Irish Competition Authority Decisions

1. Notification was made by Una and Jim Flanagan on 28 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 Una and Jim Flanagan and Balally Investments Limited.

2. The notification concerns the lease of unit No l of Quinnsworth Sandyford Shopping Centre, Sandyford, Co. Dublin between Balally Investments Limited as Lessor and Una and Jim Flanagan as lessees.

3. Una and Jim Flanagan, as successors in title, trade as newsagents under the name "News Stop" trade at Unit 1 at Quinnsworth Sandyford Shopping Centre, Dublin. Balally Investments Limited is stated to be the current landlord of the shop unit.

4. The notified lease was made on 2 May, l990 for a period of 35 years from l October, l982 between Canister Exports Ltd as lessor and Harrison & Sons Ltd as lessees. The restricted user clauses in the lease are as follows:

(a) Under clause B.12 the tenant covenants with the landlord:

"...Not to use or suffer to be used the demised premises or any part thereof for any purpose other (than) as a Newsagents and for the sale of sweets, confectionery, tobacco, toys, gifts, greeting cards, stationery, paperbacks and other allied products without the consent of the Lessor under its hand first obtained."

(b) Under clause B.15 the tenant covenants with the landlord

"Not to assign or under-let or part with the possession of the demised premises or any part thereof or otherwise alienate same without the previous written consent of the Lessor such consent not to be unreasonably withheld."

(c) Under clause C.4 the landlord covenants with the tenant

"Not to lease or alienate any part of the Sandyford Shopping Centre, Dublin, without first reserving thereout of the benefit of the Lessee's rights and privileges corresponding to and reciprocal to those excepted and removed in favour of the Lessor and others out of these presents."

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

5. The Authority considers that Una and Jim Flanagan and Balally Investments Limited 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 10 September 1993, pp.665-667). The Authority therefore considers that the notified agreement between Balally Investments Ltd and Una and Jim Flanagan does not offend against Section 4(1) of the Competition Act, l99l.

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 Balally Investments Ltd and Una and Jim Flanagan in relation to the lease of the premises at Quinnsworth Sandyford Shopping Centre, Sandyford, Co. Dublin notified under Section 7 on 28 September 1992 (notification no. CA/162/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993