Irish Competition Authority Decisions

1. Notification was made by Anthony Finbarr O'Donovan and Kathryn O'Donovan 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 leases between Anthony Finbarr O'Donovan and Kathryn O'Donovan and Edward and Catherine Drennan.

2. The notification concerns two leases relating to 7 units in blocks 3 and 4 of the Carrigaline Shopping Complex, Carrigaline, Co. Cork between Edward and Catherine Drennan as lessor and Anthony and Kathryn O'Donovan as lessees.

3. Edward and Catherine Drennan are the owners and landlords of the Carrigaline Shopping Complex. Anthony and Kathryn O'Donovan are engaged in the sub-letting of units at the shopping centre.

4. The notified leases were made on 22 June, l989 for block 4 and on l3 October, l989 for block 3 - each for a term of l50 years. The restricted user clauses in the leases are as follows:

(a) Under clause B 7(a) the lessee covenants with the Lessor "Not to use or permit the demised premises or any part thereof to be used for any purpose which may be in competition with any other existing business in the Carrigaline Shopping Complex and for no other purpose whatsoever save with the Lessor's consent in writing which consent shall not be unreasonably withheld provided however that it shall be reasonable for the Lessors to withhold consent on the grounds that the proposed user would compete directly with other owners or users of properties in the Carrigaline Shopping Complex."

(b) Under clause c 4 the lessor covenants "Not to permit any property in the Carrigaline Shopping Complex to be used for a business which is mainly in competition with an existing business of the Lessee in the said Complex."

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

5. The Authority considers that Edward and Catherine Drennan and Finbarr and Kathryn O'Donovan are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

6. 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 Edward and Catherine Drennan and Anthony Finbarr and Kathryn O'Donovan do 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 agreements between Edward and Catherine Drennan and Anthony Finbarr and Kathryn O'Donovan in relation to the leases of the premises at Carrigaline Shopping Complex, Carrigaline Co. Cork, notified under Section 7 on 30 September, l992 (notification no. CA/245/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993