Irish Competition Authority Decisions

1. Notification was made by Baron Craft Company Limited on 25 September l992 with a request for a certificate under Section 4(4) of the Competition Act, l99l, in respect of a lease between Deerpark Ltd and Baron Craft Company Ltd .

2. The notification concerns the lease of shop unit No.7 at Kingswood Shopping Centre, Kingswood, Tallaght, Dublin 24 between Deerpark Ltd as lessor and Baron Craft Company Ltd as lessee.

3. Deerpark Limited is the Landlord and lessor of shop units at Kingswood Shopping Centre. Baron Craft Co Ltd trades as a newsagents/tobacconist at the Shopping Centre.

4. The notified shopping centre lease was made on 5 September l983 for a period of 999 years from 1 January l983. The restricted user clauses in the lease are as follows:

(a) Under Clause B(10) the tenant covenants with the landlord:

"....... .....and not to use or permit the premises hereby demised to be used for any purpose other than as a newsagents-tobacconists shop including the retail of newspapers, magazines, periodicals, greeting cards, ice-cream, mineral waters, fancy goods....... cigarettes, cigars, tobaccos, stationery, school and office requisites, confectionery and items traditionally sold by newsagents".

(b) Under clause C(3) the Landlord covenants with the tenant:-

"Subject to the proviso hereinafter contained not to use or permit to be used any part of the Shopping Centre or any extension of the Shopping Centre for the sale of items of a newsagency and tobacco nature with the exception of the licenced premises and restaurant which shall be entitled to sell tobacco items and the mini-market unit..... Provided always that:

(i) The sole right to the retail of newspapers, magazines, periodicals and greeting-cards shall be vested in the owner, lessee or occupier of the premises hereby demised...."

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

5. The Authority considers that Baron Craft Company Ltd and Deerpark 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 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 Deerpark Ltd and Baron Craft Company Ltd does 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 agreement between Deerpark Ltd and Baron Craft Company Ltd in relation to the lease of the premises at Kingswood Shopping Centre, Kingswood, Tallaght, Dublin 24 notified under section 7 on 25 September 1992 (notification no. CA/117/92E), does not offend against section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993