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Súdny dvor Európskej únie·Rozsudok·11.6.1968

C-29/67

ECLI:EU:C:1968:29

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Súdny dvor Európskej únie
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61967CJ0029

JUDGMENT OF 11. 6. 1968 — CASE 29/67

ditions of sale which are dissimilar or are virtue of this rule undertakings in the not shown in the price list are not com­ steel industry must publish all prices and parable transactions. conditions of sale in their price lists and any subsequent modifications. 4. As the obligations to publish price lists Cf. paragraph 2, summary, Case 1/54, and conditions of sale is contained in a Rec. 1954-1955, p. 11. mandatory provision of the Treaty, it must be regarded as a strict rule of law to 5. Cf. paragraph 2, summary, Case 2/56, which no exception is permitted. By Rec. 1957, p. 13.

In Case 29/67

De Wendel et CIE SA having its registered office in Paris at 1, rue Paul-Baudry, represented by the chairman of its board of directors Emmanuel de Mitry, assisted by Jean-Pierre Aron, Advocate at the Cour d'Appel, Paris, with an address for service in Luxembourg at the offices of the Chambre Syndicale de la Siderurgie Francaise, 49 boulevard Joseph II,

applicant,

v

Commission of the European Communities , represented by its legal Advisers, Guy Sautter and Erich Zimmerman, acting as Agents, with an address for service in Luxembourg at its offices, 2 place de Metz,

defendant,

Application for

— the annulment of a decision of the High Authority of 28 June 1967 in so far as it imposes upon the applicant a fine of FF 160 000 under Article 64 of the ECSC Treaty,

— the annulment of the second sentence of Article 2(1) of Decision No 30/53 of the High Authority of 2 May 1953 (Official Journal ECSC of 4 May 1953, No 6),

THE COURT

composed of: R. Lecourt, President, A. M. Donner and. W. Strauß, Presidents of Chamber, A. Trabucchi, R. Monaco, (Rapporteur), J. Mertens de Wilmars and P. Pescatore, Judges,

Advocate-General: K. Roemer

Registrar: A.Van Houtte

gives the following

DE WENDEL v COMMISSION

JUDGMENT

Issues of fact and of law

I — Facts and procedure ces ('quantity' and 'loyalty' rebates) are justified but render the company liable to a Following a prices check carried out by the sanction for failure to make them public and High Authority at the premises of the that other differences (discounts allowing Société de Wendel from 26 September to for 'the current short-term economic situa­ 12 October 1966, it sent this company a tion' and 'market conditions') are practices letter dated 10 March 1967 alleging that it prohibited by Article 60 and its implement­ had not complied with the rules for publish­ ing provisions. ing prices and price lists and had infringed With regard to the third category of trans­ the principle of non-discrimination (Article actions the part of the decision dealing with 60 of the Treaty and its implementing them is not covered by these proceedings. decisions"). Because of the infringements found by the The Société de Wendel submitted its ob­ High Authority the decision imposes on the servations in a letter of 11 April 1967. At a Société de Wendel a fine of FF 160 000 meeting arranged in Luxembourg by the under Article 64 of the Treaty. High Authority on 25 May 1967 an ex­ This decision, which was notified to the said change of views took place between the company on 3 July 1967, is the subject- parties. matter of this application lodged at the On 28 June 1967 the High Authority made a Court Registry on 1 August 1967. decision imposing a fine on the said com­ The procedure followed the normal course. pany, in which it declared its views on the Upon hearing the report of the Judge- compatibility of transactions and deliveries Rapporteur and the views of the Advocate- already referred to in the letter of 10 March General the Court decided to open the oral 1967 with the beforementioned rules, in procedure without prescribing any mea­ particular: sures of inquiry. (a) Transactions entered into between the The parties presented their oral observa­ applicant and four German motorcar tions at the hearing on 28 February 1968. manufacturers (Volkswagen, Auto- The Advocate-General delivered his opinion Union, Daimler-Benz and Opel) for the at the hearing on 26 March 1968. delivery of their cold-rolled sheets; II — Conclusions of the parties (b) Transactions entered into with twelve French consumers of thin sheets in­ The applicant claims that the Court should: cluding three manufacturers of motor cars (Citroen, Simca and Chausson) and 'annul the decision of the High Authority of seven other customers in respect of 28 June 1967 in so far as it imposes upon the different products; different produc ts; applicant a fine of FF 160 000 under Article (c) Delivery of wire rod to the Bekaert of the Treaty; ;

wire-drawing plant. annul the second and last sentence of Article 2(1) of Decision No 30/53, With regard to the first category of trans­ actions the decision acknowledges that the and order the Commission of the European Communities to pay the costs.' circumstances in which they took place justified the discounts which were allowed The defendant contends that the Court but complains that the applicant has failed should: to comply with the obligation to publish these discounts. 'dismiss the applications as unfounded in With regard to the second category of trans­ every respect with all legal consequences, in actions it confirms that some of the differen- particular with regard to costs.'

JUDGMENT OF 11. 6. 1968 — CASE 29/67

III — Submissions and arguments of concerning the nature of the transactions the parties alleged to be illegal by submitting that each of these transactions has many of the factors Admissibility which render a transaction exceptional in nature (cf. later under the submission The defendant raises no objection to the 'infringement of the Treaty'). admissibility of the application. However only the last of these four factors was examined in the contested decision. The substance With regard to the others this decision merely gives simple statements without any The applicant puts forward in support of its explanation. conclusions the following submissions: — infringement of an essential procedural (b) The second complaint requirement.

The distinction drawn between the two — infringement of the Treaty and the rules relating to its application. groups of transactions in question is all the more difficult to understand because there are three French motor car manufacturers I — Infringement of an essential procedural requirement among the nineteen other customers. Yet the transactions entered into with the latter are similar to those concluded with the The submissions and arguments of the German manufacturers and the benefits parties may be summarized as follows: granted are in the same order of magnitude. The applicant maintains that the statement Notwithstanding this fact the contested of the reasons upon which the decision is decision does not give any of the reasons based is wholly inadequate and does not which caused the High Authority to make comply with the criteria laid down in the such a distinction. The only reference in it to case-law of the Court (Judgment in Case this question relates to the discounts which 1/63), because it does not give the reasons under the designation 'rebates allowing for why the High Authority: variations in current economic trends' — rejected the argument of the Société de (hereinafter referred to as 'conjunctural Wendel that the transactions alleged to rebates') or 'rebates for market conditions' be illegal were 'transactions having ex were allowed to the three French motor car ceptional features'; manufacturers and not to the German — drew a distinction between, on the one manufacturers. The question of the scope of hand, the benefits granted to the German these discounts will be examined in connec motor vehicle manufacturers which were tion with the second submission that the held to be justified and, on the other Treaty has been infringed, but the above- hand, the benefits granted to nineteen mentioned reference cannot be accepted. other customers which were held to be As is shown by the two letters of confirma unjustified; tion, sent by the Société de Wendel re — drew a distinction within this group of spectively to Volkswagen on 15 June 1954 nineteen transactions between the price and to Opel on 22 June 1954 and notified to differences which were held to be justified the High Authority, the discounts in and those which were held to be un question were allowed under the same con justified. ditions in the transactions entered into with The applicant puts forward the following German manufacturers. arguments in support of these complaints: (c) The third complaint (a) The first complaint Similarly the distinction drawn, within the

The Société de Wendel in its letter of 11 group of nineteen transactions between the April 1967 and during the meeting of 25 justified and unjustified price differences is May 1967 attempted to justify its argument not accompanied by any explanation. On

DE WENDEL v COMMISSION

the one hand the only reference to this (a) The first complaint question in the contested measure relates to the application in these transactions of As the contested decision is a decision im different categories of premiums. On the posing a pecuniary sanction, it did not have other hand the annex to this measure merely to discuss in its statement of reasons the mentions the amount of the price differences argument that the transactions alleged to be or premiums which are justified and the illegal were special cases. To ensure that it price differences which are unjustified. was adequate the statement of reasons had However, the importance of the distinction simply to indicate what in the opinion of between these categories of premiums is the High Authority the alleged infringement entirely theoretical and represents no more consisted of, which it did. If the applicant than a purely formal matter of presentation. does not share the view taken by the High The only fact which matters is the actual Authority of the nature of the transactions final price. it may submit that there has been an infrin The defendant replies that the statement of gement of the Treaty but it cannot argue on the reasons upon which the contested this ground that the statement of reasons is decision is based is adequate, as it contains inadequate. all the essential factors which entered into the reasoning of the High Authority in (b) The second complaint connexion with the infringements of which it complained.

It states that according to The contested decision expressly states why the case-law of the Court the High Author it draws a distinction between transactions ity did not have to refute each and every entered into with the four German motor objection raised by the applicant (Judgment car manufacturers and those entered into in Case 2/56) or to repeat in full a discussion with the nineteen French consumers. of the arguments put forward by the appli Sanctions have been imposed in respect of cant during the preparatory inquiries the former for infringement of the obliga (Judgment in Case 27/64). Moreover it tion to make them public.

Sanctions have examined, in order to refute it, an essential been imposed in respect of the others partly point in the applicant's argument relating to for infringement of the principle of non the technical cooperation between the discrimination and partly for infringement Société de Wendel and its customers (cf. of the obligation to make them public. The page 3 of the contested decision). decision also gives the reasons why these In addition, the decision states clearly that four agreements have not been held to be the price differences corresponding to the prohibited practices. quantity and loyalty rebates do not infringe If the applicant takes the view that the High the prohibition against discrimination if Authority has made an incorrect assessment they are applied uniformly to all the cus of the facts that is a complaint relating to tomers concerned, which moreover is in infringement of the Treaty and not to the conformity with the principle contained in inadequacy of the statement of reasons. Article 2(f) of Decision No 31/53.

It also states that a distinction must be made (c) The third complaint between the discounts allowed having regard to the nature of the transactions in The applicant fails to understand the question (rebates for long-standing cus significance of the figures set out in the tomers, loyalty, quantity premiums) and annex to the contested decision. They are those allowed for other reasons, such as the not intended to distinguish between price market conditions or variations in short differences which can be justified because term economic trends and which should they are non-discriminatory and price have been allowed uniformly to all the differences regarded as discriminatory: undertaking's customers. The fundamental their purpose is to determine the value of reasoning on this point upon which the the 'sales effected in disregard' (of Chapter decision is based was moreover explained to V of the Treaty or decisions taken there the applicant at the meeting on 25 May 1967. under) referred to in Article 64 of the

JUDGMENT OF 11. 6. 1968 — CASE 29/67

Treaty, which is the basis upon which the which can extend the scope of his com­ amount of the fine is assessed. The appli­ mercial activities. cant's argument to the effect that the distinc­ The combination of several of these factors tion between 'quantity' or 'loyalty' rebates in one transaction is dufficient to make it an on the one hand and 'conjunctural rebates' allowed in respect of 'market conditions' on exceptional transaction which is not subject to the provisions of Article 60. the other hand is theoretical and represents no more than a purely formal matter of The defendant replies by pointing out that the applicant's argument fails to appreciate presentation, is a matter relating to infringe­ the scope of the principle of non-discrimina­ ment of the Treaty and not to infringement tion enshrined in Article 60(1) of the Treaty of an essential procedural requirement. The prohibition provided by this Article —so far as comparable transactions are II — Infringement of the Treaty and of the concerned—having regard to the first para­ rules of law relating to its application graph of Article 2 of Decision No 30/53 A — The nullity of the contested decision does not apply to transactions 'having exceptional characteristics'. But only those transactions whose charac­ The dispute centres on the following prin­ cipal questions. teristics cannot be repeated can be regarded as 'exceptional'. As such transactions are 1. The nature of the contested transac­ not in fact by their very nature comparable to other transactions it follows by definition tions (infringement of the first sentence that they cannot be discriminatory. of the first paragraph of Article 2 of However the transactions described by the Decision No 30/53) applicant as 'exceptional' do not in fact The applicant states that according to the differ very much from each other. Therefore first sentence of the first paragraph of Article the transactions concluded with the motor

2 of Decision No 30/53 (as amended by car manufacturers relating to large quanti­ Decision No 1/54) 'for a seller to apply ties of thin steel cannot be exceptional prices or conditions departing from those transactions since the seller has entered into

shown in his price list' is not regarded as a similar transactions with a series of other prohibited practice, where the vendor can motor car manufacturers. The transactions show 'that the transaction is question does are in principle comparable if the seller not fall within the categories of transactions delivers the same products (thin steel) in just covered by this price list'. as large quantities to other consumers. However the transactions alleged to be If the applicant's argument were accepted, illegal belong to the category of special the scope of the principle of non-discrimina­ transactions under the beforementioned tion would be severely limited, having decision. The main characteristics to be regard in particular to the volume of sales in noted in this respect are as follows: 1965 of the Société de Wendel in its principal market (France) (52% to 84.4% according — loyalty based on the long-standing nature to the type of product). of the commercial relationship which has Moreover the 'exceptional' nature of the actually existed between the parties; disputed transactions cannot be inferred — the size of the orders in question; from the fact that each transaction had the — the special situation which arises when characteristics which the applicant has the buyer agrees to purchase from the mentioned. producer a percentage—up to 80% — of With regard in particular to the example of his requirements and where the producer technical cooperation an examination of the guarantees at all times to meet this per­ particulars supplied in this connexion shows centage; that: — far-reaching technical cooperation en­ abling the supplier to carry out large- — in the case of a whole series of customers scale improvements of his means of pro­ the agreements concluded with them do duction or to develop new products not provide for any cooperation;

DE WENDEL v COMMISSION

— this cooperation did not in any of the technical cooperation the applicant makes cases go beyond what is normal in trans­ the following observations: actions of this size and for the products — as to the first argument: the expression 'a in question; whole series of customers' only in fact — moreover a certain number of customers refers to four of the twenty-two agree­ have similar relations with other pro­ ments in question and, further, only ducers in respect of the same products. agreements providing for cooperation Finally, the mere fact that there was the between producer and consumer same type of cooperation with a whole throughout the entire term of the agree­ series of customers does not endow the ment are relevant: transactions in question with exceptional — as to the second agreement: the coopera­ characteristics. tion in question does not consist of the The applicant, after stating that it never normal contacts which are established

intended to challenge the principle of non­ for technical purposes between producer discrimination and to criticize Article 60 of and consumer with the object of being the Treaty, replies that the defendant's better able to adapt the quality of the argument cannot be accepted, because product to the wishes of the customers according to the wording of the first senten­ and to the requirements of subsequent ce of Article 2 of Decision No 30/53 (as processing. It consists rather in the amended by Decision No 1/54) a transaction possibility of joint research by the sup­ is exceptional when 'it does not fall within plier and the buyer, and often even by the categories of transactions covered by the latter's customers. Frequently this this price list'. There is therefore no reason research culminates in manufacturing why there should not be a large number of processes branching out in a new direc­ transactions of the same kind as the one in tion and the development of new modi­ question which also fall outside the catego­ fications leading to an advantageous ries of transactions covered by the price list. extension of the producer's markets. The fact that there is a large number of such Such cooperation goes far beyond the transactions ceases to be exceptional. field of normal technical cooperation The statement of defence—the applicant described by the defendant; adds—tries to buttress its argument by com­ — as to the third argument: its meaning is paring the quantities delivered under the hard to understand. If, in the cases disputed transactions with 'total sales in mentioned, what is concerned is an 1965 by the applicant in its principal market 'identical' cooperation added to other (France)'. Apart from the fact that these unique features, the transactions in figures (with the exception of those referring question would also be unique in charac­ to reinforcing bars) do not correspond to ter without thereby causing the agree­ those in the applicant's possession it must be ments concluded by the applicant to lose their own character. made clear that, even if the problem is con­ sidered from the Commission's point of In its rejoinder the defendant explains that a view and the exceptional transactions are transaction is only 'exceptional' if its special considered according to their relative size, characteristics are incapable of being the only criterion to adopt is the number of repeated in other transactions. customers or transactions and the quantities Therefore a large number of transactions supplied under these transactions. which have exactly the same characteristics However if the number of these transactions are not special but comparable. is compared with the total number of French In the present case the transactions alleged customers much lower percentages than to be illegal have characteristics which are those mentioned by the Commission (from normal commercial practices, can be re­ 1.9% to 6.4% according to the type of peated in other transactions and are found product) are obtained. in many of the transactions entered into by Finally with regard to the arguments put the applicant with different customers, forward by the defendant in connexion with since:

JUDGMENT OF 11. 6. 1968 — CASE 29/67

(a) On the one hand, none of the four important points are concerned, which criteria which—taken alone or together also proves that the various transactions —in the opinion of the applicant justify at issue are not exceptional transactions. the classification of the contested trans The defendant concludes its argument by actions as 'exceptional transactions', can pointing out that the contrary view put be applied. forward by the applicant is based on a mis The first and third of these criteria (long understanding. It is the applicant's view that standing relations between the parties the prohibition against discrimination laid and an agreement between them for down in Article 60 of the Treaty does not supplying a large percentage of the preclude the adaptation of its prices policy buyer's requirements) have the charac in each case in accordance with require teristics of loyalty discounts: the second ments of good commercial management, criterion (size of the tonnages in ques and in taking this view it overlooks the fact tion) refers to a feature which may jus that this prohibition, as it must be under tify quantity discounts. stood in the context of this article, implies a However the loyalty discount is a well- strict obligation on the part of the under established current commercial practice taking to standardize its price system. which is compatible with the principle Such a prohibition, accompanied by the of non-discrimination.

Similarly the obligation to make prices public, in fact quantity discount gives rise to a differ cuts down the opportunities of varying entiation which is a common feature of them. Undertakings can undoubtedly apply commercial practice among producers. certain customary commercial criteria and Even if the two criteria (loyalty and allow discounts for quantity or loyalty or quantity) are applied together they no ordinary trade discounts but they cannot more succeed in making the transactions freely negotiate prices for each particular which they affect 'exceptional' than if transaction or vary them. each is applied separately: both dis counts can be shown at the same time in

2. The discriminatory nature of the price the price lists. These transactions are variations applied therefore transactions having 'special characteristics': they are comparable to The applicant maintains that even if certain each other. That is why Article 2(f) of transactions are not exceptional transac Decision No 31/53 (as amended by tions they are nevertheless outside the scope Decision No 2/54) provides for the of Article 60. According to the first sentence publication of these discounts. of the first paragraph Article 2 of Decision Finally with regard to the fourth No 30/53 (as amended by Decision No 1/54) criterion an examination of the facts the application of prices different from produced by way of proof in support of those in the price list is not regarded as a it by the applicant has not shown that prohibited practice if the seller can show the technical cooperation under the 'that the prices.

. . have been departed from transactions in question in fact went uniformly in all comparable transactions'. beyond the normal contacts between It emerges from the documents sent to the producers and purchasers of special High Authority that this uniformity and products. conformity had been observed in the trans (b) On the other hand, a comparison with actions alleged to be illegal. the agreements entered into by the The fact that the agreements refer to price applicant with the nineteen French reductions and increases is not a matter to customers discloses that the main pur which any great weight need be attached, as pose of each of them was substantially this is merely a matter of presentation.

The the same, as is shown in summary form only reason why the transactions are not by the above analysis. In addition to the caught by Article 60 is to be found in the variations relating to the special and final price. Any attempt to establish the specific aspects of each case, these agree illegality of any transactions within the ments are identical so far as a number of meaning of Article 60 on the basis of the

DE WENDEL v COMMISSION

words used to describe any particular pre­ allowed are made up in a different way mium would amount to a total failure to but the final amount of the premium is understand the real nature of the problem. the same. Of course the analysis of these discounts, which is necessary in order to The defendant replies by calling attention to check whether there has been any dis­ the fact that: crimination, muts be based on groups of (a) the Société de Wendel does not deny comparable transactions and then check­ that it granted different price increases ed against categories of consumers. and reductions; Therefore an anlysis of the annex to the (b) even if it is admitted that only the actual contested decision produces thefollow­ final price must be taken into considera­ ing total premiums: 14% for deliveries tion the applicant's argument is not of steel sheets to French motor car valid, because the prices actually ap­ manufacturers; 10% to 12% for plied in this case, although brought deliveries of steel sheets to nine other closer to each other, are appreciably French customers; 8% to 10% for different for the French customers deliveries of wide strip to rolling mills bound by contract; for processing and 4% to 5% for (c) finally, the applicant has not established deliveries of commercial steel to wire- that it allowed all its customers affected drawing firms and manufacturers of by the economic situation or the current nuts and bolts.

economic state of the trade a discount Moreover in speaking of the differentia­ connected with these factors. As the tion of discounts mathematical strict­ current economic state of the trade ness must be avoided in a system as affects all customers in the same way the complicated as the one in this case. It is discount attributable to these factors all the more complicated because the should have been allowed to all cus­ distinguishing feature of the trans­ tomers. actions in question is that many different criteria have to be applied. To The applicant submits the following ob­ consider fixing the amount of the total servations on these three objections raised discounts at a figure equivalent to pre­ in the statement of defence. miums allowed for each of the criteria (a) the Société de Wendel did not infringe which are supposed to be taken into the principle of non-discrimination by account separately would amount to a agreeing different price increases and misunderstanding of the realities of reductions, because the diversity of the commercial life. discounts allowed is explained by the The amount of this rebate and therefore fact that the transactions were not com­ the actual price will depend upon the parable. Annual deliveries of 50 000 relative importance which it is thought metric tons of steel sheets to motor car should be given to each of these criteria, manufacturers (Citroen, Simca) cannot so that it is in practice impossible to be put on the same footing as annual draw up in the form of a price list a deliveries of 5 000 metric tons of com­ table of rebates to be granted. What mercial steel to wire-drawing firms and matters is that rebates of the same order manufacturers of nuts and bolts (Giros, of magnitude be granted in comparable Hermant-Hicquet). circumstances. (b) With regard to the discount mentioned (c) Finally, with regard to the argument in the annex to the contested decision that the applicant sold 'some of its under the columns headed 'loyalty dis­ products at the list price' whereas it counts' and 'conjunctural rebates' their allowed 'discounts for the economic designation is simply a matter of pre­ situation' on others, it is sufficient to call sentation and is of minor importance. attention again to the fact that the ex­ It is only the actual final price which is pressions 'conjunctural rebate' and the decisive factor. Therefore in the 'rebate in respect of market conditions' case of Citroen and Simca the discounts are of purely formal significance and

JUDGMENT OF 11. 6. 1968 — CASE 29/67

that it is only the actual final price which factor (the trend of the market) whereas is relevant. This price can be fixed in the quantity and loyalty discounts are linked case of transactions which are not to a stable pre-established factor (the current, provided of course that the obligations of the customer), and that principle of non-discrimination is ob they are subject to periodic review and to served in relation to comparable trans price variations. It is for this reason that actions (the first paragraph of Article 2 in this case we find that the conjunctural of Decision No 30/53). discounts allowed to individual cus tomers have evolved along almost paral The defendant retorts that in order to ensure lel lines, whereas contractual obligations that the benefits granted by way of loyalty of the customers vary from case to case. and quantity discounts and conjunctural The assertion that the question whether rebates are not discriminatory, they must be there has been discrimination should be uniformly granted in all comparable trans determined not by examining all com

actions. In this case the High Authority parable transactions at a specific point in found that the amount of the discounts was time but by examining categories of not in all cases in keeping with the obliga consumers during the whole of the tions of the customers and emphasized that period under consideration has no legal conjunctural discounts were not allowed to foundation, as all the rules in force refer all customers affected by them. The argu to 'transactions'. Further the figures ments invoked by the applicant on this given on this point in the reply call for point are unfounded, since:

comment. First, the categories have been — The example given in the applicant's chosen arbitrarily and are not the same reply showing that the discounts increase as those shown in the applicant's price or decrease strictly in proportion to the list. Next, the figures do not distinguish value of the order—the differences in the between the types of discounts. Finally, price variations according to the appli they do not explain why greater benefits cant were only found in non-comparable were granted to certain customers for transactions—is not convincing, because several months (for example there were examples proving the contrary could greater price variations between Mouli also be given: 2% for 3 000 or 4 000 nex and Paris-Rhone from May to Sep metric tons and 3% for 2 000 metric tons tember 1965). However the table pro (Moulinex, Labbe, Paris-Rhone) or for duced shows, in spite of these correc 8 000, 8 500, 9 000 metric tons (Schmid- tions, price variations which are all the Soprem, Arthur Martin Behim). more significant because even a differ — The applicant 's argument that there is no ence of 1% to 2% having regard to the distinction between loyalty and quantity amount and high prices of the deliveries discounts and conjunctural discounts is represents a considerable sum. untenable in law and unfounded in fact. Finally the argument that is it necessary, Each discount must in fact satisfy when speaking of the differentiation of objective criteria, because otherwise the discounts, to avoid mathematical strict system of publishing prices, indicating ness is rebutted by the beforementioned specific increases and reductions (sizes, considerations invoked in connexion tolerances, quantity, loyalty) would have with the argument that the possibility of no purpose, reference to transactions fixing different prices and the prohibition which are comparable would no longer against discrimination in Article 60 have any meaning and it would be im cannot be reconciled.

possible to prove under-quoting. The — In addition the view cannot be accepted validity of the said distinction, moreover, that it is impossible to work out at the is found in an analysis of the clauses same time the amounts of the discounts providing for the bonuses in the agree­ according to each of the criteria, even ments alleged to be unlawful. These according to quantitative criteria, and to clauses in fact show that conjunctural establish a system of discounts taking discounts are linked to an unstable into account more than one factor. The

DE WENDEL v COMMISSION

first argument is a mere assertion which is principal German customer. In 1965 the contrary to the express provisions of the discounts, measured against the list prices, rules in force. With regard to the second were 14% and 16.2% for Citroen and Volks­ argument, it is possible to attribute the wagen respectively. It appears therefore to correct importance to each factor once it be inexplicable that the discounts allowed is realized that the various criteria whose the German manufacturers can be regarded meaning has to be ascertained must as justified and the discounts allowed to correspond to objective, and not sub­ French manufacturers regarded as un­ jective factors. justified.

With regard to the argument relating to the 3. The distinction between transactions conjunctural rebates and rebates in respect entered into with German motor car of market conditions allowed to French manufacturers and the other trans­ customers it should be noted: actions — that these designations, as has already The applicant complains that the contested been explained, only have a formal decision regarded the transactions entered significance, as it is only the actual final into with the German motor car manufac­ price which is relevant; — that in any event, so far as current turers as justified and on the other hand economic trends and market conditions qualified the nineteen other transactions are concerned, the German and French with French consumers (including three manufacturers were treated on the same motor car manufacturers) as prohibited footing (as emerges from the two letters practices within the meaning of Article 60. That is a view which is manifestly contrary of confirmation already referred to). to the principle of non-discrimination, in The defendant stresses that the foundation particular so far as the transactions entered of this complaint is the argument that the into with the three French motor car distinction between a conjunctural discount manufacturers are concerned. These trans­ or a discount in respect of market conditions actions are in fact comparable to those and a quantity or loyalty discount is purely entered into with the German manufac­ formal. turers. However, the considerations which have The defendant replies that the contested just been mentioned, and which show that decision did not take exception to the dis­ this distinction exists in fact and objectively, counts allowed to all the motor car manu­ suffice to dispose of this complaint. facturers on the basis of the criteria of Moreover the figures put forward by the loyalty, regular orders and quantity. What applicant in its reply in order to compare the the decision criticized as the additional benefits granted to the two motor car benefits granted to the three French manufacturers, Volkswagen and Citroen manufacturers under the transactions con­ are irrelevant. In the first case the deliveries cluded with them with reference to factors amounted to 5 000-7 000 metric tons per —such as those beforementioned—which month, whereas in the second case they have no bearing on the transactions in amounted to 31 000 metric tons per annum question but which are based on the (that is to say, about 2 500 metric tons per economic situation and current short-term month) which makes the comparison value­ economic trends. less. As the situation and the current economic trends affected all customers, these addition­ B — The illegality of the second sentence al benefits or price variations should have of the first paragraph of Article 2 of been allowed to all of them. Since this was Decision No 30/53 not done the transactions in question are discriminatory. The applicant submits that when the contes­ The applicant replies that the benefits ted measure decided that the justified price granted to the French customers were not differences should have been published higher but lower than those granted to the it disregarded the first sentence of the first

JUDGMENT OF 11. 6. 1968 — CASE 29/67

paragraph of Article 2 of Decision No 30/53 which had not been made public. The which permits the granting of discounts obligation which the applicant has dis similar to those in this rasp regarded in this connexion is found in Moreover, it goes on to say that the com Decision No 31/53 which expressly lays plaint made against the Société Wendel on down that loyalty and quantity discounts this point is based on a provision, the must be made public. second sentence of the first paragraph of the The applicant endeavours to give a more said Article 2 which is null and void. detailed explanation of the contradiction There is in fact a serious contradiction which exists in its view between the two between this sentence and the first sentence relevant sentences of the first paragraph of of the same paragraph. The first sentence Article 2.

It argues in particular that the permits, in the two cases expressly men 'limits' within the meaning of the second tioned, a seller to apply conditions or prices sentence to which the permitted exceptions departing from those shown in his price list. and departures under the first sentence are The second sentence makes these exceptions subject are obviously 'the same as those and variations subject to the price publica imposed upon discounts of every descrip tion rules. In so doing this sentence however tion shown in the price lists'.

The following contradicts the first, because imposing upon contradiction results precisely from this: sellers the obligation to publish, or more 'In certain transactions discounts can be precisely to show in their price lists the allowed which depart from those shown in departures permitted by the first sentence, is the price lists' (first sentence), but ,'at the in practice tantamount to eliminating the same time these discounts cannot be less possibility of departing from the price lists. than those in the price lists' (second sen The second sentence deprives the whole of tence). the first paragraph of Article 2 (as amended) Having made this point the applicant states of its substance and must for this reason be that it has never intended to challenge the

annulled. distinction between discrimination and The defendant states first of all that, as it failure to publish. On the contrary, by understands the position, the application arguing that the wording in the first sentence raises on this point an objection of illegality relating to the principle of non-discrimina with the object, in conformity with the case- tion cannot be affected by the rules relating law of the Court, not of having the said to publicity, it has complied with the judg provision annulled, but of having it ment in Case 1/54 concerning the absence of declared inapplicable. any connexion between the system of non It goes on to point out that there is no con discrimination and the obligation to tradiction between the two sentences of the

publish. first paragraph of Article 2 of Decision No The defendant retorts that the applicant 30/53 (as amended by Decision No 1/54). cannot invoke the judgment of the Court in These provisions are based on the generally Case 1/54 to prove that the second sentence accepted view that the obligation not to discriminate and the obligation to publish of the first paragraph of Article 2 of Deci prices are entirely separate; they have sion No 30/53 contradicts the first sentence, different objectives and impose different since this judgment, which establishes the distinction between discrimination and the

obligations. If it is true in fact that not every departure from the prices and con obligation to publish, refers expressly to the said decision. ditions of sale shown in the price list is discriminatory (first sentence), this does not In addition it points out that the applicant mean, on the other hand, that a departure gives the word 'limits' in the second senten which is not discriminatory is automatically ce of the first paragraph of Article 2 a exempted from all the rules relating to meaning which corresponds neither to the publicity (second sentence). letter nor to the spirit of this provision. It was for this reason that the contested According to its interpretation these 'limits' decision imposed a fine in respect of the are in fact 'those which define the amount of departures which it held to be lawful but the discounts'.

DE WENDEL v COMMISSION

However: The defendant therefore concludes mat

there is no contradiction between the first — the first sentence of this paragraph does and second sentences of the first paragraph not speak of discounts but of 'prices or of Article 2. Price advantages can in fact be conditions departing from those shown non-discriminatory (first sentence) but can in his price list'; nevertheless be granted in violation'of the — neither the first nor the second sentence rules on publication (second sentence): this refers to the amount of the discounts is simply a logical distinction between dis­ but—independently of their amount—­ crimination and infringement of the price considers the price variations in the light publication rules. The second sentence is of the rules relating to non-discrimina­ moreover a simple statement, as the tion and publication; obligation imposed upon undertakings to — the text in question states clearly that publish prices has already been defined by what is concerned is the 'limits appli­ Decisions Nos 31/53 and 37/54 and non­ cable under the price publication rules.' compliance therewith can be punished with However these rules, which for the pur­ a fine under the provisions of Article 64, pose of this case are contained in Deci­ independently of the definition given to sion No 31/53, do not indicate what the prohibited practices (Decision No 30/53). amount of the discounts must be, but Therefore if the second sentence whose merely indicate which departures must meaning is challenged were thought to be be published by undertakings in their inapplicable, the legal position would be the price lists. same. A breach of the duty could in fact be It follows therefore that the 'limits' in penalized under Article 64 even if there were question only refer to the 'price publication no infringement of the prohibition against rules'. Moreover the German text only con­ discrimination contained in Article 60(1). firms this interpretation.

Grounds of judgment

Admissibility

The application, according to its wording, on the one hard seeks the annulment of the decision of the High Authority to the extent to which it imposes upon the applicant a fine of FF 160 000 under Article 64 of the ECSC Treaty and on the other hand the annulment of the last sentence of the first paragraph of Article 2 of Decision No 30/53 of 2 May 1953, as amended by Article 1 of Decision No 1/54 of 7 January 1954.

The application, in so far as it relates to the sanction imposed upon the applicant, constitutes an appeal in which the Court has unlimited jurisdiction under the second paragraph of Article 36 of the Treaty. In fact it challenges the imposition of the sanction on the applicant and disputes its validity on the ground that it is illegal.

This application is admissible.

The application, in so far as it asks for the annulment of the last sentence of the first paragraph of Article 2 (as amended) is out of time and is on this ground alone inadmissible. However, it appears from the context of the application that it in fact

JUDGMENT OF 11. 6. 1968 — CASE 29/67

raises an objection of illegality within the meaning of the third paragraph of Article 36 of the Treaty. It is therefore necessary to consider this objection as a submission supporting the appeal in which the Court has unlimited jurisdiction.

The submission of infringement of the Treaty

A — The duty not to discriminate

The fine which is the subject-matter of the application is imposed first for discri­ minatory practices prohibited by Article 60(1) of the Treaty and by Article 2 (as amended) of Decision No 30/53.

The practices in respect of which a fine has been imposed consisted in the allowance of discounts inspired in particular by reasons concerning the short-term state of the market, in transactions entered into by the applicant with sixteen French consumers.

The applicant complains that by imposing a fine the contested decision infringed the beforementioned provisions as well as the principle of non-discrimination con­ tained in Article 4(b) of the Treaty.

The transactions which the contested decision regarded as prohibited practices do not belong, according to the applicant, to the same category as those shown in its price list but should be regarded as transactions 'having exceptional characteristics', which, for this reason, do not come within the scope of the application of Article 60. It is said that there are several factors in each of these transcriptions which distin­ guish them from those in the categories of transactions shown in the price list and which give them an 'exceptional' character These factors are in particular the longstanding relationships between the parties, the size of the deliveries in ques­ tion, the meeting of a high percentage of the requirements and substantial technical cooperation.

Under the provisions of Article 60(1) of the Treaty discriminatory practices in­ volving the application by a seller of dissimilar conditions to comparable trans­ actions are prohibited. This prohibition is defined by Article 2 of Decision No 30/53 (as amended) under which departures from prices shown in the price list are only permitted if the transaction to which they are applied does not fall within the categories of transactions covered by the price list, or if, the the case of a number of transactions having special features in common, the prices have been departed from 'uniformly'. Therefore a transaction which is not governed by the general criteria for fixing prices is not prohibited by Article 60(1) of the Treaty, as any danger of discrimination is avoided because by its very nature such a transaction is not com­ parable to any other. On the other hand Article 60(1) applies to transactions which, although as compared with normal transactions they have exceptional character­ istics and for this reason obtain the benefit of special conditions of sale, nevertheless remain comparable one with another.

DE WENDEL v COMMISSION

The factors relating to the loyalty of customers and to the quantities bought, which are relied on in this case, are not such as to make a transaction non-comparable.

Such factors are often a typical feature of the commercial relations between pro­ ducers and the processing industry. In addition, with regard to technical coopera­ tion, it appears from the facts put forward by the parties that comparable types of cooperation exist or are provided for in many transactions. With regard to the other transactions this cooperation is not special or exceptional, since its only purpose is to secure the delivery of products capable of meeting the needs of a specialized processing industry or to permit the buyer to carry out an effective check of the quality of the products with which he is supplied. It cannot be concluded after taking all these matters into consideration that the disputed transactions have any 'exceptional characteristics' which remove them from the categories shown in the price list within the meaning of Article 2 (as amended) of Decision No 30/53.

The first argument put forward by the applicant must therefore be rejected.

The applicant submits in the alternative that all the contested discounts are of the same order or magnitude as the price reductions granted to all the other customers; it therefore acted in conformity with Article 2 (as amended) of Decision No 30/53 which does not regard departures from the price list as a prohibited practice if the seller can show that they are applied uniformly in all comparable transactions. In support of this view it argues that in the complicated field of commercial transac­ tions too much weight must not be attached to the various designations of premi­ ums or rebates as their significance is purely formal; the only factor to consider in order to decide whether there have been any discriminatory practices is the final price which is in fact paid by all the buyers in a comparable situation.

The application of an identical or similar final price to several comparable trans­ actions does not of itself remove the possibility of discrimination, for the har­ monization of prices may be achieved by a combination of very different factors or of premiums granted in accordance with arbitrary criteria which vary from case to case. The principle of non-discrimination is only observed to the extent to which each of the factors which have contributed to the fixing of a final identical price has been established according to objective criteria applied uniformly to all com­ parable transactions. On the other hand the distinction between the different categories of premiums, far from being a purely formal matter, must satisfy objective criteria and requirements arising out of the nature of each premium. Loyalty or quantity rebates granted according to features peculiar to each trans­ action are connected with these features in such a way that they do not vary pro­ vided that the transactions are of the same kind.

On the other hand rebates allowing for variation in current economic trends ('conjunctural' rebates) are not connected with such features but are granted

JUDGMENT OF 11. 6. 1968 — CASE 29/67

because of market conditions which affect or are capable of affecting a totality of traders so that they are intended to fluctuate in accordance with periodically recorded changes in the market conditions. Moreover, only an exact specification of the various factors which cause prices to vary to the advantage of certain trans­ actions from those shown in the price list can prevent discrimination against other buyers, who, although they do not benefit from these advantages, may be in a comparable situation. In particular, conjunctural rebates are, for the reasons given above, an example of a discount which other consumers could justifiably claim. Therefore the applicant's argument that the price advantages granted to buyers in comparable situations should be considered 'having regard to all discounts taken together' does not satisfy the requirements of Article 60(1) of the Treaty.

In this case the reasons for the allowance of conjunctural discounts must be sought

in the crisis which affected the common market in steel at that time. Having regard to the principle laid down in Article 60(1) of the Treaty the granting of conjunctural discounts in some only of the transactions referred to in the contested decision can only be permitted if it can be shown that these transactions were not all comparable so far as current economic trends were concerned. In conformity with Decision No 30/53 the onus is on the seller to show that transactions subject to prices or conditions of sale which are dissimilar or which are not shown in the price list are not comparable transactions. Such evidence has not been produced in this case.

Therefore the applicant's second argument must also be rejected.

B — The duty of publication

The fine imposed by the contested decision also penalizes breaches of the obligation to make public price lists and conditions of sale laid down in Article 60(2) of the Treaty and Article 2 of Decision No 31/53 as amended and supplemented by Deci­ sion Nos 32/53, 2/54, 32/56 and 20/63. The breaches in respect of which the fine was imposed relate to discounts which were not made public and were granted in trans­ actions concluded in 1965 between the applicant and twenty-three consumers, nineteen French and four German.

The applicant submits that, since the first sentence of Article 2 (as amended) of Decision No 30/53 permits in certain circumstances exceptions to and departures from the price list, it is inconsistent to maintain that according to the following sentence these exceptions and departures are subject to the price publication rules, for it is impossible to regard as exceptions to or departures from the price fist price advantages which have to be shown in that price list. The applicant's conclusion is that the second sentence destroys the validity of the whole of the said Article 2 and must be annulled.

It follows from Article 60(2) of the Treaty that publication of prices is a method of

DE WENDEL v COMMISSION

achieving the objectives stated in the first paragraph. As this method prescribed by the Treaty is mandatory the obligation to publish price lists and conditions of sale must be regarded as a strict rule of law to which no exception is permitted. By virtue of this rule undertakings in the steel industry must publish all prices and con­ ditions of sale in their price lists and any subsequent modifications. The second sentence of Article 2 (as amended) of Decision No 30/53, far from contradicting the previous sentence, conforms to this rule by providing that amendments of prices and conditions of sale incorporated in the price list shall be made public to the extent to which they apply to comparable transactions. Article 2(f) of Decision No 31/53, supplemented by Decision No 2/54, confirms this requirement by providing expressly that loyalty discounts allowed in such transactions shall be made public.

Therefore, as the contested premiums were regarded as lawful under the first sentence of Article 2 (as amended) of Decision No 30/53 and were applied to com­ parable transactions they should have been published in conformity with the beforementioned provisions and in accordance with Article 60(2) of the Treaty.

Therefore this submission must be rejected.

Moreover, as the amount of the disputed fine was calculated on the basis of the minimum volume of illegal sales recorded it does not appear to be unduly high.

Thus it is not necessary to decide this point.

The submission of infringement of an essential procedural requirement

In addition the applicant submits that the statement of the reasons upon which the contested decision is based is inadequate. In support of this submission it argues first that the decision did not give any reason for the distinction drawn between the price advantages granted to German car manufacturers, which were regarded as justified, and those granted to the nineteen other customers, which were considered to be partly unjustified, and, secondly that it has in addition not given any reason for the distinction between price variations held to be justified and those held to be unjustified within this group of nineteen transactions.

The fact that these two complaints have been raised together is sufficient to show that the allegation that the High Authority distinguished, and even discriminated, between German and French undertakings is without any foundation, since the decision not only regarded the price advantages granted to the German under­ takings but also those allowed to some of the French undertakings as justified. On this point the High Authority only had to give reasons for the sanction which it imposed and did not have to give the reasons which had caused it to regard the applicant's conduct in certain cases in a more favourable light.

JUDGMENT OF 11. 6. 1968 — CASE 29/67

The statement of the reasons upon which the contested decision is based gives the grounds which compelled the High Authority to find that the applicant had in­ fringed Article 60 of the Treaty and to impose upon it the disputed fine. For the reasons for a decision to be adequate, it must contain the factual and legal grounds upon which it is based and there is no need for it to deal with any objections which may possibly be raised against it.

This submission is therefore unfounded.

Costs

Under Article 69(2) of the Rules of Procedure the unsuccessful party shall be ordered to pay the costs. In this case the applicant has failed in all its submissions.

On those grounds,

Upon reading the pleadings; Upon hearing the report of the Judge-Rapporteur; Upon hearing the parties; Upon hearing the opinion of the Advocate-General; Having regard to Articles 2, 3, 4, 33, 36, 60 and 64 of the Treaty establishing the European Coal and Steel Community; Having regard to the Protocol on the Statute of the Court of Justice annexed to the Treaty establishing the European Coal and Steel Community; Having regard to the Rules of Procedure of the Court of Justice of the European Communities, especially Article 69;

THE COURT

hereby:

1. Dismisses the application as inadmissible in so far as it seeks the annulment of the second sentence of Article 2 of Decision No 30/53, as amended by Article 1 of Decision No 1/54 and in all other respects as unfounded;

2. Orders the applicant to bear the costs.

Lecourt Donner Strauß

Trabucchi Monaco Mertens de Wilmars Pescatore

Delivered in open court in Luxembourg on 11 June 1968.

A. Van Houtte R. Lecourt

Registrar President

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Rozsudok C-29/67 – Súdny dvor Európskej únie | AI Pravnik