Superquinn/Tenants at Superquinn S. C., Blanchardstown

Factual and Procedural Background

On 30 September 1992, Company A submitted a notification requesting a certificate under Section 4(4) of the Competition Act, 1991, or alternatively a licence under Section 4(2), concerning standard shopping leases between Company A as lessor and the tenants of a shopping centre located in The City, The State. The leases pertain to shop units Nos. 3 to 12, 12A, and 14/17 within the shopping centre. Company A operates as a supermarket and lessor of shop units, while the tenants engage in various retail and service activities.

The notified lease, exemplified by a lease executed on 21 December 1977 for a 30-year term between Company A and a tenant (referred to as the Lessee), includes restrictive covenants limiting the use of premises to specific retail purposes and restricting assignment or subletting without written consent. Similar restrictive and exclusive user clauses apply across other leases, limiting tenants to specified trading activities and restricting the presence of competing businesses in certain categories within the shopping centre, except for the supermarket.

Legal Issues Presented

1. Whether the agreements between Company A and its tenants, including restrictive and exclusive user clauses, have the object or effect of preventing, restricting, or distorting competition in trade in goods or services within The State.
2. Whether such agreements offend against Section 4(1) of the Competition Act, 1991.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Competition Authority assessed that both Company A and the tenants qualify as undertakings and that the leases constitute agreements between undertakings within The State. The Authority examined the standard leases, including their restrictive and exclusive user clauses, and concluded that these agreements do not have the object or effect of preventing, restricting, or distorting competition in the relevant markets. This conclusion was supported by reference to a prior Notice issued by the Authority regarding shopping centre leases, which provided reasoning for the non-application of Section 4(1) of the Competition Act, 1991 in such contexts.

Holding and Implications

The Competition Authority certifies that, based on the facts before it, the agreements between Company A and its tenants relating to the lease of shop units at the shopping centre do not offend against Section 4(1) of the Competition Act, 1991.

The direct effect of this decision is that the notified leases are lawful under the Competition Act, 1991, and no enforcement action arises from these agreements. The opinion does not establish new legal precedent beyond this certification.