Irish Competition Authority Decisions

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Cite as: [1993] IECA 160

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National Trust and Investment Co Ltd / Tenants of Monastery S.C. [1993] IECA 160 (3rd December, 1993)

Notification No: CA/231/92E - National Trust and Investment Company Limited/Tenants of Monastery Shopping Centre.

Decision No: 160.

Introduction

1. Notification was made by National Trust and Investment Company Limited on 30 September, 1992 with a request for a certificate under Section 4(4) of the Competition Act, 1991 in respect of a standard lease between National Trust and Investment Company Limited and its tenants.

The Facts

(a) Subject of the notification

2. The notification concerns a standard lease relating to the shop units in the Monastery Shopping Centre, Clondalkin, Dublin 22 between National Trust and Investment Company Limited as landlord and tenants of the shopping centre.

(b) The parties involved

3. National Trust and Investment Company Ltd is the owner and landlord of the Monastery Shopping Centre. The tenants are engaged in various trading activities at the centre.

(c) The notified arrangements

4. The standard lease notified which relates to unit 6 contains the following restricted user clauses in the lease are as follows:

(a) Under clause E(24) and (25) the tenant covenants

"(24) NOT TO ASSIGN OR UNDERLET PART. Not to assign, charge or underlet a part only of the demised unit in any circumstances and not to part with or share possession of either the whole or part of the demised unit except on such assignment or underletting of the whole as hereafter authorised.

(25) NOT TO ASSIGN THE WHOLE WITHOUT CONSENT. Not to assign or underlet the whole of the demised unit except with the previous consent in writing of the Landlord, such consent not to be unreasonably withheld or delayed ....."

(b) Under clause F(27) the tenant covenants "....to...use ....the demised unit for the purpose of the sale of Electrical goods and spares therof....."

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

Assessment - The Applicability of Section 4(1)

5. The Authority considers that National Trust and Investment Company Limited and the tenants 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 of 10 September, 1993, pp.665-667). The Authority therefore considers that the standard agreement notified between National Trust and Investment Company Limited and its tenants 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 standard agreement between National Trust and Investment Company Limited and its tenants in relation to the lease of the premises at Monastery Shopping Centre, Clondalkin, Dublin 22 notified under Section 7 on 30 September 1992 (notification no. CA/231/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993