Irish Competition Authority Decisions

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Robert and Mary Tweedy/Power Leisure Ltd [1993] IECA 86 (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/315/92E -Robert and Mary Tweedy/ Power Leisure Limited.

Decision No: 86

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Notification No. CA/315/92E -Robert and Mary Tweedy/ Power Leisure Limited

Decision No. 86

Introduction

1. Notification was made by Power Leisure Limited 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 Robert and Mary Tweedy and Power Leisure Limited.

The Facts

(a) The subject of the notification

2. The notification concerns the lease of a premises at 3 Tyrone Road, Lismore Park, Waterford, between Robert and Mary Tweedy as Lessor and Power Leisure Limited as lessee.

(b) The parties involved

3. Robert Tweedy and Mary Tweedy are the landlord and lessors of premises at and adjoining the premises at 3 Tyrone Road, Lismore Park, Waterford. Power Leisure Limited (trading as Paddy Power) is a licensed bookmaker with over 70 outlets throughout the country.

(c) The notified arrangements

4. The notified shop lease was made on 1 April 1988 for a period of 999 years from 25 March 1988. The restricted user clauses in the lease are as follows:

(a) Under Clause 24 the lessee covenants as follows :

"Not during the first twenty years of the term hereby granted to use, permit or suffer the demised premises to be used in any way whatsoever for any of the following uses viz. Greengrocers, General Grocers, Restaurant, Licensed Premises (on or off licence), Take away foods, Newsagents, sale of or making of Confectionery."

(b) Under Clause 29 (iii) the lessor covenants

"Not during the term hereof to permit any part of the Reserved Property to be used as a Turf Accountant's Office/Shop." Reserved Property is defined as "that part of the Centre not included in this demise."

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

Assessment - The applicability of Section 4 (1)

5. The Authority considers that Power Leisure Limited and Robert and Mary Tweedy, 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 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 Power Leisure Limited and Robert and Mary Tweedy, 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 Power Leisure Limited (trading as Paddy Power) and Robert and Mary Tweedy, in relation to the lease of the premises at Tyrone Road, Lismore Park, Waterford, notified under Section 7 on 30 September 1992 (notification no. CA/315/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority.

Des Wall

Member

5 October 1993