COMPETITION AUTHORITY

Competition Authority Decision of 5 October 1993 relating to a proceeding under Section 4 of the Competition Act, l99l.

Notification No:  CA/472/92E ‑ Superquinn/D.F. O'Neill (Chemists) Ltd.

Decision No: 44

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Notification No. CA/472/92E ‑ Superquinn/D.F. O'Neill (Chemists) Ltd         

Decision No.  44

Introduction

1.	Notification was made by D.F. O'Neill (Chemists) 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 a lease between Superquinn  and D.F.O'Neill (Chemists) Ltd.

The Facts

(a)	The subject of the notification

2.	The notification concerns the lease of Unit 7 , Superquinn Shopping Centre, Blanchardstown, Co. Dublin between Superquinn  as lessor and D.F.O'Neill (Chemists) Ltd. as lessee.

(b)	The parties involved

3.	Superquinn Ltd is engaged in the business of trading as a Supermarket and the letting of shop units at Blanchardstown Shopping Centre.  D.F. O'Neill (Chemists) Ltd trades as a retail chemist at unit 7 in the Superquinn Shopping Centre at Blanchardstown, Co. Dublin.

(c)	The notified arrangements

4.	The notified shop lease was executed on 6 December 1977 for a term of 30 years from 2 November 1977. The restricted user clauses in the lease are as follows:‑

(a)	Under clause B.12  the lessee covenants "........not to use or suffer to be used the demised premises or any part thereof for any purpose other than as a Pharmaceutical Chemist without the consent of the Lessor under its seal first obtained."

(b)	Under clause B.15 the lessee covenants " Not to assign or under‑let or part with the possession of the demised premises or any part thereof or otherwise alienate same without the previous written consent of the Lessor such consent not to be unreasonably withheld."

(c)	Under clause C.5 the lessor covenants "Not to lease or alienate any part of the Superquinn Shopping Centre, Blanchardstown (save the Supermarket Unit) for use as a Chemist's Shop while the demised premises are used for the purposes specified at clause 12 hereof."

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

Assessment ‑ The applicability of Section 4 (1)

5.	The Authority considers that Superquinn Ltd and D.F. O'Neill (Chemists) Ltd are undertakings and that the notified lease is an agreement between undertakings. The agreement has effect within the State.

6.  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 Superquinn and D.F. O'Neill (Chemists) Ltd does not offend against Section 4 (1) of the Competition Act 1991.

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  Superquinn and D.F.O'Neill (Chemists) Ltd. in relation to the lease of the premises at Unit 7 Superquinn Shopping Centre, Blanchardstown, Co. Dublin notified under Section 7 on 30 September 1992 (notification no. CA/472/92E), does not offend against Section 4 (1) of the Competition Act, 1991.

For the Competition Authority

Des Wall
Member
5 October 1993