Irish Competition Authority Decisions

1. Notification was made by Lillington Limited and others namely, Michael James Donnolly, Padraig Doyle, Gerard Hanlon, Jeremiah Branally and James John Kelly 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 Lillington Limited and others and the tenants of Glenageary Roundabout Shops.

2. The notification concerns the lease of 8 shop units at Glenageary Roundabout Shops, Upper Glenageary Rd, Glenageary, Co. Dublin between Lillington Limited and others as landlords and the tenants.

3. Lillington Limited and others are the lessors of units l to 8 at Glenageary Roundabout Shops. The tenants are engaged in various retail and service activities at the shopping centre.

4. 7 of the shopping centre leases notified contain the following restrictive user clauses viz.

(a) Under clause 10 the lessee covenants "To use the demised premises for the purpose of and not without the lessors consent in writing (which shall not be unreasonably witheld) to use or permit or suffer the same or any part thereof to be used for any other purpose."

(b) Under clause 12(a) the lessee covenants " Not to assign sub-let, part with or share possession of the demised premises or any part thereof without the consent in writing of the Lessor (such consent not to be unreasonably witheld)......"

The other lease notified contains clauses of similar effect. In addition there are a number of other standard restrictive covenants and obligations in all 8 leases notified.

5. The leases furnished contain the permitted user under clause 10 attaching to each tenancy whereby the tenant is restricted to particular specified retail or service activities.

6. The Authority considers that Lillington Limited and others and the tenants of Glenageary Roundabout Shops are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

7. The Authority considers that the notified agreements, and their restricted and exclusive user clauses and the other standard restrictive clauses and obligations, do not have the object or effect or 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 Lillington Limited and Messrs. Donnelly, Doyle, Hanlon, Brannelly and Kelly and the tenants of Glenageary Roundabout Shops, Upr. Glenageary Rd, Glenageary, Co. Dublin do not offend against Section 4(1) of the Competition Act, l99l.

8. 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 Lillington Limited and Messrs. Donnelly, Doyle, Hanlon, Branelly and Kelly and the tenants of Glenageary Roundabout Shops in relation to the lease of premises at Glenageary Roundabout Shops, Upr. Glenageary Rd, Glenageary, Co. Dublin, notified under Section 7 on 30 September 1992 (notification no. CA/782/92E), do not offend against Section 4(1) of the Competition Act,l99l.

For the Competition Authority

Des Wall

Member

3 December 1993.