Irish Competition Authority Decisions

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.

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.

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.

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.

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.

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