Irish Competition Authority Decisions

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Cite as: [1993] IECA 70

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Civil Engineers (Ireland) Ltd/ William & Josephine Donovan [1993] IECA 70 (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/512/92E - Civil Engineers (Ireland) Ltd/William and Josephine Donovan.

Decision No: 70

Price £0.30

£0.70 incl. postage.

Notification No. CA/512/92E - Civil Engineers (Ireland) Ltd/William and Josephine Donovan

Decision No. 70

Introduction

1. Notification was made by William Donovan on 30 September 1992 with a request for a licence under Section 4(2) of the Competition Act 1991 in respect of a lease between Civil Engineers (Ireland) Ltd and William and Josephine Donovan trading as Donovans.

The Facts

(a) The subject of the notification

2. The notification concerns the lease of Shop Unit A at Greenfield Shopping Centre, Maynooth, Co. Kildare between Civil Engineers (Ireland) Ltd as Lessor and William Donovan.

(b) The parties involved

3. Civil Engineers Ireland is the Landlord and lessor of shop units at Greenfield Shopping Centre. William and Josephine Donovan, trading as Donovans, trades as a newsagent/tobacconist at the shopping centre.

(c) The notified arrangements

4. The lease notified was executed on 18 August 1986 for a term of 500 years from 25 March 1983 between Civil Engineers (Ireland) Ltd as Lessor and William Donovan as lessee. The restricted user clauses in the lease are as follows:-

(a) under clause 10 the tenant is permitted to use the premises as a newsagency and tobacconist including retail sales of Toys and Stationery and covenants "and not without the Lessor' consent in writing which shall not be unreasonably withheld to use or permit or suffer the same or any part thereof to be used for any other purpose.

(b) under clause 12 the tenant covenants "Not to assign sub-let, part with or share possession of the demised premises or any part thereof without the consent in writing of the Lessor such consent not to be unreasonably withheld."

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 Civil Engineers (Ireland) Ltd and William and Josephine Donovan, trading as Donovans, 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 Civil Engineers (Ireland) Ltd and William Donovan does not offend against Section 4 (1) of the Competition Act 1991.

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 Civil Engineers (Ireland) Ltd and William and Josephine Donovan notified under Section 7 on 30 September 1992 (notification no. CA/512/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

5 October 1993