Irish Competition Authority Decisions

1. Notification was made by Marspel Ltd on 29 September 1992 with a request for a licence under Section 4(2) of the Competition Act 1991 in respect of a lease between Town and County Investments plc and Marspel Ltd.

2. The notification concerns the lease of shop unit 6B at Ballybrack Shopping Centre, Ballybrack, Co.Dublin between Town and County Investments plc as lessor and Marspel Ltd. as lessee.

3. Town and County Investments plc is engaged in the letting of shop units at Ballybrack Shopping Centre. Marspel Ltd trading as Newsworld is engaged in the business of Newsagents at the shopping centre.

4. The notified shopping centre lease was executed on 4 March 1980 for a term of 30 years from 1 November 1980 between Tesco Stores Ltd and Duffy Group Ltd. Subsequently Town and County Investments Ltd acquired the lessor interest and Marspel Ltd acquired the lessee interest. The restricted user clauses in the lease are as follows:-

(a) Under clause B.12 the lessee covenants "..... not to use or permit the premises hereby demised to be used for any purpose other than a retail newsagents shop and for the sale of goods usually associated with such a shop and for the sale of toys."

(b) Under clause D4 the Lessor covenants " The Lessor shall not at any time during the continuance of this demise.....permit any part of the shopping centre other than the shop premises hereby demised to be used for the purpose of carrying on the business of newsagent or permit any other premises to be used principally for the sale of toys."

(c) Under clause B.30 the lessor covenants

"(a) Not to assign, underlet or part with or share the possession of any part of the demised premises.

(b) Not to assign, underlet or part with or share the possession of the whole of the demised premises except to a suitable and solvent Lessee and subject to the consent of the Lessor."

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

5. The Authority considers that Town and County Investments plc and Marspel 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 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 Town and County Investments plc and Marspel Ltd does not offend against Section 4 (1) of the Competition Act 1991.

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 Town and County Investments plc and Marspel Ltd in relation to the lease of the premises at Unit 6B Ballybrack Shopping Centre notified under Section 7 on 29 September 1992 (notification no. CA/214/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

5 October 1993