Irish Competition Authority Decisions

1. Notification was made by Wanze Properties (Ireland) Limited 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 leases between Wanze Properties (Ireland) Limited and its tenants at Drogheda Town Centre.

2. The notification concerns the leases relating to the shop units in the Drogheda Town Centre, West St, Drogheda, Co. Louth between Wanze Properties (Ireland) Limited as landlord and its tenants.

3. Wanze Properties (Ireland) Limited as successor in title is the owner and landlord of the Drogheda Town Centre. The 27 tenants are engaged in various retail and service activities at the shopping centre.

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

(a) Under clause 3.2(3) of Section III the tenant covenants with the landlord "To keep the demised premises for the purpose of provided always that the premises or any part thereof shall not be used for the sale, vending, consumption or otherwise of any type of food stuffs on the said premises for human or animal consumption only and, not without the Landlord's prior 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 3.2(7) of Section III the tenant covenants with the landlord "Not to assign transfer or underlet or part with the possession or occupation of the demised premises or any part thereof or suffer any person to occupy the demised premises or any part thereof as a licensee But So That Notwithstanding the foregoing the Landlord shall not unreasonably withhold its consent......"

(c) Under clause 14 of the Third Schedule the tenant covenants with the landlord "Not without the prior written consent of the Landlord to use permit or suffer the demised premises to be used in any way whatsoever for the sale or supply of beer, wine, spirits, liquors or other intoxicating liquor whether the same are sold or supplied for consumption on or off the demised premises."

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

5. Wanze Properties have supplied details of the permitted user under clause 3.2(3) applicable to each lease whereby the tenant is restricted to particular specified trading activities.

6. The Authority considers that Wanze Properties (Ireland) Limited and the tenants are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

7. 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, 1993 in respect of shopping centre leases (Iris Oifigiuil of 10 September, 1993, pp. 665-667). The Authority therefore considers that the notified agreements between Wanze Properties (Ireland) Limited and its tenants do 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 agreements between Wanze Properties (Ireland) Limited and its tenants in relation to the lease of premises at Drogheda Town Centre, West St, Drogheda, Co. Louth notified under Section 7 on 30 September, 1992 (notification no. CA/907/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993