Irish Competition Authority Decisions

1. Notification was made by Tallaght Shopping Centre 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 leases between Tallaght Shopping Centre Limited and its tenants at Kilnamanagh Shopping Centre.

2. The notification concerns the standard lease relating to shop units (No's 4/7, l5/l6/l7A, l9/22) in the Kilnamanagh Shopping Centre (also described as Tallaght Shopping Centre), Kilnamanagh, Dublin 24 between Tallaght Shopping Centre Limited as landlord and the tenants of the units.

3. Tallaght Shopping Centre Limited is the owner and landlord of shop units at Kilnamanagh Shopping Centre. The tenants are engaged in various trading and service activities at the shopping centre.

4. The standard shopping centre lease notified contains the following restricted user clauses viz.

(a) Under clause l0 of the Lessee's Covenants the lessee covenants with the landlord "Subject to Clause l4 of the Third Schedule hereto to use the demised premises for the purposes of and not without the Lessor's 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 clause l2 of the Lessee's Covenants the lessee covenants "Not to assign sub-let, part with or share possession of the demised premises or any part thereof save by way of mortgage by sub-demise without the consent in writing of the Lessor such consent not to be unreasonably withheld...."

(c) Under clause l4(c) of the Third Schedule the lessee covenants with the landlord "Not to change the user of the demised premises to any trade or business the same or similar to any trade or business being carried on in any other shop, unit or units, at Tallaght Shopping Centre."

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

5. Tallaght Shopping Centre Ltd has supplied details of the permitted user attaching to each tenancy whereby the tenant is restricted to particular specified trading activities.

6. The Authority considers that Tallaght Shopping Centre Limited and the tenants 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 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 of l0 September, l993, pp.665-667). The Authority therefore considers that the notified agreements between Tallaght Shopping Centre Limited and its tenants 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 Tallaght Shopping Centre Limited and its tenants in relation to the lease of premises at Kilnamanagh Shopping Centre, Kilnamanagh, Dublin 24 notified under Section 7 on 30 September 1992 (notification no. CA/877/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993