Notification No:  CA/241/92E ‑ Edson Investments Ltd/Tenants of Mullingar Shopping Centre, Fairgreen

Decision No:  264

Introduction

1.	Notification was made by Edson Investments Ltd (Edson) 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 leases between Edson and the tenants of Mullingar Shopping Centre, Fairgreen.

The Facts

(a)	Subject of the notification

2.	The notification concerns the leases relating to 14 units in the Mullingar Shopping Centre, Fairgreen, Mullingar, Co. Westmeath between Edson as Lessor and the tenants.

(b)	The parties involved

3.	Edson as successor in title is the owner and landlord of the Mullingar Fairgreen Shopping Centre.  The tenants are engaged in various retail and service activities at the centre.

(c)	The notified arrangements

4.	The standard shopping centre lease notified contains the following restricted user clauses viz.

(i)	Under clause B.12 the lessee covenants with the landlord   ".......not to use or permit the premises hereby demised to be used for any purpose other than           "

(ii)	Under clause B.30 the lessee covenants

	"(a)	Not to assign, underlet or part with or share the possession of any part of the demised premises

	 (b)	Not to assign, underlet or part with or share the possession of the whole of the demised premises except to a suitable and solvent Lessee and subject to the consent of the Lessor.

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

5.	Edson have supplied details of the permitted user under clause B.12 applying to each lease whereby the tenant is restricted to particular specified retail or service activities. In addition exclusive user has been granted in respect of a number of tenancies including the sale of intoxicating liquor (excluding restaurant sales) and a pharmacy.

Assessment ‑ The Applicability of Section 4(1)

6.	The Authority considers that Edson 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, 1993 in respect of shopping centre leases (Iris Oifigiuil of 10 September, 1993, pp. 665‑557).  The Authority therefore considers that the notified agreements between Edson Investments Ltd and the 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 Edson Investments Ltd and its tenants in relation to the lease of the premises at Mullingar Shopping Centre, Fairgreen, Mullingar, Co. Westmeath, notified under Section 7 on 30 September, 1992 (notification no. CA/241/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
15 December 1993