COMPETITION AUTHORITY

Competition Authority Decision of 13 October 1993 relating to a proceeding under Section 4 of the Competition Act, 1991. 

Notification No CA/173/92E ‑ Shannon Town Centre Co. Ltd./ Tenants of Shannon Town Centre.

Decision No:  126

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Notification No CA/173/92E ‑ Shannon Town Centre Co. Ltd/Tenants of Shannon Town Centre

Decision No: 126

Introduction

1.	Notification was made by Shannon Town Centre Co. Ltd on 29 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 Shannon Town Centre Co. Ltd and the tenants at Shannon Town shopping centre.

The Facts

(a)	The subject of the notification

2.	The notification concerns the leases of shop units in Shannon Town shopping centre, Shannon, Co. Clare between Shannon Town Centre Co. Ltd as landlord and 48 tenants of the shopping centre.  

(b)	The parties involved

3.	Shannon Town Centre Co. Ltd is a wholly owned subsidiary of Sisk Properties Ltd and owner of the shopping centre at Shannon Town Centre. The tenants are engaged in various retail and service activities at the centre.

(c)	The subject of the notification

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

(a)	Under clause 2.10 the tenant covenants with the landlord

	"To use the demised premises for the purpose of carrying on the business ..........."

(b)	Under clause 2.12 the tenant covenants with the landlord 

	"Not to assign the whole or any part of the demised premises without the previous consent in writing of the Lessor (but so that such consent shall not be unreasonably withheld) or (b) any part of the demised premises under any circumstances whatsoever......."

In addition, there are a number of other standard restrictive covenants and obligations in the standard lease.
5.	Shannon Town Centre Co. Ltd have advised details of the permitted user clause 2.10 attaching to each tenancy whereby each tenant is restricted to particular specified trading or service activities.

Assessment ‑ The Applicability of Section 4(1)

6.	The Authority considers that Shannon Town Centre Co. Ltd and the tenants at Shannon Town Centre 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 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 1993 in respect of shopping centre leases (Iris Oifigiuil 10 September 1993 pp.665‑667).  The Authority therefore considers that the notified agreements between Shannon Town Centre Co. Ltd and the tenants of Shannon Town Centre 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 Shannon Town Centre Co. Ltd and the tenants of Shannon Town Centre in relation to the lease of shop units at Shannon Town Centre, Shannon Co. Clare, notified under Section 7 on 29 September 1992 (notification no. CA/173/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
13 October 1993