Notification No:  CA/459/92E ‑ Cranford Properties Ltd/ Power Meats Ltd

Decision No: 196.

Introduction

1.	Notification was made by Power Meats Ltd 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 an agreement relating to leases between Cranford Properties Limited and Albafare and Power Meats Ltd.

The Facts

(a)	Subject of the notification

2.	The notification concerns the leases relating to shop units in Rathfarnham Shopping Centre, Butterfield Avenue, Rathfarnham, Dublin 14 between Cranford Properties Limited as  Lessor and Albafare/Power Meats Ltd as lessees.

(b)	The parties involved

3.	Cranford Properties Limited is the owner and landlord of the Rathfarnham Shopping Centre.  Albafare is an associate company of Power Meats Ltd.  Power Meats Ltd, formerly named Quinnsworth (Rathfarnham) Ltd trades as a supermarket at the shopping centre.

(c)	The notified arrangements

4.	The notified agreement was executed on 17 August 1983 between Albafare, Power Meats Ltd and Cranford Properties Ltd and provides for the amendment of covenants in a number of earlier leases relating to premises in which Albafare holds the lessee interest. The amended restricted user clauses provided for in the agreement notified are as follows:‑

(a)	Under clause 4 the Lessor covenants "Not during the term granted .......to carry on or permit or suffer to be carried on in or upon any part of Rathfarnham Shopping Centre other than the premises described in the Second Schedule and Third Schedule hereto the sale of beers wines or spirits for consumption off the premises and not to permit any tenant or Lessee of any premises in Rathfarnham Shopping Centre other than the lessees of the premises described in the First, Second and Third Schedules hereto and the Lessee of the adjoining premises .......to have an area for the sale of food which is in excess of 1,300 square feet."

The agreement provides that a lease made in 1972 should be read and construed as if this covenant was contained therein. 

(b)	Clause 5 of the agreement contains a similar covenant in relation to a lease made in 1982.
Assessment ‑ The Applicability of Section 4(1)

5.	The Authority considers that Cranford Properties Limited and Albafare and Power Meats Ltd are undertakings and that the notified agreement is an agreement between undertakings.  The agreement has effect within the State.

6.	The Authority considers that the notified agreement, and its exclusive user clause 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 of 10 September, 1993, pp. 665‑667).  The Authority therefore considers that the notified agreement between Cranford Properties Limited and Albafare and Power Meats Ltd 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 Cranford Properties Limited and Albafare and Power Meats Ltd in relation to the leases of the premises at Rathfarnham Shopping Centre, Butterfield Ave, Rathfarnham, Dublin 14 notified under Section 7 on 30 September, 1992 notification no. CA/459/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
3 December 1993