Irish Competition Authority Decisions

1. Notification was made by Town and County Investments plc on 30 September 1992 with a request for a certificate under Section 4(4) of the Competition Act 1991 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 Town and County Investments plc and Coffee Garden (Drogheda) Ltd.

2. The notification concerns the lease of a restaurant unit at Drogheda Town Centre, West St. Drogheda, Co. Louth between Town and County Investments plc as landlord and Coffee Garden (Drogheda) Ltd. as tenant.

3. Town and County Investments is a public limited company involved in property investment and development. Coffee Garden (Drogheda) Ltd trades at Drogheda Town Centre as a restaurant/coffee bar.

4. The notified shopping centre lease was executed on 27 March 1990 for a term of 35 years from 1 March 1990. The restricted user clauses in the lease are as follows:-

(a) Under clause 3.2.(3) the tenant covenants

"to keep the demised premises for the purpose of a Restaurant, Coffee Shop and for the sale of fast food and drinks and not without the Landlord's prior 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 3.2 (7) the tenant covenants

"not to assign transfer or under-let or part with the possession or occupation of the demised premises or any part thereof or suffer any person to occupy the demised premises or any part thereof as a licensee BUT SO THAT NOTWITHSTANDING the foregoing the Landlord shall not unreasonably withold its consent to any assignment of the entire or underletting of the entire of the demised premises subject to the following provisions......"

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

5. The Authority considers that Town and County Investments plc and Coffee Garden (Drogheda) 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 clause 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 Town and County Investments plc and Coffee Garden (Drogheda) Ltd does not offend against Section 4(1) of the Competition Act, 1991.

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 Town and County Investments plc and Coffee Garden (Drogheda) Ltd in relation to the lease of the premises at Drogheda Town Centre, West St., Drogheda, Co. Louth notified under Section 7 on 30 September 1992 (notification no. CA/254/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall

Member

5 October 1993