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Tallaght Shopping Centre Ltd/Tenants of Kilnamanagh Shopping Centre [1993] IECA 171 (3rd December, 1993)
Notification
No: CA/877/92E - Tallaght Shopping Centre Limited/Tenants of Kilnamanagh
Shopping Centre
Decision
No: 171.
Introduction
1. Notification
was made by Tallaght Shopping Centre Limited 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 leases between Tallaght Shopping
Centre Limited and its tenants at Kilnamanagh Shopping Centre.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the standard lease relating to shop units (No's 4/7,
l5/l6/l7A, l9/22) in the Kilnamanagh Shopping Centre (also described as
Tallaght Shopping Centre), Kilnamanagh, Dublin 24 between Tallaght Shopping
Centre Limited as landlord and the tenants of the units.
(b) The
parties involved
3. Tallaght
Shopping Centre Limited is the owner and landlord of shop units at Kilnamanagh
Shopping Centre. The tenants are engaged in various trading and service
activities at the shopping centre.
(c) The
notified arrangements
4. The
standard shopping centre lease notified contains the following restricted user
clauses viz.
(a) Under
clause l0 of the Lessee's Covenants the lessee covenants with the landlord
"Subject to Clause l4 of the Third Schedule hereto to use the demised premises
for the purposes of
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 l2 of the Lessee's Covenants the lessee covenants "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 lessee 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 standard lease.
5.
Tallaght Shopping Centre Ltd has supplied details of the permitted user
attaching to each tenancy whereby the tenant is restricted to particular
specified trading activities.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Tallaght Shopping Centre Limited 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 notified agreements, and their restricted and
exclusive user clauses and the other standard restrictive clauses and
obligations, do 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 l0
September, l993, pp.665-667). The Authority therefore considers that the
notified agreements between Tallaght Shopping Centre Limited and its tenants do
not offend against Section 4(1) of the Competition Act, l99l.
The
Certificate
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 Tallaght Shopping Centre Limited and
its tenants in relation to the lease of premises at Kilnamanagh Shopping
Centre, Kilnamanagh, Dublin 24 notified under Section 7 on 30 September 1992
(notification no. CA/877/92E), do 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/1993/171.html