Irish Competition Authority Decisions

1. Notification was made by Seamus Canty on 29 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 a lease between Francis Spaight and Sons Ltd and Seamus Canty.

2. The notification concerns the lease of shop unit numbers 13 and 15 at Spaights Shopping Centre, Henry Street, Limerick between Francis Spaight and Sons Ltd as Landlord and Seamus Canty as tenant.

3. Francis Spaight and Sons Ltd is engaged in the letting of shop units at Spaights Shopping Centre. Seamus Canty trading as "Fancee Dat" is engaged in a newsagency and confectionery business at the centre.

4. The notified lease was made on 12 July, l990 for a period of 35 years from l December, l989. The restricted user clauses in the lease are as follows:

(a) Under clause 3.16 the tenant covenants with the landlord

"Not to use or permit the demised premises or any part thereof to be used for any purpose other than a Newsagent, Sweets and Confectionery shop...."

(b) Under clause 3.18 the tenant covenants with the landlord

"Not to assign transfer or underlet or part with the possession or occupation of the demised premises or any part thereof or suffer any person to occupy the demised premises or any part thereof as a licensee or as a concessionaire but so that notwithstanding the foregoing the Landlord shall not unreasonably withhold its consent..."

(c) Under clause 4.1 the landlord covenants with the tenant

"...that the tenant shall, insofar as Spaights Shopping Centre is concerned, have the exclusive right to carry on the business of Confectionery, Newsagent and Tobacconist, provided however that one supermarket maybe allowed to trade in the centre in Sweets and Confectionery."

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

5. The Authority considers that Francis Spaight and Sons Limited and Seamus Canty 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 Francis Spaight and Sons Limited and Seamus Canty does 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 agreement between Francis Spaight and Sons Limited and Seamus Canty in relation to the lease of the premises at Spaights Shopping Centre, Henry St, Limerick notified under Section 7 on 29 September 1992 (notification no. CA/197/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

13 October 1993