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Hoorn & Winkel (Ireland)/Tenants of Ballinteer S.C. [1993] IECA 150 (3rd December, 1993)
Notification
No CA/300/92E - Hoorn & Winkel (Ireland) Limited/ Tenants of Ballinteer
Shopping Centre.
Decision
No: 150
Introduction
1. Notification
was made by Hoorn & Winkel (Ireland) 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 leases between Hoorn & Winkel
(Ireland) Limited and its tenants at Ballinteer Shopping Centre.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the leases relating to the letting of shop units at
Ballinteer Shopping Centre, Ballinteer Ave., Dundrum, Dublin 16 between Hoorn
& Winkel (Ireland) Limited as landlord and the tenants of 8 units at the
shopping centre.
(b) The
parties involved
3. Hoorn
& Winkel (Ireland) Limited is the owner and landlord of the Ballinteer
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.
(a) Under
clause 2 the landlord and the tenant agreed
"...that
the said premises are demised for use for the purposes hereinafter more
particularly described and for any further purpose which may with the consent
of the Landlord as hereinafter provided be authorised under or by virtue of the
Local Government (Planning & Development) Act, l963."
(b) Under
clause 12 the tenant covenants with the landlord
"To
use the demised premises for the purpose of
only
and not without the Landlord's consent in writing which shall not be
unreasonably withheld or use or permit or suffer the same or any part thereof
to be used for any other purpose."
(c) Under
clause 14 the tenant covenants with the landlord
"Not
to assign sub-let part with or share possession of the demised premises or any
part thereof without the consent in writing of the Landlord (such consent not
to be unreasonably withheld) ..."
In
addition, there are a number of other standard restrictive covenants and
obligations in the standard lease.
5. Hoorn
& Winkel have furnished details of the permitted user under clause 12
attaching to each lease whereby the tenant is restricted to particular
specified trading or service activities.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Hoorn & Winkel (Ireland) Limited 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, l993 in respect of shopping centre leases (Iris Oifigiuil of l0
September, l993, pp. 665-667). The Authority therefore considers that the
notified agreements between Hoorn & Winkel (Ireland) Limited and its
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 Hoorn & Winkel (Ireland) Limited
and its tenants in relation to the lease of the premises at Ballinteer Shopping
Centre, Ballinteer Ave, Dundrum, Dublin 16 notified under Section 7 on 30
September, l992 (notification no. CA/300/92E), do not offend against Section
4(1) of the Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
3
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/150.html