Irish Competition Authority Decisions

1. Notification was made by Cranford Properties Limited on 9 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 leases between Cranford Properties Limited and its tenants at Rathfarnham Shopping Centre.

2. The notification concerns the leases relating to 35 shop units in Rathfarnham Shopping Centre, Butterfield Avenue, Rathfarnham, Dublin 14 between Cranford Properties Limited as Lessor and the tenants.

3. Cranford Properties Limited is the owner and landlord of the Rathfarnham Shopping Centre. The tenants are engaged in various retail and service activities at the shopping centre.

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

(a) Under clause 3(h) the tenant covenants "Not to use or permit or suffer the premises or any part thereof to be used for any purpose whatsoever other than as ".

(b) Under clause 3(n) the tenant covenants "Not to sub-let nor to assign nor to part with the possession of the demised premises or any part thereof without first having the consent of the Lessor, which consent the Lessor shall not unreasonably withhold."

(c) Under clause 4(f) the Landlord covenants with the tenant "Not during the term hereby granted to carry on or permit or suffer to be carried on in or upon any other part of the said Shopping Centre any trade or business the main purpose whereof is the trade or business of ."

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

5. Cranford Properties have provided details of the permitted user under clause 3(h) attaching to each of 29 tenancies whereby each tenant is restricted to particular specified exclusive activities. In addition they have advised of a covenant in favour of a supermarket not to permit any tenant or lessee in any premises in Rathfarnham Shopping Centre other than the said premises to have an area for the sale of food which is in excess of 1,300 square feet.

6. The Authority considers that Cranford Properties 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, 1993 in respect of shopping centre leases (Iris Oifigiuil of 10 September, 1993, pp. 665-667). The Authority therefore considers that the notified agreements between Cranford Properties 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 Cranford Properties Limited and its tenants in relation to the lease of the premises at Rathfarnham Shopping Centre, Butterfield Ave, Rathfarnham, Dublin 14, notified under Section 7 on 9 September,1992 notification no. CA/74/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993