Irish Competition Authority Decisions

1. Notification was made by Crumlin Investments Ltd 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 the standard lease between Crumlin Investments Ltd and the tenants at Crumlin Shopping Centre.

2. The notification concerns the standard shopping centre lease for Crumlin Shopping Centre, Crumlin Rd. Dublin 12 between Crumlin Investments Ltd and 43 tenants at the Shopping Centre.

3. Crumlin Investments Ltd is engaged in the letting of shop units at Crumlin Shopping Centre. The tenants are engaged in various retail and service activities at Crumlin Shopping Centre.

4. The notified standard shopping centre lease is in draft form with Crumlin Investments Ltd shown as landlord. The restricted user clauses in the draft lease are as follows:-

(a) Under clause 4 (20) the tenant covenants with the landlord "Not to use or occupy the demised premises or any part thereof ..... except with the consent in writing of the Landlord ..... for any other purpose than the retail trade or business of .......

(b) Under clause 4(17) the tenant covenants

"(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......of the whole of the demised premises without the licence in writing of the Landlord first obtained........

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

Crumlin Investments Ltd has advised that user clause 4 (20) as above is applied to each lease so that each tenant is restricted to particular specified trading or service activities.

5. The Authority considers that Crumlin Investments Ltd and the tenants are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

6. 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 10 September 1993, pp. 665-667). The Authority therefore considers that the notified agreements between Crumlin Investments Ltd and the tenants do not offend against section 4(1) of the Competition Act, l99l.

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 agreements between Crumlin Investments Ltd and the tenants in relation to the leases of the premises at Crumlin Shopping Centre, notified under Section 7 on 30 September 1992 (notification no. CA/844/92), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993