Clifford Chance

Leasehold use restriction found to breach UK competition law

7 May 2014

A County Court has held that a user clause proposed for inclusion in a renewed lease of retail premises was in breach of the Competition Act 1998.  Consequently, the landlord was unable to restrict the tenant from selling alcohol and groceries in competition with another of the landlord's tenants.  While the judgment is likely to have implications for a relatively limited set of retail leases, those implications are potentially serious.

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