Irish Competition Authority Decisions

1. Notification was made by Superquinn on 30 September 1992 with a request for a certificate under Section 4(4) of the Competition Act, 1991, or in the event of refusal by the Competition Authority to issue a certificate, a licence under Section 4(2) in respect of a standard shopping lease between Superquinn and the tenants of Superquinn Shopping Centre, Blanchardstown, Co. Dublin.

2. The notification concerns the leases of shop units Nos. 3 to 12, 12A and 14/17 at Superquinn Shopping Centre, Blanchardstown, Co. Dublin between Superquinn as lessor and the 14 tenants of these units.

3. Superquinn Ltd trades as a supermarket and is engaged in the letting of shop units. The tenants are engaged in a variety of retail/service activities at the centre.

4. The standard shopping centre lease notified, which related to Unit 10, was executed on 21 December 1977 for a period of 30 years from 2 November 1977 between Superquinn Ltd as the lessor and Anthony Kelly (Mans Shop) Ltd. as lessee. The restricted user clauses in this lease are as follows:-

(a) Under clause B12 the lessee covenants " ........not to use or suffer to be used the demised premises or any part thereof for any purpose other than as a retail shop for the sale of menswear and boyswear......"

(b) Under clause B15 the lessee covenants "Not to assign or under-let or part with ....the demised premises or any part thereof ... without the previous written consent of the Lessor such consent not to be unreasonably withheld."

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

5. Superquinn has advised that similar requirements attach to the other leases with the permitted user clause B12 restricting each tenant to particular specified trading activities. In addition the Lessor has covenanted exclusive user clauses with particular tenants not to create any other tenancy or allow other tenants in the Shopping Centre* to sell fresh meats; newspapers, magazines, books; menswear/boyswear; jewellery etc; radio/TVs; operate as a chemists shop or carry on business as a Building Society. (* excepting the Supermarket in most cases).

6. The Authority considers that Superquinn 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 standard agreement agreements, 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 agreements between Superquinn Ltd and its tenants do not offend against Section 4 (1) of the Competition Act 1991.

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 Superquinn and the tenants in relation to the lease of shop units at Superquinn Shopping Centre, Blanchardstown, Co. Dublin notified under Section 7 on 30 September, 1992 (notification no. CA/888/92E), do not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

5 October 1993.