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Cornelscourt S. C. [1993] IECA 49 (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/1015/92E - Cornelscourt Shopping Centre Ltd/Peter Mark.
Decision
No: 49
Price
£0.30
£0.70 incl. postage.
Notification
No. CA/1015/92E -Cornelscourt Shopping Centre Ltd/Peter Mark
Decision
No: 49
Introduction
1. Notification
was made by Peter Mark 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 Peter Mark and Cornelscourt Shopping Centre
Ltd.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of a unit (No. 8) in Cornelscourt Shopping
Centre, Cornelscourt, Dublin 18 between Cornelscourt Shopping Centre Ltd as
landlord and Peter Mark as tenant.
(b) The
parties
3. Peter
Mark is an unlimited company carrying on the business of hairdressing with
approximately 48 outlets in the State including a salon at Cornelscourt
Shopping Centre. Cornelscourt Shopping Centre Ltd is engaged in the letting of
shop units at the centre.
(c) The
notified arrangements
4. The
notified lease was made on 27 September, l99l for a period of 35 years from 30
September, l99l. The restricted user clauses in the lease are as follows:
(a) Under
clause 4(l7) the tenant covenants with the landlord:
"(a) Not
to assign underlet or part with or share the possession control or occupation
of nor to franchise the use of part only of the demised premises;
(b)
Not to assign underlet or part with or share the possession or control or
occupation of nor to franchise the use of the whole of the demised premises
without the consent in writing of the Landlord...."
(b) Under
clause 4(20) the tenant covenants with the landlord:
"Not
to use or occupy the demised premises or any part thereof or permit the same to
be used or occupied for any other purpose than the retail trade or business of
ladies and gents hairdressing salon beauty treatment and solarium and for the
sale of hair and beauty products associated therewith ....."
(c) By
way of side letter attached to the lease the Landlord undertakes that the
tenant "shall have the exclusive right to use the premises for the purpose of
ladies and gents hairdressing salon and for the sale of wigs and for use as a
solarium to the exclusion of all other tenants in the Development ...."
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 Cornelscourt Shopping Centre Ltd and Peter Mark 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 Cornelscourt Shopping Centre Ltd and Peter Mark does
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 agreement between Cornelscourt Shopping Centre Limited
and Peter Mark in relation to the lease of the premises at Cornelscourt
Shopping Centre, Cornelscourt, Dublin 18 notified under Section 7 on 30
September 1992 (notification no. CA/1015/92E), does 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/1993/49.html