Irish Competition Authority Decisions

1. Notification was made by Cornelscourt Shopping Centre Ltd 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 standard lease with the tenants at Cornelscourt Shopping Centre.

2. The notification concerns the leases on shop units at Cornelscourt Shopping Centre, Cornelscourt, Dublin 18 between Cornelscourt Shopping Centre Ltd as Landlord and 7 separate tenants at the centre.

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

4. The sample shopping centre lease notified which is in draft form contains the following restricted user clauses viz.

(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 ..... part only of the demised premises;

(b) Not to assign underlet or part with or share the possession or control or occupation 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 nor in any manner inconsistent with such user or occupation except with the consent in writing of the Landlord (such consent not to be unreasonably withheld) ......

Cornelscourt Shopping Centre Ltd has advised that the user clause 4(20) applies to each tenant restricting the tenant to particular specified trading activities at the centre. By way of supplementary letter the Landlord has also covenanted exclusive user within the centre to the tenants of Unit 1 (a Bank) and unit 8 (a hairdressing Salon).

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

5. The Authority considers that Cornelscourt Shopping Centre Ltd and the tenants are undertakings and that thenotified 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 Cornelscourt Shopping Centre Limited 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 Cornelscourt Shopping Centre Limited and the tenants in relation to the lease of premises at Cornelscourt Shopping Centre, Cornelscourt, Dublin 18 notified under section 7 on 30 September 1992 (notification no. CA/845/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993