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Dunloe House Group plc/ Peter Mark [1993] IECA 176 (3rd December, 1993)
Notification
No:CA/1012/92E -Dunloe House Group plc/Peter Mark
Decision
No: 176.
Introduction
1. Notification
was made by Peter Mark 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 Peter Mark and Dunloe House Group plc.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit No 10 of the Merrion Shopping Centre,
Merrion Rd, Dublin 4 between Dunloe House Group plc as Lessor and Peter Mark as
lessee.
(b) The
parties involved
3. Peter
Mark is an unlimited company carrying on the business of hairdressing with
approximately 48 salons in the State. Dunloe House Group plc is a public
limited company and is the owner and landlord of shop units at Merrion Shopping
Centre.
(c) The
notified arrangements
4. The
notified lease was made on 20 June, l990 for a period of 35 years from l April,
l990. The restricted user clauses in the lease are as follows:
(a) Under
clause 3.C(18) the lessee covenants "Throughout the said term to use the
Demised Unit solely for the purposes of a ladies and gents hairstylist, beauty
treatment and sale of hair and beauty products and solarium and for such other
purpose as the Lessor and the Management Company shall approve of in writing
subject to the other terms hereof but not further or otherwise hereinafter
called "the Permitted User"
PROVIDED
ALWAYS
that with the previous consent in writing of the Lessor and the Management
Company (not to be unreasonably withheld) the Demised Unit may be used for some
other retail trade or business...."
(b) Under
clause 3.C(40) the lessee covenants "Not to assign, transfer, underlet, or part
with the possession or occupation of the Demised Unit or any part thereof or
suffer any person to occupy the Demised Unit or any part thereof as a licensee
But
So That Notwithstanding
the
foregoing the Lessor shall not unreasonably withhold its consent to an
assignment of the entire Demised Unit..."
(c) In
a supplemental letter to the lease dated 21 June, l990, the lessor stated "We
confirm that we will not make a first letting of any of our Units other than
Unit l0 in the property known as Merrion Shopping Centre permitting the user
thereof as a ladies hairdressers."
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Peter Mark and Dunloe House Group plc are undertakings
and that the notified lease is an agreement between undertakings. The
agreement has effect within the State.
7. 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 Dunloe House Group plc and Peter Mark does 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 agreement between Dunloe House Group plc and Peter Mark
in relation to the lease of the premises at Merrion Shopping Centre, Merrion
Rd, Dublin 4 notified under Section 7 on 30 Septembher 1992 (notification no.
CA/1012/92E), 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/1993/176.html