c) The notified arrangements

4. No lease was notified. The agreement notified is contained in a copy of an extract from a letter from Mall Holdings Ltd dated 3 November 1987 addressed to a Mr. Mc Donagh at Unit 29 Crescent Shopping Centre which states

".....I wish to confirm the following:-

1. ........

2. That Mall Holdings Ltd will not permit another Retail Newsagency within the Crescent Shopping Centre.

3. That with regard to your Unit at the Parkway Shopping Centre it is not our intention to have a second Newsagency in that Centre...."

Assessment - The Applicability of Section 4(1)

5. The Authority considers that Bookneeds Ltd and Mall Holdings Ltd are undertakings and that the notified agreement 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 provision 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 Mall Holdings Ltd and Bookneeds Ltd does not offend against Section 4(1) of the Competition act, l99l.

The Certificate

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 Mall Holdings Ltd and Bookneeds Ltd in relation to the lease of premises at the Crescent and Parkway shopping centres, notified under Section 7 on 30 September 1992 (notification no. CA/235/92E), does not offend against section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

13 October 1993