Irish Competition Authority Decisions

1. Notification was made by Peter Mark 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 lease between Peter Mark and Cornelscourt Shopping Centre Ltd.

2. The notification concerns the lease of a unit (No. 8) in Cornelscourt Shopping Centre, Cornelscourt, Dublin 18 between Cornelscourt Shopping Centre Ltd as landlord and Peter Mark as tenant.

3. Peter Mark is an unlimited company carrying on the business of hairdressing with approximately 48 outlets in the State including a salon at Cornelscourt Shopping Centre. Cornelscourt Shopping Centre Ltd is engaged in the letting of shop units at the centre.

4. The notified lease was made on 27 September, l99l for a period of 35 years from 30 September, l99l. The restricted user clauses in the lease are as follows:

(a) Under clause 4(l7) the tenant covenants with the landlord:

"(a) Not to assign underlet or part with or share 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 or share 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...."

(b) Under clause 4(20) the tenant covenants with the landlord:

"Not to use or occupy the demised premises or any part thereof or permit the same to be used or occupied for any other purpose than the retail trade or business of ladies and gents hairdressing salon beauty treatment and solarium and for the sale of hair and beauty products associated therewith ....."

(c) By way of side letter attached to the lease the Landlord undertakes that the tenant "shall have the exclusive right to use the premises for the purpose of ladies and gents hairdressing salon and for the sale of wigs and for use as a solarium to the exclusion of all other tenants in the Development ...."

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

5. The Authority considers that Cornelscourt Shopping Centre Ltd and Peter Mark 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 Cornelscourt Shopping Centre Ltd and Peter Mark does 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 agreement between Cornelscourt Shopping Centre Limited and Peter Mark in relation to the lease of the premises at Cornelscourt Shopping Centre, Cornelscourt, Dublin 18 notified under Section 7 on 30 September 1992 (notification no. CA/1015/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993