COMPETITION AUTHORITY

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

Notification No:  CA/342/92E ‑ Dorcorn Developments Ltd/Manzares Ltd.

Decision No: 47

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Notification No. CA/342/92E ‑Dorcorn Developments Ltd/Manzares Ltd

Decision No. 47

Introduction 

1.	Notification was made by Manzares 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 Competition Authority to issue a certificate, a licence under Section 4(2), in respect of a lease between Dorcorn Developments Ltd and Manzares Ltd.

The Facts

(a)	The Subject of the notification

2.	The notification concerns the lease of unit No 4 in the Dutch Village Shopping Centre, Clondalkin, Dublin 22 between Dorcorn Developments Limited as Landlord and Manzares Ltd as tenant.

(b)	The parties involved

3.	Dorcorn Developments Ltd is engaged in the letting of shop units at the Dutch Village Shopping Centre. Manzares Ltd trades as a newsagent at the shopping centre.

(c)	The notified arrangements 

4.	The notified lease was made on 11 June, l987 for a period of l50 years from l June, l987.  The restricted user clauses in the lease are as follows;

(a)	Under Clause 3.2 (3) the tenant covenants with the landlord  "To keep the demised premises for the purpose of the Tenant's business and to sell therein only the items or class of items as set out in the Fourth Schedule hereto only and not without the Landlord's consent in writing which shall not be unreasonably withheld to use or permit or suffer the same or any part thereof to be used for any other purpose."

(b)	Under clause 3.2 (6) the tenant covenants with the landlord "Not to assign transfer or underlet or part with the possession or occupation of the demised premises or any part thereof ... but so that notwithstanding the foregoing the Landlord shall not unreasonably withhold its consent to an assignment of the entire or underletting of the entire demised premises...."

(c)	The Fourth Schedule to the lease states "The premises are to be used for the sale of newspapers, magazines, periodicals, books, national lottery cards, greeting cards and wrapping paper and the Tenant has exclusive right to sell the items.

The premises may also be used for the sale of apples, oranges, pears, grapes and bananas, minerals (including dispensed minerals) fruit juices, spring water, biscuits, cakes and confectionery, crisps, popcorn .......giftware and cosmetic jewellery.

The premises are not to be used for the sale of dry groceries (other than bread) fruit and vegetables (other than apples, oranges, pears, grapes, bananas) meat, ............... pharmaceutical items (other than anadin, aspro, disprin, rennies, band‑aid)."

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 Manzares Limited and Dorcorn Developments Limited 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 Manzares Limited and Dorcorn Developments Limited 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 Manzares Ltd and Dorcorn Developments Ltd in relation to the lease of the premises at the Dutch Village Shopping Centre, Clondalkin, Dublin 22 notified under Section 7 on 30 September 1992 (notification no. CA/342/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
5 October 1993