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Town and County Investments Plc / Marspel Ltd [1993] IECA 41 (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/214/92E - Town and County Investments PLC/Marspel Ltd.
Decision
No: 41
Price
£0.30
£0.70 incl. postage.
Notification
No. CA/214/92E - Town and County Investments plc/Marspel Ltd.
Decision
No. 41
Introduction
1. Notification
was made by Marspel Ltd on 29 September 1992 with a request for a licence under
Section 4(2) of the
Competition Act 1991 in respect of a lease between Town and
County Investments plc and Marspel Ltd.
The
Facts
(a) The
subject of the notification
2. The
notification concerns the lease of shop unit 6B at Ballybrack Shopping Centre,
Ballybrack, Co.Dublin between Town and County Investments plc as lessor and
Marspel Ltd. as lessee.
(b) The
parties involved
3. Town
and County Investments plc is engaged in the letting of shop units at
Ballybrack Shopping Centre. Marspel Ltd trading as Newsworld is engaged in the
business of Newsagents at the shopping centre.
(c) The
notified arrangements
4. The
notified shopping centre lease was executed on 4 March 1980 for a term of 30
years from 1 November 1980 between Tesco Stores Ltd and Duffy Group Ltd.
Subsequently Town and County Investments Ltd acquired the lessor interest and
Marspel Ltd acquired the lessee interest. The restricted user clauses in the
lease are as follows:-
(a) Under
clause B.12 the lessee covenants "..... not to use or permit the premises
hereby demised to be used for any purpose other than a retail newsagents shop
and for the sale of goods usually associated with such a shop and for the sale
of toys."
(b) Under
clause D4 the Lessor covenants " The Lessor shall not at any time during the
continuance of this demise.....permit any part of the shopping centre other
than the shop premises hereby demised to be used for the purpose of carrying on
the business of newsagent or permit any other premises to be used principally
for the sale of toys."
(c) Under
clause B.30 the lessor 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.
Assessment
- The applicability of Section 4 (1)
5. The
Authority considers that Town and County Investments plc and Marspel 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 Town and County Investments plc and Marspel 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 Town and County Investments plc and
Marspel Ltd in relation to the lease of the premises at Unit 6B Ballybrack
Shopping Centre notified under
Section 7 on 29 September 1992 (notification
no. CA/214/92E), does not offend against
Section 4 (1) of the
Competition Act,
1991.
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/1993/41.html