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Irish Life Assurance Plc/Eason and Son Ltd [1993] IECA 105 (13th October, 1993)
COMPETITION
AUTHORITY
Competition
Authority Decision of 13 October 1993 relating to a proceeding under Section 4
of the Competition Act, 1991.
Notification
No. CA/743/92E - Irish Life Assurance Plc/Eason & Son Ltd.
Decision
No. 105
Price £0.30
£0.70 incl. postage
Notification
No: CA/743/92E - Irish Life Assurance Plc/Eason & Son Limited.
Decision
No: 105
Introduction
1. Notification
was made by Irish Life Assurance 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 Irish Life Assurance Plc and Eason
& Son Limited.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of a shop and basement in Block Number IV of
Irish Life Centre, Lower Abbey Street, Dublin between Irish Life Assurance Plc
as lessor and Eason & Son Limited as lessee.
(b) The
parties involved
3. Irish
Life Assurance Plc is engaged in the business of insurance, assurance and fund
and property management and is the owner and landlord of the Irish Life Centre.
Eason & Son Limited is engaged in the business of booksellers, newsagents
and stationers.
(c) The
notified arrangements
4. The
notified lease was made on 1 August, 1979 for a term of 35 years from that
date. The restricted user clauses in the lease are as follows:
(a) Under
clause B.13(a) the tenant covenants with the landlord
"Not
to use the premises for any purpose other than that of retail sale of
newspapers, magazines, books, stationery and greeting cards and also records,
toys, confectionery, cigarettes and all other items normally stocked in Eason
shops, and not to use or permit or suffer the premises to be used for any other
purpose whatsoever".
(b) Under
clause B.26 the tenant covenants with the landlord:
"(a) Not
to assign or underlet or part with possession of the whole of the premises
without the previous written consent of the lessor which shall not be
unreasonably withheld.
"(b) Not
to assign transfer charge underlet or part with possession of any part of the
premises".
(c) Under
clause C(d) the Lessor covenants
"Not during the term to carry on or permit to be carried on by others in or
upon the adjoining premises of the Lessor or elsewhere in the Main Mall
........the trade or business of retail sale of newspapers, magazines, books,
stationery and greeting cards......"
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
Assessment
- The Applicability of Section 4(1)
5. The
Authority considers that Irish Life Assurance Plc and Eason & Son 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 Irish Life Assurance Plc and Eason & Son Limited
does not offend against
section 4(1) of the
Competition Act, l99l.
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 Irish Life Assurance Plc and Eason
& Son Limited in relation to the lease of the premises at the Irish Life
Centre, Lr. Abbey St., Dublin 1 notified under
Section 7 on 30 September 1992
(notification no. CA/743/92E), does not offend against
Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
13
October 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/105.html