Simon Property Group Inc., the largest mall operator in the United States, is altering decades-old practices alleged to be anti-competitive at one of its New York outlet shopping malls after reaching a $945,000 settlement with New York Attorney General Eric Schneiderman.
The agreement, announced Monday, prohibits Simon from forcing retailers at the Woodbury Common outlet center in Central Valley, New York, to adhere to “radius restrictions” in their leases that could allegedly limit competition in the New York City area. The restrictions prevent tenants from opening a second store within 60 air miles of Woodbury, which according to the attorney general’s press release, created “a vast 11,000 square mile zone in which Simon faced little effective competition from other outlet centers.” Under the new agreement, second stores are limited to a 39-mile radius from Woodbury, with certain exceptions for areas in the Bronx and Manhattan.
