Irish Competition Authority Decisions

1. Notification was made on 30 September, l992 by John Sutton 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 letting agreement between William Neville and Sons Limited and John Sutton.

2. The notification concerns the letting of a shop unit, Unit 2 at Abbey Centre Shopping Centre, Enniscorthy, Co. Wexford between William Neville & Sons Limited as landlord and John Sutton as tenant.

3. William Neville & Sons Limited is the landlord of the premises at Unit 2, Abbey Shopping Centre, Enniscorthy. John Sutton, trades at Unit 2 as a newsagents/confectioner.

(c) The notified arrangements

4. The notified Agreement for Letting was made on 28 May, l99l for a period of 2 years and 9 months from 25 February, l99l. The restricted user clauses in the agreement are as follows:-

(a) Under clause 2(b) the tenant agrees

"Not to assign sublet or part with or share the possession of the premises or any part thereof or permit any other person or company to occupy the same as a licensee without first obtaining the consent in writing of the Landlord."

(b) Under clause 2(g) the tenant agrees with the landlord as follows:-

"Not to use or occupy the premises or permit the same to be used or occupied otherwise than for the purpose of the Tenant's business as a Newsagency and sale of confectionery and cigarettes or for any purpose or in any manner inconsistent with such user or occupation and in particular not to use same for the sale of groceries, bacon, meats, fruit, fish, vegetables or as a delicatessen take-away food outlet hot bread shop and Turf Accountant .......

(c) Section 4(1) of the special conditions, provides that "The user of the Premises as a Newsagency shall be exclusive to the Premises in so far as the Centre is concerned. The user of the premises for the sale of Confectionery and cigarettes shall be exclusive to the premises in so far as the Mall (crosshatched yellow on the Plan) is concerned but ....

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

5. The Authority considers that William Neville & Sons Limited and John Sutton 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 William Neville & Sons Limited and John Sutton 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 William Neville and Sons Limited and John Sutton in relation to the letting of the premises at Unit 2, Abbey Shopping Centre, Enniscorthy, Co. Wexford, notified under Section 7 on 30 September 1992 (notification no. CA/270/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall

Member

5 October 1993