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Crumlin Investments Ltd/ Tenants at Crumlin S. C. [1993] IECA 48 (5th October, 1993)
COMPETITION
AUTHORITY
Competition
Authority Decision of 5 October 1993 relating to a proceeding under Section 4
of the Competition Act, l99l.
Notification
No: CA/844/92 - Crumlin Investments Ltd/Tenants at Crumlin Shopping Centre.
Decision
No: 48
Price
£0.30
£0.70 incl. postage.
Notification
No CA/844/92 - Crumlin Investments Ltd/Tenants at Crumlin Shopping Centre
Decision
No: 48
Introduction
1. Notification
was made by Crumlin Investments 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 the standard lease between Crumlin Investments Ltd
and the tenants at Crumlin Shopping Centre.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the standard shopping centre lease for Crumlin Shopping
Centre, Crumlin Rd. Dublin 12 between Crumlin Investments Ltd and 43 tenants at
the Shopping Centre.
(b) The
parties involved
3. Crumlin
Investments Ltd is engaged in the letting of shop units at Crumlin Shopping
Centre. The tenants are engaged in various retail and service activities at
Crumlin Shopping Centre.
(c) The
notified arrangements
4. The
notified standard shopping centre lease is in draft form with Crumlin
Investments Ltd shown as landlord. The restricted user clauses in the draft
lease are as follows:-
(a) Under
clause 4 (20) the tenant covenants with the landlord "Not to use or occupy
the demised premises or any part thereof ..... except with the consent in
writing of the Landlord ..... for any other purpose than the retail trade or
business of
.......
(b) Under
clause 4(17) the tenant covenants
"(a) Not
to assign underlet or part with the possession control or occupation of nor to
franchise the use of part only of the demised premises.
(b) Not
to assign underlet......of the whole of the demised premises without the
licence in writing of the Landlord first obtained........
In
addition, there are a number of other standard restrictive covenants and
obligations in the standard lease.
Crumlin
Investments Ltd has advised that user clause 4 (20) as above is applied to each
lease so that each tenant is restricted to particular specified trading or
service activities.
Assessment
- The Applicability of Section 4(1)
5. The
Authority considers that Crumlin Investments Ltd and the tenants are
undertakings and that the notified leases are agreements between undertakings.
The agreements have effect within the State.
6. 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 Crumlin Investments Ltd and the tenants do 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 agreements between Crumlin Investments Ltd and the
tenants in relation to the leases of the premises at Crumlin Shopping Centre,
notified under
Section 7 on 30 September 1992 (notification no. CA/844/92), do
not offend against
Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
5
October 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/48.html