Notification No: CA/839/92E ‑Castlebrook Investments Ltd/Tenants of Newbridge Shopping Centre

Decision No.  244

Introduction

1.	Notification was made by Castlebrook Investments 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 Authority to issue a certificate, a licence under Section 4(2) in respect of a lease between Castlebrook Investments Limited and the tenants of Newbridge Shopping Centre.

The Facts

(a)	The subject of the notification

2.	The notification concerns the lease of the shop units in Newbridge Shopping Centre, Newbridge, Co Kildare, between Castlebrook Investments Limited, the landlords, and the tenants of 19 shop units at the centre.

(b)	The parties involved

3.	Castlebrook Investment Limited is the Landlord of Newbridge Shopping Centre. The tenants are engaged in various retail and service activities at the centre.

(c)	The notified arrangements

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

(i)	Under clause 4(16) the tenant covenants

	"(a)	Not to assign underlet or part with the possession control or occupation...of part only of the demised premises.

	 (b)	Not to assign underlet or part with the possession control or occupation ...of the whole of the demised premises without the consent in writing of the Landlord first obtained which consent shall not be unreasonably witheld....."

(ii)	Under clause 4(19) the tenant covenants "Not to use or occupy the demised premises or any part thereof or permit the same to be used or occupied for any purpose other than the                                                   nor in any manner inconsistent with such user or occupation except with the consent in writing of the Landlord (such consent not to be unreasonably witheld) but......"

In addition, there are a number of other standard restrictive covenants and obligations in the lease.

5.	Castlebrook Investments Ltd has supplied details of the permitted user under clause 4(19) applicable to each lease whereby each tenant is restricted to particular specified trading or service activities.

Assessment ‑ The applicability of Section 4(1)

6.	The Authority considers that Castlebrook Investments Limited and the tenants of Newbridge Shopping Centre 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 1993 in respect of shopping centre leases  (Iris Oifigiuil 10 September 1993, pp.665‑667). The Authority therefore considers that the notified agreements between Castlebrook Investments Limited and the tenants of Newbridge Shopping 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 Castlebrook Investments Limited and the tenants of Newbridge Shopping Centre in relation to the lease of premises at Newbridge Shopping Centre, Newbridge, Co. Kildare, notified under Section 7 on 30 September 1992 (notification no. CA/839/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
15 December 1993