Irish Competition Authority Decisions

1. Notification was made by Doyles Shoe Centre Ltd 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 a lease between Michael Reilly and Sons Ltd (now Nabola Developments Ltd) and Doyles Shoe Centre Ltd.

2. The notification concerns the lease of shop units 3/4 at Maynooth Shopping Centre, Maynooth, Co. Kildare between Michael Reilly and Sons Ltd (now Nabola Developments Ltd) as landlord and Doyles Shoe Centre Ltd as tenant.

3. Michael Reilly and Sons Ltd was engaged in the letting of shop units at Maynooth Shopping Centre. Its successor in title, Nabola Developments Ltd is now similarly engaged. Doyles Shoe Centre Ltd trades as a shoe shop at the shopping centre.

4. The notified shopping centre lease was executed on 10 September 1982 for a period of 30 years from 20 August 1982. The restricted user clauses in the lease are as follows:

(a) Under clause 10 section III of the agreement the tenant covenants "To use the demised premises for the purpose of the sale of Ladies', Gents' and Children's Shoes and Footwear only save and except all sports shoes and sports footwear and not without the 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 section III the tenant covenants "not to assign sublet part with or share possession of a part (as distinct from the whole) of the demised premises under any circumstances whatever or the whole of the demised premises without the prior consent in writing of the Landlord (such consent not to be unreasonably withheld)...."

(c) Under clause 4 Section IV the Landlord covenants "that for so long as the premises are used for the purpose set out at Clause 10 of Section 3 hereof the Lessor covenants with the Lessee that it will not permit a similar user in any other premises which form part of Maynooth Shopping Centre."

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

5. The Authority considers that Michael Reilly and Sons Ltd were and its successors in title Nabola Developments Ltd and Doyles Shoe Centre Ltd 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 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 agreement between Michael Reilly and Sons Ltd (now Nabola Developments Ltd) and Doyles Shoe Centre Ltd does not offend against Section 4 (1) of the Competition Act 1991.

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 Michael Reilly and Sons Ltd (now Nabola Developments Ltd) and Doyles Shoe Centre Ltd in relation to the lease of the premises at Units 3 and 4 Maynooth Shopping Centre, Maynooth, Co. Kildare notified under Section 7 on 30 September 1992 (notification no. CA/1100/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

15 December 1993