EUR-Lex - 31975D0781 - EN
31975D0781
European Union
§ Article 85
Article 85 (1) of the EEC Treaty prohibits, as incompatible with the common market, all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the common market.
The conditions of sale jointly framed and applied by all the members of Bomée-Stichting constitute a decision by an association of undertakings within the meaning of Article 85 (1).
Clause 10 (1), (3) and (5) and Clause 11 of this decision of the trade association have as their object and effect the restriction of competition within the common market since they are designed to ensure that all trade passes exclusively through the distribution channels collectively recognized by the parties. The resulting restrictions have noticeable effects on the relevant markets in view of the number and size of the firms involved and of the large range of worldrenowned articles and products on the Bomée list. Furthermore, these are standard conditions to which an unlimited number of firms may become party.
Clause 10 (1) of the 1974 Bomée conditions, whereby manufacturers and importers who are members of the association may supply Bomée articles in the Netherlands only to wholesalers and retailers who have accepted the Bomée conditions, means that other dealers are unable to obtain Bomée articles from the manufacturers or importers and that the manufacturers and importers are prevented from supplying dealers who have not accepted the Bomée conditions. The effect of this is to restrict the business freedom of manufacturers, of importers and of dealers who have not accepted the Bomée conditions.
Clause 10 (3) of the 1974 Bomée conditions, under which wholesalers who have accepted the Bomée conditions may supply Bomée articles in the Netherlands only to retailers who have accepted the Bomée conditions, and Clause 10 (5), under which these retailers may sell Bomée articles in the Netherlands only to the consumer, prevent wholesalers and retailers from supplying other Dutch dealers at the same stage of distribution as themselves, who would be free to resell the products on terms that might be better for the consumer. Similarly they cannot supply other Bomée wholesalers, and wholesalers cannot supply the consumer.
Clause 11 of the 1974 Bomée conditions, under which wholesalers must obtain Bomée articles only from member manufacturers and importers and under which retailers may only obtain them from manufacturers or importers or their appointed wholesalers, restricts the freedom of wholesalers and retailers to buy from other Dutch suppliers.
The investigation of this case discloses that these restrictions on competition form a coherent and carefully adjusted system which is collectively applied and imposed by the members on wholesalers and retailers, and which clearly has as its object and effect the elimination of competition between the market participants concerned and other dealers and to ensure that as far as possible trade in Bomée articles in the Netherlands is channelled through the manufacturers, importers, wholesalers and retailers participating in the Bomée system. The effect of these restrictions is to consolidate existing distribution structures and the positions of the undertakings concerned on the relevant markets in such a way that new market entrants and firms which refuse to accept the Bomée conditions, such as Maxis BV, find it difficult to penetrate the market. The Bomée system makes it particularly difficult for market positions to be modified by the free play of competition.
The scope of the appraisal is not affected by the consideration that the Bomée conditions have been modified since 19 December 1974 in order to permit the parties to purchase the products concerned in other Member States for resale. The amendment of the Bomée product description which came into force on 25 August 1975 and which limited this description to those products marketed in the Netherlands, served only to clarify the initial easing of the conditions. Neither modification takes the 1974 Bomée conditions out of the scope of the prohibition contained in Article 85 (1). Serious obstacles still exist, particularly with regard to the marketing in the Netherlands of those products which are imported by the members themselves. These products may not be distributed freely by importers, wholesalers and retailers (the traders on the relevant market), but only through the prescribed distribution channels. Importers are not free to deliver to any wholesaler or retailer and neither the member wholesalers nor retailers may sell their merchandise within their respective groups. Therefore the means by which imported products penetrate the Dutch market are not the result of individual decisions by the parties on the different distribution levels, but are influenced by the restrictive agreements which the parties have concluded with their competitors.
The restrictive clauses referred to above may substantially affect trade between Member States within the meaning of Article 85 (1) of the Treaty in that they apply to goods which are mainly imported from other Member States and sold in the Netherlands. Trade flows may therefore be deflected from their natural course and trade between Member States affected (1).
They further have the effect of consolidating the division of the common market into national markets, which goes against the economic interpenetration aimed at by the Treaty, in that they make it difficult for manufacturers and dealers in other Member States to do business on the Dutch market (2).
In view of the size and number of the firms which belong to Bomée-Stichting, of the large number of dealers who accept the Bomée conditions, and of the range and reputation of the branded articles to which the conditions apply, the restrictive clauses discussed above have a substantial effect on trade between Member States in a manner detrimental to the creation of a single market.
Although the adverse effect upon trade between Member States is mitigated by the opportunity, first given on 19 December 1974 and later confirmed on 25 August 1975, for the wholesalers and retailers concerned to obtain supplies direct from other Member States, this relaxation of the rules does not compensate for the collective and cumulative effect of the restrictions referred to above, to which the admission of the products imported into the Netherlands by the members themselves remained subject.
Clause 10 (1), (3) and (5) and Clause 11 of the 1974 Bomée conditions accordingly fall within the scope of Article 85 (1) of the Treaty establishing the EEC.
III. Applicability of Article 85 (3) of the EEC Treaty
Under Article 85 (3), the provisions of Article 85 (1) may be declared inapplicable in the case of any agreement between undertakings or any decision by associations of undertakings which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not: (a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives;
(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question.
The 1974 Bomée conditions cannot be exempted under Article 85 (3) as they do not satisfy these tests.
First, they do not contribute in any way to improving the production or distribution of goods or to promoting technical or economic progress. Analysis of the restrictive clauses and the explanation supplied by representatives of the association have made it clear that the principal aim of the Bomée system is to give the member firms, through a set of collective measures, the assurance that the largest possible share of sales of the relevant products in the Netherlands will be handled by them. The restrictions consisting of exclusive sale and purchasing commitments do not contribute to improving the distribution of the relevant product. These restrictions, on the contrary, provide a market protection arrangement so that other dealers are excluded from a distribution network which helps to ensure that as far as possible the production and import of Bomée articles in the Netherlands is reserved for Bomée members.
Furthermore, virtually all licensed manufacturers and concessionaire importers of well-know branded products in the Netherlands belong to Bomée-Stichting. Outsiders are too few and too small to exert any real influence on the market, especially as the products they are offering are not so widely distributed as Bomée articles. In any event competition should exist not only between member and non-member dealers selling articles under different brands, but also between different dealers in articles of the same brand, and, as has been seen, it is this latter form of competition that the Bomée system sets out to eliminate. (1)See decision by the European Court of Justice on 15 May 1975 in Case No 71/74, FRUBO. (2)See decision by the European Court of Justice of 17 October 1972 in the Case No 8/72, Vereeniging van Cementhandelaren.
Accordingly, the restrictive clauses in the 1974 version of the Bomée conditions of sale do not qualify for exemption under Article 85 (3) of the EEC Treaty.
IV. Applicability of Article 3 (1) of Council Regulation No 17
§ Article 3
Article 3 (1) of Regulation No 17/62 provides that where the Commission, upon application or upon its own initiative, finds that there is infringement of Article 85 of the EEC Treaty, it may by decision require the undertaking or associations of undertakings concerned to bring the infringement to an end.
As it is clear from the facts set out herein that Bomée-Stichting is in infringement of Article 85 of the EEC Treaty, it should accordingly be required to bring the infringement to an end without further delay,
HAS ADOPTED THIS DECISION:
§ Article 1
Article 1
Clause 10 (1), (3) and (5) and Clause 11 of the 1974 Bomée conditions as contained in the final version dated 25 August 1975 constitute an infringement of Article 85 (1) of the Treaty establishing the European Economic Community.
§ Article 2
Article 2
The application to Bomée-Stichting for extension under Article 85 (3) is refused.
§ Article 3
Article 3
Bomée-Stichting shall bring the infringement to an end forthwith by ceasing to apply the offending clause referred to in Article 1.
§ Article 4
Article 4
This Decision is addressed to Bomée-Stichting, Bezuidenhoutseweg 193, PO Box 2185, 's Gravenhage, the Netherlands.
Done at Brussels, 21 November 1975.
For the Commission
A. BORSCHETTE
Member of the Commission
Metadata
- Type
- Afgørelse
- År
- 1975
- Ikrafttrædelsesdato
- 1. januar 1970