Irish Competition Authority Decisions

1. Notification was made by Cassidy's Family Pharmacies Ltd (Cassidy's) on 29 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 Cassidy's.

2. The notification concerns the lease of shop unit 5 at the Crescent Shopping Centre, Dooradoyle, Limerick between Mall Holdings Ltd as Lessor and Cassidy's as lessee.

3. Mall Holdings Ltd is engaged in the letting of shop units at Crescent Shopping Centre. Cassidy's trades as a retail pharmacy at the shopping centre.

4. The notified lease was made on 11 December, 1978 for a term of 32 years from 1 November, 1973. The restricted user clauses in the lease are as follows:

(a) Under clause E 12 the tenant covenants with the landlord "..... not to use or suffer to be used the demised premises or any part thereof for Banking purposes nor as a Restaurant nor for any purpose other than a Chemist's shop without the consent of the Lessor under its seal first obtained."

(b) Under clause E 15 the tenant covenants with the landlord "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 with-held."

(c) Under a separate letter dated 26 February, 1976 Mall Holdings stated " ......reaffirm that the only condition agreed was that we would not let another unit as an individual pharmacy."

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

5. The Authority considers that Mall Holdings Ltd and Cassidys are undertakings and that the notified agreement 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 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 Cassidy's Family Pharmacies 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 Ltd and Cassidy's Family Pharmacies Ltd in relation to the lease of the premises at the Crescent Shopping Centre, Dooradoyle, Limerick notified under Section 7 on 29 September, 1992 (notification no. CA/198/92E), does not offend against section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993