Irish Competition Authority Decisions

1. Notification was made by Confrere Ltd 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 Mall Holdings Ltd and Confrere Ltd.

2. The Notification concerns the lease of unit 24 in the Crescent Shopping Centre, Dooradoyle, Limerick between Mall Holdings Ltd as lessor and Confrere Ltd as lessee.

3. Confrere Ltd trades as a hairdresser at unit no 24 in the Crescent Shopping Centre. Mall Holdings Ltd is the owner and landlord of the shopping centre.

4. The notified lease was made on 20 December, l989 with Mall Holdings Ltd for a period of 32 years from l November, l973. The restricted user clauses in the lease are as follows:

(a) Under clause D 12 the lessee covenants with the lessor "...not to use or suffer to be used the demised premises or any part thereof for Banking purposes nor for the provision of financial services nor as a Restaurant nor (without the prior consent in writing of the Lessor) for any purpose other than as a Ladies, Children's and Gentlemen's Hair Salon and Body Shop."

(b) Under clause D 15 the lessee covenants with the lessor "Not to assign (other than by way of Mortgage) or under-let or share or part with the possession of the demised premises or any part thereof or otherwise alienate same without the previous written consent of the Lessor such consent not to be unreasonably withheld."

(c) Under clause G l the lessor covenants with the lessee "...that it shall not during the currency of the term granted by these presents without the prior consent of Confrere Ltd demise any Unit within the Shopping Centre for use as a Hair Salon and Body Shop."

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

5. The Authority considers that Confrere Ltd and Mall Holdings 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 agrement, 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 agreement between Mall Holdings Ltd and Confrere Ltd 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 Mall Holdings Limited and Confrere Ltd in relation to the lease of the premises at Crescent Shopping Centre, Dooradoyle, Limerick notified under Section 7 on 30 September 1992 (notification no. CA/415/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993