Irish Competition Authority Decisions

1. Notification was made by Dunnes Stores (Limerick) Ltd 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 leases between Dunnes Stores (Limerick) Ltd and tenants at Sarsfield Shopping Centre.

2. The notification concerns the lease of shop units in the Sarsfield Shopping Centre, Honan's Quay, Limerick between Dunnes Stores (Limerick) Ltd as Landlord and 6 tenants at the shopping centre.

3. Dunnes Stores (Limerick) Ltd is engaged in the business of trading as a supermarket and the letting of shop units at the Sarsfield Shopping Centre. The tenants are engaged in various retail and service activities at the centre.

4. The standard shopping centre lease notified was in draft form. The restricted user clauses in this lease are as follows:-

(a) Under clause 4.20 the tenant covenants

"Not to use or occupy the demised premises or any part thereof .....for any other purpose than the retail trade or business of nor in any manner inconsistent with such user or occupation.........."

(b) Under clause 4.17 the tenant covenants

(a) "Not to assign underlet or part with the possession .........of part only of the demised premises.

(b) Not to assign underlet or part with the possession .........of the whole of the demised premises without the consent in writing of the Landlord first obtained which consent will not be unreasonably witheld.....

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

Dunnes Stores (Limerick) Ltd has notified the Permitted User attaching to each tenant under clause 4.20 whereby each tenant is restricted to particular specified trading or service activities.

5. The Authority considers that Dunnes Stores (Limerick) Ltd and the tenants are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

6. The Authority considers that the notified agreements, and their restricted and exclusive user clauses and the other restrictive clauses and obligations, do 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 agreements between Dunnes Stores (Limerick) Ltd and the tenants do 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 agreements between Dunnes Stores (Limerick) Ltd and the tenants in relation to the leases of premises at Sarsfield Shopping Centre, Limerick notified under Section 7 on 30 September 1992 (notification no. CA/880/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

13 October 1993