Irish Competition Authority Decisions

1. Notification was made by Wanze Properties (Ireland) Limited 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 standard lease between Wanze Properties (Ireland) Limited and the tenants of Greystones Shopping Centre.

2. The notification concerns the leases relating to shop units in the Greystones Shopping Centre, Greystones, Co. Wicklow between Wanze Properties (Ireland) Limited as landlord and the tenants.

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

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

(a) Under clause 3.2(3) the tenant covenants with the landlord "To keep the demised premises for the purpose of

only and not without the Landlord's 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(5) the tenant covenants with the landlord "Not to assign or underlet the whole of the demised Unit except with the previous consent in writing of the Landlord such consent not to be unreasonably withheld."

(c) Under clause 3.2(6) the tenant covenants with the landlord "Not to sell nor permit or suffer the sale of groceries, food or food products or other items sold in a supermarket in an area exceeding three thousand square feet in any one unit whether by itself or its successors in title any holding company, subsidiary company or associate company or by any of its Tenants, sub-Tenants or occupants in the centre or otherwise."

(d) Under clause 3.2(7) the tenant covenants with the landlord "Not to assign transfer or underlet or part with the possession or occupation of the demised premises except by way or mortgage, by sub-demise or otherwise to a Bank or other lending Institution by way of security for borrowing by the Tenants, 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..."

(e) 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 lease.

5. Wanze Properties have supplied details of the permitted user under clause 3.2(3) attaching to each lease under which the tenant is restricted to particular specified retail or service 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, l993 in respect of shopping centre leases (Iris Oifigiuil of l0 September, l993, 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 Greystones Shopping Centre, Greystones, Co. Wicklow notified under Section 7 on 30 September l992 (notification no CA/910/92E), do not offend against Section 4(1) of the Competition Act, l991.

For the Competition Authority

Des Wall

Member

15 December 1993