Irish Competition Authority Decisions

1. Notification was made by Salix Trust Limited 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 leases between Salix Trust Limited and its tenants.

2. The notification concerns the leases relating to the shop units in the Stillorgan Shopping Centre, Stillorgan, Co Dublin between the Salix Trust Limited as landlord and its tenants.

3. Salix Trust Limited is the owner and landlord of the Stillorgan Shopping Centre. The tenants are engaged in various retail and service activities at the centre.

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

(a) Under clause 10 of Section III the tenant covenants with the landlord "To use the demised premises for the purposes of and not without the Landlord'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 12 of Section III the tenant covenants with the landlord "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 Landlord such consent not to be unreasonably withheld......"

(c) Under clause 14 of the Third Schedule the tenant covenants with the landlord "Not to use, permit or suffer the demised premises to be used in any way whatsoever for the sale or supplying of beer, wine, spirituous liquors or other intoxicating liquor whether the same are sold or supplied for consumption on or off the demised premises."

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

5. Salix Trust has supplied details of the permitted user under clause 10 attaching to each of 70 leases at the centre whereby the tenant is restricted to particular specified retail or service activities.

6. The Authority considers that Salix Trust 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 Salix Trust 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 Salix Trust Limited and its tenants in relation to the lease of premises at Stillorgan Shopping Centre, Stillorgan, Co. Dublin notified under Section 7 on 30 September, 1992 (notification no. CA/384/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993