Irish Competition Authority Decisions

1. Notification was made by Kenneth C. Rohan 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 Kenneth C. Rohan, The Square Management Ltd, and Agricultural Credit Corporation plc.

2. The notification concerns a lease for unit 312A, The Square Towncentre, Tallaght, Dublin 24 between The Square Management Ltd as Freeholder, Kenneth C. Rohan as landlord and Agricultural Credit Corporation plc as tenant.

3. The Square Management Ltd is the Freeholder (and owner) of The Square Towncentre, Tallaght, Dublin 24. Kenneth C, Rohan is the landlord of unit 312A in The Square, Tallaght. Agricultural Credit Corporation plc is engaged in the business of banking.

4. The notified lease has a term of 35 years from ll November, l99l. The restricted user clauses in the lease are as follows:

(a) Under clause 3.2(3) the tenant covenants with the landlord and the Freeholder "Not, without the prior consent in writing of the Landlord and the Freeholder or their respective Agents thereunto lawfully authorised, to use or permit or suffer to allow the Demised Premises or any part thereof, to be used for any purpose other than a commercial bank incorporating one A.T.M. machine... PROVIDED ALWAYS AND IT IS HEREBY AGREED AND DECLARED that upon any application by the Tenant, or any Undertenant of the Tenant, for liberty to alter or change the aforesaid permitted use of the Demised Premises the Landlord and the Freeholder shall not unreasonably withhold their consent..."

(b) Under clause 3.2(5) the tenant covenants with the landlord and the Freeholder "Not to assign transfer, underlet, mortgage, charge or part with the possession or occupation of the Demised Premises or any part thereof or suffer any person to occupy the Demised Premises or any part thereof as a licensee or concessionaire except with the previous consent in writing of the Landlord and the Freeholder BUT SO THAT NOTWITHSTANDING the foregoing the Landlord and the Freeholder shall not unreasonably withhold its consent ..."

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

5. The Authority considers that Kenneth C. Rohan, The Square Management Ltd and Agricultural Credit Corporation plc 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, l993 in respect of shopping centre leases (Iris Oifigiuil of l0 September, l993, pp. 665-667). The Authority therefore considers that the notified agreement between The Square Management Ltd, Kenneth C. Rohan and Agricultural Credit Corporation plc 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 The Square Management Ltd, Kenneth C. Rohan and Agricultural Credit Corporation plc in relation to the lease of the premises at The Square Towncentre, Tallaght, Dublin 24, notified under Section 7 on 30 September, l992 (notification no. CA/930/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

3 December 1993