Irish Competition Authority Decisions

1. Notification was made by Power Leisure 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 a lease between V.0'R Investments Limited and Power Leisure Limited.

2. The notification concerns the lease of a premises at shop Unit 1, Castletymon Shopping Centre, Tallaght, Co. Dublin between V.O'R Investments Limited as landlord and Power Leisure Limited as tenant.

3. V.O'R Investments Limited was the landlord of the premises at unit 1 of Castletymon Shopping Centre. Power Leisure Limited (trading as Paddy Power) is one of the largest bookmakers in the State with 71 outlets, including unit 1 at the shopping centre.

4. The notified shopping centre lease was made on 29 December l988 for a period of 35 years from 1 April l988. The restricted user clauses in the lease are as follows:

(a) Under Clause 4(13) the tenant covenants "To use the demised premises as a licensed Betting Office only and for no other purpose whatsoever without the consent of the Landlord and in particular not to use or permit or suffer the demised premises or any part thereof to be used for the purpose of a residence or dwellinghouse."

(b) Under clause 4(19) 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 possession of the whole of the demised premises without the licence in writing of the Landlord first obtained which licence shall not be unreasonably withheld PROVIDED ALWAYS ..."

(c) Power Leisure Ltd has also advised of an earlier covenant between the landlords and the tenant that it "....will not at any time permit or allow any unit of the Castletymon Shopping Centre to be used as a Turf Accountants Office, save for Unit 1 purchased by the Purchaser by virtue of the Deed of Transfer, dated 14 August l987" and that"...... in the event of the Castletymon Shopping Centre being expanded and/or further developed... will not permit or allow any further units which may be built in the shopping centre or on the retained land to be used as a Turf Accountants Office."

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

5 The Authority considers that Power Leisure Limited and V.O'R Investments 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, l993 in respect of shopping centre leases (Iris Oifigiuil l0 September l993, pp. 665-667). The Authority therefore considers that the notified agreement between V.O'R Investments Ltd and Power Leisure Limited, 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 V.O'R Investments Ltd and Power Leisure Limited in relation to the lease of a premises in Castletymon Shopping Centre, Tallaght, Dublin 24 notified under Section 7, on 30 September, l992 (notification no CA/314/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993