Irish Competition Authority Decisions

1. Notification was made by the Governor and Company of the Bank of Ireland (Bank of Ireland) 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 Spearhill Company Ltd and Bank of Ireland.

2. The notification concerns the lease of Unit 24 in the Castletroy Parkway Shopping Centre, Dublin Road, Limerick between Spearhill Company Ltd as Lessor and Bank of Ireland as Lessee.

3. The Bank of Ireland is the second largest commercial bank in Ireland with a network of 290 branches including the branch at the Parkway Shopping Centre. Spearhill Co Ltd is engaged in the letting of shop units at the Parkway Shopping Centre.

4. The notified lease was made on l9 October, l987 for a period of 35 years from l7 July, l986. The restricted user clauses in the lease are as follows:-

(a) Under clause 4 (d) of the 6th Schedule to the lease the lessee covenants "Not to use or suffer to be used the demised premises or any part thereof as a Restaurant nor (without the prior consent in writing of the Lessor which said consent shall not be unreasonably witheld) for any purpose other than as a bank."

(b) Under clause 7 of the 6th Schedule to the lease the lessee covenants " Not to assign or under-let or share or part with the possession of the demised premises or any part thereof..... without the previous written consent of the Lessor such consent not to be unreasonably witheld."

(c) Under clause 5 of the 7th Schedule to the lease the Lessor covenants

(a) For so long as the Lessee of the demised premises or any portion thereof shall be .....the Bank of Ireland not without having first received its consent in writing to permit any other Bank Institution Company or person to transact banking business in the Shopping Centre nor to permit or allow in any other part of the Shopping Centre the erection or placing of an automatic teller machine or other such cash point.

(b) For so long as the Lessee of the demised premises or any portion thereof shall be .....the Bank of Ireland not without having first received its consent in writing to permit any Building Society to occupy Unit 23 ......"

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

5. The Authority considers that the Bank of Ireland and Spearhill Company 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 Spearhill Company Limited and the Bank of Ireland 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 the Spearhill Company Limited and The Governor and Company of the Bank of Ireland in relation to the lease of the premises at Parkway Shopping Centre, Dublin Rd., Limerick notified under Section 7 on 30 September 1992 (notification no. CA/340/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993