Notification No: CA/1006/92E ‑ Tallaght Shopping Centre Ltd/ /Glenberg

Decision No: 170.

Introduction

1.	Notification was made by Glenberg 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 Tallaght Shopping Centre Limited and Glenberg.

The Facts

(a)	Subject of the notification

2.	The notification concerns the lease of unit No l9 at Kilnamanagh Shopping Centre, Kilnamagh, Dublin 24 between Tallaght Shopping Centre Limited as landlord and Glenberg as tenant.

(b)	The parties involved

3.	Glenberg is an unlimited company and it is the property holding company of the Peter Mark Chain of Hairdressing Salons.  Tallaght Shopping Centre Limited is the owner and landlord of the Kilnamanagh Shopping Centre (otherwise described as Taqllaght Shopping Centre, Kilnamanagh).

(c)	The notified arrangements

4.	The notified lease was made on 6 February, l979 for a period of 99 years from 29 September, l976.  The restricted user clauses in the lease are as follows:

(a)	Under clause l0 the tenant covenants with the landlord "Subject to Clause l4 of the Third Schedule hereto to use the demised premises for the purposes of hairdressing and fashion and not without the Lessor'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 12 the tenant covenants with the landlord  "Not to assign sub‑let, part with or share possession of the demised premises or any part thereof save by way of mortgage by sub‑demise without the consent in writing of the Lessor such consent not to be unreasonably withheld...."

(c)	Under clause l4(c) of the Third Schedule the tenant covenants with the landlord "Not to change the user of the demised premises to any trade or business the same or similar to any trade or business being carried on in any other shop, unit or units, at Tallaght Shopping Centre."

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 Glenberg and Tallaght Shopping Centre 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, l993 in respect of shopping centre leases  (Iris Oifigiuil of 10 September, l993, pp.665‑667).  The Authority therefore considers that the notified agreement between Tallaght Shopping Centre Limited and Glenberg 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 Tallaght Shopping Centre Limited and Glenberg in relation to the lease of the premises at Kilnamanagh Shopping Centre, Kilnamanagh, Dublin 24 notified under Section 7 on 30 September 1992 (notification no. CA/1006/92E) does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
3 December 1993