Irish Competition Authority Decisions

1. Notification was made by Aquis Estates Ltd, Paul and Joseph Reynolds and Michael Hegarty (Aquis, Reynolds and Hegarty) on 23 December 1992 for a certificate under Section 4(4) of the Competition Act, l99l or in the event of refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of a standard lease between Aquis, Reynolds and Hegarty and tenants at the Courtyard Shopping Centre, Letterkenny.

2. The notification concerns the standard lease relating to the letting of shop units at the Courtyard Shopping Centre, Letterkenny, Co. Donegal between Aquis, Reynolds and Hegarty as Landlord and the tenants.

(b) The parties involved

3. Aquis, Reynolds and Hegarty are engaged in the letting of shop units at the Courtyard Shopping Centre. The tenants are engaged in various retail and service activities at the shopping centre.

4. The standard shopping centre lease notified was in draft form and contains the following restricted user clauses viz.

(i) Under Clause 5.16 the tenant covenants "Not without the prior consent in writing of the Landlord or its Agent 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 as a high quality shop for the the retail sale of ..........

(ii) Under clause 5.18 the tenant covenants "The tenant will not assign transfer mortgage charge or underlet or part with or share the possession or occupation of the whole or any part of the Demised premises in any way whatsoever except only that the Tenant may with the written consent of the Landlord (which consent shall not be unreasonably witheld) subject to.....assign the Demised Premises as a whole......

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

5. The Applicants have also advised that by way of side agreement dated 22 May 1992 exclusive user in the shopping centre has been granted in respect of a Take Away Food outlet and Coffee Shop.

6. The Authority considers that Aquis, Reynolds and Hegarty and the tenants are undertakings and that the notified lease is an agreement between undertakings. The agreement has effect within the State.

7. 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 standard agreement between Aquis Estates Ltd, Paul and Joseph Reynolds and Michael Hegarty and the tenants of the Courtyard Shopping Centre, Letterkenny does 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 standard agreement between Aquis Estates Ltd Paul and Joseph Reynolds and Michael Hegarty and the Tenants in relation to the lease of the premises at the Courtyard Shopping Centre, Letterkenny, Co. Donegal notified under Section 7 on 23 December 1992 (notification no. CA/1134/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993