Irish Competition Authority Decisions

1. Notification was made by The Governor and Company of the Bank of Ireland (Bank of Ireland) 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 Waterford Shopping Centre Ltd and Bank of Ireland.

2. The notification concerns the lease of a unit (no. 28) in the Waterford Shopping Centre, Lisduggan, Waterford between Waterford Shopping Centre Ltd as lessor and Bank of Ireland as lessee.

3. The Bank of Ireland is the second largest commercial bank in the State with a network of 290 branches including the branch at Waterford Shopping Centre. Waterford Shopping Centre Limited, a wholly owned subsidiary of Green Property plc, is engaged in the business of letting shop units at Waterford Shopping Centre.

4. The notified lease was made on 1 November, 1976 for a period of 35 years from 1 January, 1976. The restricted user clauses in the lease are as follows:

(a) Under clause 3.08 the lessee covenants with the lessor:

"To use the demised premises for the purposes of Banking and not without the lessors consent in writing to use or permit or suffer the same or any part thereof to be used for any other purpose .....".

(b) Under clause 3.10 the lessee covenants with the lessor:

"(a) 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 ......

(c) By way of supplementary letter dated 5 October, 1976 the lessor stated "that Waterford Shopping Centre Limited will use its best endeavours to ensure that no other joint stock Bank (other than Bank of Ireland as lessees of Unit 28) will be allowed on Waterford Shopping Centre".

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 Waterford Shopping Centre 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 Waterford Shopping Centre Limited and 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 Waterford Shopping Centre Limited and The Governor and Company of the Bank of Ireland in relation to the lease of the premises at Waterford Shopping Centre, Lisduggan, Waterford notified under Section 7 on 30 September 1992 (notification no. CA/335/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993