Irish Competition Authority Decisions

1. Notification was made by Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited and Westport Developments 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 leases between Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited and Westport Developments Limited and their tenants.

2. The notification concerns the leases relating to 8 units in the Galway (Headford Road) Shopping Centre, Galway between Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited and Westport Developments Limited as landlords and the tenants.

3. Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited and Westport Developments Limited are stated to be the owners and landlords of the Galway (Headford Road) Shopping Centre. The tenants are engaged in various retail and service activities at the centre.

4. The standard shopping centre lease notified shows Westport Developments Ltd as landlord. The restricted user clauses in the lease are as follows:

(a) Under clause 4.16 the tenant covenants with the landlord:

"(a) Not to assign underlet or part with the possession control or occupation of nor to franchise the use of part only of the demised premises.

(b) Not to assign underlet or part with the possession or control or occupation of nor to franchise the use of the whole of the demised premises without the consent in writing of the Landlord first obtained which consent shall not be unreasonably withheld..."

(b) Under clause 4.19(a) the tenant covenants with the landlord "To have the Unit for the purposes of and ancillary purposes connected therewith but for no other purpose ....."

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

5. The Applicants have furnished details of the permitted user under clause 4.19 attaching to each lease whereby the tenant is restricted to particular specified retail or service activities.

6. The Authority considers that Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited, Westport Developments 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 Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited, Westport Developments Limited and the 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 Dunnes Stores (Headford Road) Limited, Castlebrook Investments Limited, Westport Developments Limited and their tenants in relation to the lease of premises at Galway (Headford Road) Shopping Centre, Galway notified under Section 7 on 30 September, l992 (notification no. CA/878/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

15 December 1993