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Irish Competition Authority Decisions
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City Properties (Cork) Ltd/ Glenberg [1993] IECA 63 (5th October, 1993)
URL: http://www.bailii.org/ie/cases/IECompA/1993/63.html
Cite as:
[1993] IECA 63
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City Properties (Cork) Ltd/ Glenberg [1993] IECA 63 (5th October, 1993)
COMPETITION
AUTHORITY
Competition
Authority Decision of 5 October 1993 relating to a proceeding under Section 4
of the Competition Act, l99l.
Notification
No: CA/998/92E - City Properties (Cork) Ltd/ Glenberg.
Decision
No: 63
Price
£0.30
£0.70 incl. postage.
Notification
No. CA/998/92E - City Properties (Cork) Ltd/ Glenberg.
Decision
No: 63
Introduction
1. Notification
was made by Glenberg 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 City Properties (Cork) Limited and Glenberg.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit No 11 in the Queens Old Castle Shopping
Centre, Cork between City Properties (Cork) Ltd as Lessor and Glenberg as lessee.
(b) The
parties involved
3. Glenberg
is the property holding company for its subsidiary Peter Mark which trades as a
hairdresser with approximately 48 outlets in the State. City Properties (Cork)
Limited is the owner and landlord of the Queens Old Castle Shopping Centre.
(c) The
notified arrangements
4. The
notified lease was made on 3 February, l980 for a period of 35 years from l
October, l979. The restricted user clauses in the lease are as follows:
(a) Under
clause l8 the lessee covenants
"Not
without the prior consent in writing of the Lessor to use the demised premises
for any other purpose than as a hairdressing salon and as a shop for the sale
of fashion
PROVIDED
ALWAYS.......
the
Lessor shall not unreasonably withold its consent to such proposed change of
user but in considering the matter full account should be taken ....that the
nature of the businesses carried on in Queens Old Castle Centre as a whole
should be ....as diverse as possible and with this end in view a covenant
...will be inserted in all Leases ......."
(b) Under
clause 24 the lessee covenants
"Not
to assign underlet or part with or share possession or permit the occupation by
a Licensee of the demised premises or any part thereof (or suffer any person to
occupy the demised premises or any part thereof as a licensee or as a
concessionaire) without the prior written consent in writing of the Lessor..."
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
Assessment
- The Applicability of Section 4(1)
5. The
Authority considers that Glenberg and City Properties (Cork) Limited 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 City Properties (Cork) Limited and Glenberg does not
offend against Section 4(1) of the Competition Act, l99l.
The
Certificate
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 City Properties (Cork) Limited and
Glenberg in relation to the lease of the premises at Queens Castle Shopping
Centre, Cork notified under Section 7 on 30 September 1992 (notification no.
CA/998/92E), does not offend against Section 4(1) of the Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
5
October 1993
© 1993 Irish Competition Authority