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Tallaght S.C. Ltd/Glenberg [1993] IECA 170 (3rd December, 1993)
Notification
No: CA/1006/92E - Tallaght Shopping Centre Ltd/ /Glenberg
Decision
No: 170.
Introduction
1. Notification
was made by Glenberg on 30 September, l992 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 lease between Tallaght Shopping Centre Limited and
Glenberg.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit No l9 at Kilnamanagh Shopping Centre,
Kilnamagh, Dublin 24 between Tallaght Shopping Centre Limited as landlord and
Glenberg as tenant.
(b) The
parties involved
3. Glenberg
is an unlimited company and it is the property holding company of the Peter
Mark Chain of Hairdressing Salons. Tallaght Shopping Centre Limited is the
owner and landlord of the Kilnamanagh Shopping Centre (otherwise described as
Taqllaght Shopping Centre, Kilnamanagh).
(c) The
notified arrangements
4. The
notified lease was made on 6 February, l979 for a period of 99 years from 29
September, l976. The restricted user clauses in the lease are as follows:
(a) Under
clause l0 the tenant covenants with the landlord "Subject to Clause l4 of the
Third Schedule hereto to use the demised premises for the purposes of
hairdressing and fashion and not without the Lessor's consent in writing which
shall not be unreasonably withheld, to use or permit or suffer the same or any
part thereof to be used for any other purpose."
(b) Under
clause 12 the tenant covenants with the landlord "Not to assign sub-let, part
with or share possession of the demised premises or any part thereof save by
way of mortgage by sub-demise without the consent in writing of the Lessor such
consent not to be unreasonably withheld...."
(c) Under
clause l4(c) of the Third Schedule the tenant covenants with the landlord "Not
to change the user of the demised premises to any trade or business the same or
similar to any trade or business being carried on in any other shop, unit or
units, at Tallaght Shopping Centre."
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 Glenberg and Tallaght 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, l993 in respect of shopping centre leases (Iris Oifigiuil of 10
September, l993, pp.665-667). The Authority therefore considers that the
notified agreement between Tallaght Shopping Centre Limited and Glenberg 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 Tallaght Shopping Centre Limited and
Glenberg in relation to the lease of the premises at Kilnamanagh Shopping
Centre, Kilnamanagh, Dublin 24 notified under Section 7 on 30 September 1992
(notification no. CA/1006/92E) does not offend against Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
3
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/170.html