Irish Competition Authority Decisions

1. Notification was made by Quinnsworth 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 a lease between Trikkala Ltd and Quinnsworth.

2. The notification concerns the lease of the supermarket and warehouse units at Janelle Shopping Centre, Finglas Rd, Dublin 11 between Trikkala Ltd as Landlord and Quinnsworth as tenant.

3. Trikkala Ltd is involved in the letting of shop units at the Janelle Shopping Centre. Quinnsworth trades as a supermarket with outlets throughout the State including the outlet at Janelle Shopping Centre.

4. The notified shopping centre lease, which is in draft form, is for a term of 10,000 years from 1 April 1987. The restricted user clauses in this lease are as follows:

(a) Under Clause 3.2 (3) the tenant covenants "To keep the demised premises for the purpose of a supermarket for the retail sale of foods and goods customarily sold in supermarkets in Ireland and as a general retail store (including for the sale of hardware and drapery) and also including for the sale for consumption off the premises of intoxicating and alcoholic and non-alcoholic drinks PROVIDED ALWAYS not without the Landlord's prior consent in writing, which shall not be unreasonably withheld, to use or permit or suffer the same or any part thereof to be used for any other purpose."

(b) Under para. 14 of the Third Schedule to the Agreement "The Landlord specifically consents to the use of the demised premises for the purpose of the sale or supply of...... intoxicating liquor whether same are sold or supplied for consumption on or off the Demised Premises.

(c) Under Clause 3.2 (4) the tenant covenants "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 licencee BUT SO THAT NOTWITHSTANDING the foregoing the Landlord shall not unreasonably withhold its consent to an assignment of the entire or underletting of the entire of the demised premises subject to the following provisions....."

(d) Clause 5.1 (4) states "The Landlord shall have power at all times ....to deal as the Landlord may think fit with any of the Lands and Premises adjoining or opposite to the demised premises ........ Provided:

(a) ..............

(b) No additional food retailer is allowed operate within the Centre in an area in excess of 2,000 square feet.

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

5. The Authority considers that Quinnsworth Limited and Trikkala 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 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 Trikkala Ltd and Quinnsworth does not offend against Section 4 (1) of the Competition Act 1991.

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 Trikkala Ltd and Quinnsworth in relation to the lease of premises at Janelle Shopping Centre, Finglas Rd., Dublin 11, notified under Section 7 on 30 September 1993 (notification no. CA/881/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority.

Des Wall

Member

3 December 1993