Irish Competition Authority Decisions

1. Notification was made by Town and County Investments plc (Town and County) 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 standard lease between Town and County and the tenants at Ballybrack Shopping Centre, Ballybrack, Co. Dublin.

2. The notification concerns the standard lease relating to the letting of shop units at Ballybrack Shopping Centre, Ballybrack, Co. Dublin between Town and County as Lessor and 9 current tenants.

3. Town and County is the owner and lessor of shop units at Ballybrack Shopping Centre. The lessees are involved in various trading activities at the Shopping Centre.

4. The standard shopping centre lease notified is in draft form. The restricted user clauses in the draft lease are as follows:-

(i) Under clause B12 (a) the lessee covenants

".....not to use or permit the premises hereby demised to be used for any purpose other than -------"

(ii) Under clause B30 the lessee covenants

(a) Not to assign, underlet or part with or share the possession of any part of the demised premises.

(b) Not, without the consent of the Lessor, to assign, underlet or part with or share the possession of the whole of the demised premises except to a suitable and solvent Lessee......"

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

5. Town and County have advised that a lease on similar terms applies to each tenant with the user clause 12(a) restricting each tenant to particular specified trading activities. They have also advised that in addition the Lessor has covenanted exclusive user clauses in relation to Unit 2 (Retail pharmacy) and Unit 6B (Newsagent/Sale of toys).

6. The Authority considers that Town and County and the tenants are undertakings and that the notified leases are agreements between undertakings. The agreements have effect within the State.

7. The Authority considers that the standard agreement notified, 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 agreements between Town and County and the tenants do not offend against Section 4(1) of the Competition Act 1991.

8. 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 agreements between Town and County Investments plc and its tenants in relation to the leases of shop units at the Ballybrack Shopping Centre, Ballybrack, Co. Dublin notified under Section 7 on 30 September 1992 (notification no. CA/255/92E), do not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority.

Des Wall

Member

13 October 1993