Irish Competition Authority Decisions

1. Notification was made by Glenberg 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 Glenberg and Urban Developments Limited.

2. The notification concerns the leases of units J, K, L and M in the Stillorgan Shopping Centre, Stillorgan, Co. Dublin between Urban Developments Ltd as landlord and Glenberg as tenant.

3. Glenberg is an unlimited company and it is the property holding company of the Peter Mark Chain of Hairdressing Salons. Urban Developments Limited is a limited liability company and it is the owner and landlord of the Stillorgan Shopping Centre.

4. Three leases were notified in respect of units J, K, L and M in the Stillorgan Shopping Centre. The lease for Unit J was originally made on 23 May, l967, with a subsequent lease for an extension on l6 January, l969, for a term of 42 years from l December, l966. The restricted user clauses in the lease are as follows:

(a) Under clause l0 the tenant covenants with the landlord "To use the demised premises for the purposes of a Gentleman's Hairdresser 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 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 2 of the Fourth Schedule the landlord covenants with the tenant "...not to let any other Unit in the Stillorgan Shopping Centre for the purpose of primarily carrying on the business of a Gentleman's Hairdresser."

5. The lease for Unit K was acquired on 6 July, l969 for a term of 42 years from 25 June, l968. The restricted user clauses in the lease are as follows:

(a) Under clause 10 the tenant covenants with the landlord "To use the demised premises for the purposes of Gentleman's Hairdresser and Sauna Baths and all purposes incidental thereto 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 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..."

6. The lease for Units L and M was originally made on 20 July, l967, and purchased in l969 in trust for the present tenant, with a term of 42 years from l December, l966. The restricted user clauses in the lease are as follows:

(a) Under clause 10 the tenant covenants with the landlord "To use the demised premises for the purposes of Ladies Hairdressers and for the retail sale of Hairdressing Appliances and Articles connected with Hairdressing and cosmetics 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 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 2 of the Fourth Schedule the landlord covenants with the tenant:

"Not to carry on or permit or suffer to be carried on in the Stillorgan Shopping Centre or any part thereof the business of Ladies Hair Stylists or Hairdressers PROVIDED ALWAYS as follows:-

(i) The Landlord may permit or suffer the business of Ladies Hair Stylist to be carried on by one other tenant of the Landlord in the said Stillorgan Shopping Centre.

(ii) The Landlord may permit or suffer the business of Ladies Hair Stylist to be carried on by the Tenant for the time being of any Department or Self-Service Store or Supermarket in the Stillorgan Shopping Centre as a Department or Subsidiary business of such Store or Supermarket unless Senior Counsel is of the opinion that the Landlord would succeed in proceedings to restrain the Tenant for the time being of any Department or Self-Service Store or Supermarket from carrying on said businesses........."

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

7. The Authority considers that Glenberg and Urban Developments Limited are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

8. 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 Urban Developments Limited and Glenberg do not offend against Section 4(1) of the Competition Act, l99l.

9. 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 Urban Developments Limited and Glenberg in relation to the lease of the premises at Stillorgan Shopping Centre, Stillorgan, Co. Dublin notified under Section 7 on 30 September, l992 (Notification No CA/1007/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993