C-264/95
ECLI:EU:C:1996:302
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COMMISSION ν UIC
OPINION OF ADVOCATE GENERAL LENZ delivered on 11 July 1996 *
A — Introduction 3. The Commission's proceeding concerned the conditions laid down by the Interna tional Railway Union — Union Internation ale des Chemins de Fer (hereinafter 'the UIC') — for the marketing by travel agents of international tickets for the carriage of passengers by rail. The railway companies involved in such international passenger transport cooperate in providing the relevant services. The price of a ticket generally cor responds to the total value of the fares pay 1. This appeal affords the Court for the first able for the relevant sections of the journey time an opportunity to rule on the demarca for which the different railway companies tion of the respective fields of application of are responsible. Operations are cleared after Council Regulation N o 17 of 6 February the event between the railway companies so 1962 — first regulation implementing that each receives the fraction of the ticket Articles 85 and 86 of the Treaty 1 — and price corresponding to the part of the service Council Regulation (EEC) N o 1017/68 of 19 which it provided. July 1968 applying rules of competition to transport by rail, road and inland water way. 2
4. Each international tickets can be sold either by the railway companies directly or by accredited travel agents. The travel agents receive commission on the tickets, from each of the railways providing the transport, which is calculated in accordance with the proportion of the revenue received by each 2. This appeal has been brought against the railway. A railway company which sells judgment of the Court of First Instance of 6 international tickets directly also receives June 1995, 3 in which that Court declared commission from the other railway compa void Commission Decision 92/568/EEC of nies providing the transport. 25 November 1992 4 relating to a proceeding under Article 85 of the E C Treaty.
* Original language: German. 5. Leaflet N o 130 on travel agents drawn up 1 — OJ, English Special Edition 1959 -1962, p. 89. by the U I C in 1952, as repeatedly updated, 2 — OJ, English Special Edition 1968 (I), p. 302. 3 — Case T-14/93 UIC ν Commission [1995] ECR II-1503. (hereinafter 'Leaflet N o 130') governs certain 4 — OJ 1992 L 366, p. 47. aspects of relations between the railway
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companies and travel agents. The provisions 8. Article 4 of Leaflet N o 130 refers to in issue are quoted at length in the judgment Appendix 4 to the Leaflet for details of the of the Court of First Instance. Accordingly, commission rates to be paid. According to only the most important points will be con that appendix, the rate of commission paid sidered here. by the railways of 11 of the 12 Member States of the Community at that time to travel agents authorized by a foreign railway was 10%. 6
6. Under Article 1.1 of Leaflet N o 130, According to Article 4.3 of the Leaflet com travel agents are accredited by the main rail mission was, 'in principle, ... uniformly set at way of the country in which they are 10%.' located. Authorization to sell international tickets is subject in principle to the agree ment of the other railways providing the transport. However, railways can make pro vision for exceptions to this rule in agree ments concluded amongst themselves. 9. Article 1.3 of Leaflet N o 130 recommends railways to use the provisions of the model contract in Appendix 1 to the Leaflet when drawing up agreements with travel agents. In Article 4.3 of that model contract a travel agent undertakes, inter alia, 'not to favour by its publicity, by its proposals and also by its advice to the public, the traffic of means 7. Article 3.2 of Leaflet N o 130 obliges the of transport competing with the Railways'. railways inter alia to pay commission on Articles 4.6 and 4.7 of the model contract their share of international tickets to travel stipulate that the travel agents must sell the agents where the latter have not issued the tickets at the fares notified by the railways. tickets themselves but have bought them from the railway which accredited them. This applies where the agreement between the travel agents and the railway concerned does not allow them to issue tickets them selves. It is recommended that the railways grant 'a lower rate of commission (5%) on 10. In its decision the Commission con the tickets purchased in this way than that cluded that the U I C had breached Article applied in the case of tickets issued by the 85(1) of the Treaty by adopting and circulat- Travel Agencies themselves ...'
6 — Only the Italian railway granted commission of 6% on tick ets bought at stations and 9 % on tickets issued by travel 5 — Cited in footnote 3; at paragraph 4 et seq. agents.
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ing Leaflet N o 130. It noted the following The Commission also imposed a fine of specific breaches: E C U 1 000 000 on the U I C in respect of those infringements (Article 3 of the Decision).
' — control of the appointment of agents by each national railway company;
11. The U I C then brought an action before the Court of First Instance seeking the annulment of the Commission's decision. In the alternative, it sought the annulment of Article 3 of the Decision or a reduction in — the joint laying-down of conditions gov the fine. erning the granting of commissions;
— the setting of a standard rate of commis In support of its principal claim the applicant sion; put forward a plea alleging that the Commis sion had wrongfully based its Decision on Regulation N o 17 rather than on Regulation N o 1017/68. It further argued that the Com mission decision was in breach of Articles 85(1) and 85(3) of the Treaty and Article 5 of Regulation N o 1017/68. It also claimed that its right to a fair hearing had been infringed. — the requirement that agents must make Finally, it pleaded that the statement of rea out and sell tickets at the official fares sons of the Commission decision was inad indicated in the tariffs; equate.
— the requirement that agents must not favour competing means of transport in 12. The Court of First Instance confined their offers or advice to the public'. 7 itself to considering the first of the above- mentioned pleas alleging that the Com mission wrongfully applied Regulation 7 — Article 1 of the decision (cited in footnote 4). N o 1017/68.
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13. In the decision in issue, the Commission ation. That judgment was not concerned set out three reasons justifying its having with the interpretation of Regulation N o based itself on Regulation N o 17 rather than 1017/68. Even if it were to be assumed that 8 on Regulation N o 1017/68. It asserted, in selling a ticket a travel agent was supply first, that U I C Leaflet N o 130 governed the ing a service 'on an entirely independent accreditation of travel agencies and the sale basis', that consideration would not alone of tickets by them. It argued that 'this activ suffice for Regulation N o 1017/68 to be ity does not relate "directly" to the provision inapplicable. It was true that a travel agent of transport services' as required by the third provided a service to the railway concerned. recital of Council Regulation N o 141 of 26 The provision of that service by a travel November 1962 9 exempting transport from agent on behalf of and under a contract of the application of Council Regulation N o agency with the railway formed the principal 1 7 . 1 0 Secondly, in its judgment in the VVR object of the accreditation of the travel agent case, 1 1the Court of Justice had already ruled that travel agents provided services on an by the railway and therefore did concern the independent basis. Such independent activity provision of transport (paragraphs 37 to 42 did not concern the provision of transport, of the judgment). which was effected exclusively by the rail way companies. Thirdly, travel agents were not among the 'providers of services ancil lary to transport' referred to in the second sentence of Article 1 of Regulation N o 1017/68.
14. The Court of First Instance considered 16. The Court of First Instance then pointed those arguments in paragraphs 36 to 56 of its out that, while the third recital in the pre judgment. amble to Regulation N o 141 might be an important factor in the legislative framework of which it formed a part, the word 'directly' appeared neither in Article 1 of Regulation N o 1017/68 nor in Article 1 of Regulation N o 141 — the validity of which expired, in any event, on 30 June 1968 with regard to 15. It held in the first place that the judg transport by rail. Moreover, the wording of ment of the Court of Justice in the VVR case Article 1 of Regulation N o 1017/68 indicated was not relevant to the case under consider that its scope might be wider than suggested by the Commission. In addition, the fact that Article 2 of Regulation N o 1017/68 covered, 8 — Points 47 to 59 of the decision (cited in footnote 4). inter alia, matters which '... indirectly fix ... 9 — OJ, English Special Edition 1959 -1962, p. 291. any other trading conditions' supported that 10 — Cited in footnote 4; point 53. interpretation (paragraphs 43 to 45 of the 11 — Case 311/85 VVR ν Sociale Dienst van de Plaatseldijke en Gewestlijke Overleidsdiensten [1987] ECR 3801. judgment).
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17. The Court of First Instance drew the Article 4 of the Leaflet constituted one of the following conclusion from the foregoing direct costs of the sale of an international arguments in paragraph 46 of its judgment: ticket and determined the net price. That article thus indirectly fixed 'transport rates' or any 'other trading conditions' within the meaning of Regulation N o 1017/68. Article 3.2 of the Leaflet related 'directly' to the price and terms of sale of rail tickets. By its very wording, the requirement imposed by 'Regulation N o 1017/68 cannot, therefore, the model contract to sell tickets at the offi be interpreted as excluding from its applica cial fares had as its object or effect the 'fixing tion a decision of an association of railway of transport rates' within the meaning of companies, such as Leaflet N o 130, laying Regulation N o 1017/68. This would also down detailed rules for the sale of interna be the case if the contract were taken to tional rail tickets. That decision concerns prohibit the discounting of commissions. activities which are related to, and indispens Finally, the Commission itself considered able for, the provision of rail transport ser that the provision contained in Article 4.3 of vices. Moreover, since international rail the model contract 'falls within the transport transport is at present provided by successive sector' (paragraphs 48 to 53 of the judg national services (...), international rail tickets ment). can hardly be sold without a system of coop eration between railways with regard to their sale and the distribution of the proceeds thereof.'
The Court of First Instance stressed that it had not disregarded the Commission's argu 18. In the view of the Court of First ment that Leaflet N o 130 had effects on the Instance, Leaflet N o 130 'furthermore' market for the distribution of tickets. In the related both to the 'supply of transport' and present case, however, the main aspects fell to 'transport rates' within the meaning of within the scope of Regulation N o 1017/68. Regulation N o 1017/68 (paragraph 47 of the The effects to which the Commission judgment). referred were 'at the most secondary to the effects which relate to the transport sector properly so called' (paragraph 54 of the judg ment).
Article 1 of Leaflet N o 130 related 'directly' to the determination of points of sale of international railway tickets. If it were to have the effects alleged by the Commission, it would be limiting or controlling the rail ways' 'markets' and thereby the 'supply of 19. Finally, the Court of First Instance con transport' within the meaning of Regulation sidered that the specific activities of travel N o 1017/68. The commission referred to in agents with which the case was concerned
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were 'services ancillary to transport' within — that Leaflet N o 130 relates both to the the meaning of Regulation N o 1017/68 'supply of transport' and to 'transport (paragraphs 55 to 56 of the judgment). rates' within the meaning of Regulation N o 1017/68, and
20. In view of the differences between Regu lation N o 17 and Regulation N o 1017/68, the application of the wrong legal basis con — that, in distributing tickets on behalf of stituted a breach of an essential procedural railways, travel agents were providing requirement and had deprived the applicant 'services ancillary to transport' within the of the procedural safeguards to which it had meaning of Article 1 of Regulation N o been entitled. 1 2 1017/68.
21. The Court of First Instance therefore declared the Commission decision in issue void, without considering the remaining pleas. 23. The Commission claims that the judg ment of the Court of First Instance should be set aside and the UIC's application dis missed or, in the alternative, that the case be referred back to the Court of First Instance. The Commission also claims that the U I C 22. The Commission has appealed against should be ordered to pay the costs incurred this judgment. It takes the view that the by the Commission in the proceedings Court of First Instance erred in law in three before the Court of First Instance and the respects in deciding Court of Justice.
— that Regulation N o 1017/68 covers agree ments, decisions and concerted practices which concern activities which are 'related to', and 'indispensable for', the provision of rail transport services, 24. The U I C claims that the appeal should be dismissed and the Commission ordered to 12 — Paragraphs 58 to 64 of the judgment. pay the whole of the costs.
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Β — Opinion should be interpreted narrowly. There is no need to enlarge upon the point that those decisions are not binding on the Court of Justice in carrying out its task of interpreting the relevant legislation. It should, however, be noted that actions have been brought against at least one of those decisions in I — Preliminary remark which the question of the proper legal basis is raised. Those actions are at present pend ing before the Court of First Instance. 1 5 This underscores the importance of the present appeal.
25. As I have already mentioned, the Court of First Instance confined itself in the con tested judgment to considering whether the Commission had applied the correct legal basis for its decision. The task of the Court of Justice in the present appeal is accordingly II — The grounds of appeal in detail limited to considering whether the Court of First Instance committed errors of law in so doing. The question raised by the U I C in its response to the appeal and in the rejoinder as to whether the Commission's decision con tained an adequate statement of reasons is therefore irrelevant to the appeal. 1. Field of application of Regulation No 1017/68
26. In their pleadings both the Commission 27. The Commission's first plea concerns and the U I C refer to a series of other Com the finding of the Court of First Instance in mission decisions relating to transport. 1 3 In paragraph 46 of its judgment that Regulation those decisions the Commission took the N o 1017/68 also covers agreements concern- view it is defending in the present proceed ings that the scope of Regulation N o 1017/68 (like each of the other regulations 14 — The statements made in the Eurotunnel Decision (cited in on competition in the transport sector) footnote 13; points 41 to 49) are particularly striking. The doubts expressed by the UIC on that score do not seem to me to be well-founded. Nor, in my view, can it be inferred from Decision 92/213/EEC of 26 February 1992 —British Midland/Aer Lingus (OJ 1992 L 96, p. 34), cited by the 13 — Sec, in particular, Decisión 88/589/EEC of 4 November UIC, that the Commission has put a broad interpretation 1988 —London European/Sabena (OJ 1988 L 317, p. 47), on the scope of the procedural rules relating to competition Decision 91/480/EEC of 30 July 1991 —IATA Passenger in the transport sector. Agency Programme (OJ 1991 L 258, p. 18) and Decision 15 — See Case T-79/95 SNCF v Commission and Case T-80/95 94/894/EEC of 13 December 1994 — Eurotunnel (OJ 1994 British Railways Board v Commission, both of which con- L 354, p. 66). cern the Eurotunnel Decision.
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ing activities which are 'related to, and indis 'furthermore', seem to me clearly to indicate pensable for' the provision of rail transport that this is an additional consideration on services. For its part, the Commission takes which the Court of First Instance is relying. the view that, in principle, the regulation in Consequently, the Commission's plea clearly question covers only agreements which must be considered. directly concern the provision of transport.
28. The U I C argues that it is wrong to assume that in paragraph 46 of its judgment 30. The Commission's view that Regulation the Court of Justice intended to lay down a N o 1017/68 is intended in principle to cover general criterion to the effect that Regulation only agreements which directly concern the N o 1017/68 applied to all activities related provision of transport services as such is to, and indispensable for, the provision of based primarily on the rules laid down by transport services. It argues that the Court of Regulation N o 141. To understand this view First Instance simply used those terms to it is accordingly necessary to call to mind at describe Leaflet N o 130. This was one of the the legislative history of the transport sector. indicia on which the Court of First Instance based its finding that Leaflet N o 130 relates to particular aspects of international rail transport. If that had not been the case, the Court of First Instance would not have needed to consider immediately thereafter whether the Leaflet related to the supply of transport services or to transport rates.
31. Early in 1962 the Council created, in Regulation N o 17, a set of procedural rules for the application of Articles 85 and 86 of the Treaty to the economy as a whole. Regu lation N o 141, adopted shortly afterwards, retroactively limited the scope of Regulation N o 17 in the transport sector. The Commu 29. Those arguments may probably be con nity legislature justified this on the ground strued as meaning that the U I C considers the that, in pursuance of the common transport plea raised by the Commission to be without policy, 'account being taken of the distinctive purpose. I disagree. As the Commission has features of the transport sector,' it might rightly observed, the relationship between prove necessary to lay down rules governing the finding in paragraph 46 of the judgment competition different from those laid down and the observations set out thereafter is not or to be laid down for other sectors. 16 In the entirely clear. The ;1 substance of those observations and, in particular, the fact that, in paragraph 47 of the judgment, they are linked to the preceding passage by the word 16 — See the first recital in the preamble to Regulation N o 141.
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third recital in the preamble thereto the later extended that deadline until 30 June Council qualified this as follows: 1968.
34. O n 19 July 1968 — following the expiry 'The distinctive features of transport make it of that deadline — the Council adopted justifiable to exempt from the application of Regulation N o 1017/68. The Council Regulation 17 only agreements, decisions referred to Regulation N o 141 in the pre and concerted practices directly relating to amble thereto. It went on to state that estab the provision of transport services ...' lishing rules of competition for transport by rail, road and inland waterway is part of the common transport policy and of general economic policy. 1 7 When such rules were being settled account had to be taken of 'the distinctive features of transport.' 18 Since the rules of competition for transport derogated 32. Article 1 of Regulation N o 141 reads as from the general rules of competition, it had follows: to be 'made possible for undertakings to ascertain what rules apply in any particular case'. 19
'Regulation 17 shall not apply to agreements, decisions or concerted practices in the trans The Council went on to state that, with the port sector which have as their object or introduction of a system of competition effect the fixing of transport rates and condi rules for transport, it was desirable that such tions, the limitation or control of the supply rules should apply 'equally' to the joint of transport or the sharing of transport mar financing or acquisition of transport equip kets; nor shall it apply to the abuse of a ment for the joint operation of services by dominant position, within the meaning of certain groupings of undertakings, and also Article 86 of the Treaty, within the transport to certain operations in connection with market.' transport by rail, road or inland waterway of 20 providers of services ancillary to transport. Certain types of technical agreement were also to be exempted from the prohibition of 21 cartels.
33. Article 3 of Regulation N o 141 provides 17 — First and third recitals. 18 — Fourth recital. that Article 1 shall remain in force, as regards 19 — Fifth recital. transport by rail, road and inland waterway, 20 — Sixth recital. only until 31 December 1965. The Council 21 — Eighth recital.
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35. Article 1 of Regulation N o 1017/68, ing or the joint acquisition of transport entitled 'Basic Provision,' reads as follows: equipment or supplies.
37. Under Article 30(1), Regulation N o 'The provisions of this regulation shall, in 1017/68 entered into force — retroactively the field of transport by rail, road and inland — on 1 July 1968. waterway, apply both to all agreements, deci sions and concerted practices which have as their object or effect the fixing of transport rates and conditions, the limitation or con trol of the supply of transport, the sharing of transport markets, the application of techni cal improvements or technical cooperation, or the joint financing or acquisition of trans 38. This shows that the limitation to agree port equipment or supplies where such ments 'directly' relating to the provision of operations are directly related to the provi transport services mentioned in the third sion of transport services and are necessary recital in the preamble to Regulation N o 141 for the joint operation of services by a is not expressly reflected in Article 1 of the grouping within the meaning of Article 4 of Regulation. N o r is there any corresponding road or inland waterway transport undertak limitation in Article 1 of Regulation N o ings, and to the abuse of a dominant position 1017/68 — except in one particular case. It is on the transport market. These provisions also undisputed that Regulation N o 1017/68 shall apply also to operations of providers of replaced Regulation N o 141 in the rail, road services ancillary to transport which have and inland waterway transport sectors with any of the objects or effects listed above.' effect from 1 July 1968. However, what con clusions should be drawn from these facts are in dispute.
36. Article 2 of Regulation N o 1017/68 con tains a prohibition of restrictive practices, the 39. The U I C takes the view that Regulation wording of which largely echoes that of N o 141 constituted a set of transitional rules Article 85(1) of the Treaty. Article 3 provides which were superseded by Regulation N o for a legal exemption from that prohibition 1017/68 and thereafter ceased to have any for the technical agreements mentioned purpose. The same is true, it argues, of the above. Article 4 contains an exemption for third recital in the preamble to Regulation education and the activities of groupings of N o 141. It is thus not possible to rely on undertakings in the field of transport by that recital in interpreting Regulation N o road and inland waterway and their financ 1017/68. This squares with the view taken by
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the Court of First Instance as expressed in 41. In the first place, the Commission quite the contested judgment. rightly points out that there is a close rela tionship between Regulation N o 141 and Regulation N o 1017/68. The latter regulation refers explicitly to Regulation N o 141 in its preamble. It entered into force at the time when Regulation N o 141 ceased to apply to transport by rail, road and inland waterway, and followed on directly from it. Leaving aside the inclusion of technical agreements, The U I C further argues that the field of agreements on joint financing or joint acqui application of Regulation N o 1017/68 is sition of transport equipment or supplies and wider than that of Regulation N o 141. The the rules concerning the operations of pro regulation now in force also covers agree viders of services ancillary to transport con ments not directly related to transport. It tained in the second sentence, the scope of was entirely within the Council's power to Article 1 of Regulation N o 1017/68 is other give Regulation N o 1017/68 a wider field of wise largely identical with that of Article 1 of application than Regulation N o 141. More Regulation N o 141. over, Regulation N o 1017/68 was prefaced by extensive recitals. If the Council really had intended to restrict the field of applica tion of the regulation in the way the Com mission argues it did, it would have explained this in Article 1 itself or at least in the preamble. O n that point, it should be noted that, when it adopted Regulation N o 42. To my mind there can be no doubt that 1017/68, the Council was aware — as is clear Article 1 of Regulation N o 141 should be from the recitals — of the need to preserve interpreted restrictively. That much is clear legal certainty. simply from the fact that Regulation N o 141 excluded the transport sector from the appli cation of Regulation N o 17. Since Regulation N o 17 is the general regulation for the implementation of Articles 85 and 86 of the Treaty, Regulation N o 141 — just like Regu lation N o 1017/68 — should be treated as a derogating provision and should be inter preted no more broadly than its purpose 40. There is much to be said for this argu requires. ment. In particular, it is significantly easier to reconcile with the wording of Article 1 of Regulation N o 1017/68 than the view taken by the Commission. Nevertheless, I have come to the view that the interpretation advocated by the Commission should be preferred. However, that purpose was to reconcile the performance of the task set by the Treaty in Article 3(g) of instituting a 'system ensuring 22 — Cited in footnote 3; at paragraph 43. that competition in the internal market is not
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distorted' with the introduction of a com Articles 2 and 3, for the attainment of which mon policy in the sphere of transport the fundamental provisions applicable to the required by Article 3(f). Thus, the adoption whole complex of economic activity are of of Regulation N o 141 represented not only a prime importance. Far from involving a measure pursuant to Article 87 of the departure from these fundamental rules, 24 Treaty — to which the first recital in the therefore, the object of the rules relating to preamble to that regulation expressly refers the common transport policy is to imple — but also a measure coming under the ment and complement them by means of common transport policy. 2 5 common action. Consequently the said gen eral rules must be applied in so far as they can achieve these objectives.'
43. Article 74, which opens Title IV of Part Two of the E C Treaty concerning transport, provides as follows:
'The objectives of this Treaty shall, in mat ters governed by this Title, be pursued by Member States within the framework of a common transport policy.' 44. That decision of the Court of Justice was concerned with whether the general provi sions of the Treaty were also applicable to sea transport, even though, according to Article 84(1), Title IV only applied to rail, road and inland waterway transport. How In its judgment in Commission ν France 26 ever, the Court's finding can be generalized. the Court of Justice held in this connection: It is undisputed that the provisions of Title IV apply to the rail transport sector (and to road and inland waterway transport). If the general provisions of the Treaty are appli cable in a sector which Title IV does not 'When Article 74 refers to the objectives of cover, then they must be applicable in a sec the Treaty, it means the provisions of tor such as rail transport which does come under the provisions of that Title. Accord ingly, the general provisions of the Treaty — and thus Articles 85 and 86, too — must be 23 — That provision corresponds to the original Article 3(f) of the EEC Treaty which refers to competition 'in the com applied in the rail transport sector in so far mon market' although no difference of ;1 substance is involved. as the objectives of the Treaty can be 24 — That article empowers the Council to adopt the regulations achieved on that basis. The same is true of or directives required 'to give effect to the principles set out in Articles 85 and 86.' the general provisions adopted in order to 25 — Regulation N o 1017/68 expressly emphasizes this in the implement those provisions. The adoption of third recital in the preamble thereto (cited above). special rules on competition, for example, is 26 — Case 167/73 Commission ν France [1974] ECR 359, para graphs 24, 25 and 26. called for only in so far as it is necessary 'to
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implement and complement (those general that regulation, is concerned, in principle it provisions) by means of common action'. covers only agreements which directly con Specific legislation on competition in the cern the provision of transport services. transport sector is thus only necessary when the 'special aspects of this branch of activ 27 ity' require it. Where this is not the case, the general rules apply.
47. As I have already mentioned, the recitals 45. The Council was aware of these relation in the preamble to Regulation N o 1017/68 ships when it adopted Regulation N o 141. refer to Regulation N o 141. Moreover, The distinctive features of the transport sec Regulation N o 1017/68 entered into force tor are referred to in the very first recital. In when Regulation N o 141 ceased to be force the third recital the inference is drawn there as regards the sector in issue. Apart from from that the 'distinctive features of trans that, the abovementioned parallels in the port' make it justifiable to exempt from the wording above all suggest that the agree application of Regulation N o 17 only agree ments mentioned both in Article 1 of Regu ments, decisions and concerted practices lation N o 1017/68 and in Article 1 of Regu directly relating to the provision of transport lation N o 141 should be interpreted in the services. The fact that this restriction is not same way. expressly stated in Article 1 of Regulation N o 141 is, in my view, irrelevant. The Coun cil had clearly stated in the preamble to the regulation that the exemption from the application of Regulation N o 17 laid down by Article 1 should be limited to agreements which had a direct connection with the pro vision of transport services. There could thus be no doubt that Article 1 was to be inter preted in that way and hence restrictively. 48. However, both the U I C and the judg ment of the Court of First Instance point out that certain agreements included in Article 1 of Regulation N o 1017/68 do not appear in Regulation N o 141. They draw the conclu sion that the regulation at present in force is broader in scope than Regulation N o 141. 46. These considerations are not of historical This is obvious and is not disputed by the interest only, Regulation N o 141 was indeed Commission. The crucial question, however, superseded by Regulation N o 1017/68 in the is whether, as a result, a broader interpreta rail, road and inland waterway transport sec tion should be given to the other agreements tors. However, as far as the interpretation of which were already covered by Regulation N o 141 and the requirement for a direct link with the provision of transport services should be disregarded. In my view that ques 27 — The words used by the Court in Commisńon ν France (cited in footnote 26; at paragraph 27). tion should be answered in the negative.
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49. The Commission has pointed out that includes only those operations of providers the technical agreements and agreements on of services ancillary to transport 'which have the financing or acquisition of transport any of the objects or effects listed above'. equipment or supplies mentioned in the first Thus the second sentence contributes noth sentence of Article 1 of Regulation N o ing to the interpretation of the agreements 1017/68 were included in the regulation for under discussion listed in the first sentence specific purposes. It should, indeed, be noted of the article. that Articles 3 and 4 of the regulation makes provision for exemptions from the prohibi tion of cartels for agreements of this nature. If regard is had to the reasons given by the Council to justify this provision, 28 the Commission's view that the Council did not include such agreements in the regulation in order to widen its sphere of application on generally, but to ensure the legitimacy of such agreements, definitely appears plausible. 50. In that connection I would point out that, contrary to the view taken by the Court of First Instance, no inference as to the extent of the field of application of the regu lation can be drawn from Article 2 of Regu lation N o 1017/68. Article 2 is concerned only with the prohibition of cartels. In con trast, the field of application of the regu lation, is determined exclusively by Article 1. Moreover, the Commission has cogently argued that the inclusion of Article 2, whose N o r does the inclusion in the second sen wording echoes Article 85 of the Treaty, can tence of Article 1 of Regulation N o 1017/68 be attributed to the fact that, at the time of certain operations of providers of services when the regulation was adopted, it was still ancillary to transport conflict with that view. not beyond doubt whether Article 85 of the Admittedly, I do not agree with the Com Treaty was directly applicable to the trans mission when it claims that Regulation port sector. N o r has the U I C , in its submis N o 141 already covered such operations. O n sions in the present proceedings, expressly the one hand, the Commission was unable to espoused the argument of the Court of First provide evidence in support of its assertion Instance based on Article 2 of the regulation. that this was clear from the Council's think ing at the time. O n the other, the wording of the sixth recital in the preamble to Regu lation N o 1017/68 clearly does not support this view, stating, as it does, that it was 'desirable' that the regulation should 'apply' to such operations. However, the deciding factor, to my mind, is the fact that the second sentence of Article 1 of the regulation 51. The Commission also argues that the interpretation put forward by the Court of 28 — See particularly the sixth, eighth and ninth recitals. First Instance would mean that Article 1 of
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Regulation N o 1017/68 had a broader field 'equally,' the question arises as to whether of application than Regulation N o 141 so far the Council is not implicitly referring to the as agreements already affected by the latter third recital in the preamble to Regulation regulation were concerned. This would nec N o 141. This would explain why the passage essarily mean that the field of application of in issue in Article 1 of Regulation N o Regulation N o 17 became commensurating 1017/68 requires there to be a 'direct' rela narrower when Regulation N o 1017/68 tionship with the provision of transport ser entered into force. The Commission points vices. out, not without justification, that the Coun cil could have been expected to give reasons for this in the preamble to the regulation. However, no such arguments appear in the preamble. Consequently, it is not apparent that the Council intended that the identically-worded part of Regulation N o 1017/68 should have its field of applica In any event, it should be pointed out that tion enlarged in this way by comparison the Commission itself has expressed the view with Regulation N o 141. that the agreements in issue do not directly concern the provision of transport services. This appears to be the reason why it did not go more closely into the use of the word 'directly' in the passage in question.
52. Admittedly, it must be conceded that the wording of Regulation N o 1017/68 consid ered in isolation tends to support the inter pretation favoured by the U I C and the Court of First Instance. However, in my 53. Convincing support for the view taken view, even in that wording there is some sup here is to be found — as the Commission port — admittedly not compelling — for the has rightly pointed out — in the procedural Commission's view. The assertion of the regulations on the application of rules on Court of First Instance in paragraph 43 of its competition in the field of air transport. judgment that the word 'directly' does not Article 1 of Regulation N o 141 excluded the appear in Article 1 of Regulation N o application of Regulation N o 17 in this sec 1017/68 is incorrect. The joint financing or tor, too. The resulting gap was not filled acquisition of transport equipment or sup until the adoption of Council Regulation plies are covered by Article 1 only if they are (EEC) N o 3957/87 of 14 December 1987 'directly related to the provision of transport laying down the procedure for the applica services.' That criterion is not mentioned in tion of the rules on competition to undertak the sixth recital in the preamble to the regu ings in the air transport sector. 2 9 According lation, in which the Council gives reasons for to Article 1 of the regulation it 'lays down the inclusion of such operations. However, it detailed rules for the application of Articles is stated there that the rules should 'apply 85 and 86 of the Treaty to air transport equally' to such operations. As there is no indication in the remaining recitals of Regu lation N o 1017/68 as to what is meant by 29 — OJ 1987 L 374, p. 1.
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services'. The scope delineated thereby is not view expressed by the Council in the third defined in any more detail elsewhere in the recital in the preamble to Regulation N o 141. Regulation. However, if, in a regulation adopted in 1987 in the air transport sector, the Council expresses the same view as it expressed in Regulation N o 141 adopted in 1962, this can only mean that the position adopted in the latter regulation remains unchanged. It does not appear that the Council has changed its O n the same day as Regulation N o 3975/87, view in the intervening years. Both Regu the Council adopted Regulation (EEC) N o lation N o 1017/68 and Regulation N o 3976/87 on the application of Article 85(3) of 3975/87 concern the transport sector. Both the Treaty to certain categories of agreements replaced Regulation N o 141 in the area of and concerted practices in the air transport transport which they regulate. In my view, sector. 3 0 The first recital in the preamble to all this points to the inescapable conclusion that regulation reads as follows: that it must be assumed that Regulation N o 1017/68, which was adopted in 1968, like wise covers only agreements directly relating to the provision of transport services, in so far as the legislature has not provided for exemptions (as in the case of the technical 'Council Regulation N o 3975/87 lays down agreements mentioned in Article 1 of Regu the procedure for the application of the rules lation N o 1017/68). The fact that the regula on competition to undertakings in the air tions in the air transport sector referred to transport sector. Regulation N o 17 of the were adopted nearly 20 years after the regu Council lays down the procedure for the lation at issue in this case is, contrary to the application of these rules to agreements, view taken by the U I C , of no relevance. The decisions and concerted practices other than deciding factor is not the rules on the air those directly relating to the provision of air transport sector as such but the continuity of transport services.' the underlying view which may be inferred from those rules.
54. This recital shows quite clearly that, in the air transport sector at least, the Council shares the view taken by the Commission in these proceedings that the special rules on competition should cover only agreements which relate directly to transport services as such, whereas all other agreements are to be assessed against the general rules of Regu lation N o 17. This is consonant with the 55. The abovementioned rules on the air transport sector also show quite clearly that the arguments of the U I C based on the 30 — OJ 1987 L 374, p. 9. ostensibly clear wording of Regulation
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N o 1017/68 are unsuccessful. Regulation N o the third recital in its preamble shows. The 3975/87 does not contain any express limita special procedural rules relating to transport tion of its scope to agreements directly relat are thus only applicable where the distinctive ing to the provision of transport services features of transport so require. Accordingly, either, although this was the intention of the in case of doubt Regulation N o 17 is appli Council — as is clear from the first recital in cable. I would further point out that Regu the preamble to Regulation N o 3976/87. lation N o 1017/68 by no means contains a comprehensive set of rules for the rail, road and inland waterway transport sectors. Rather, it covers only certain agreements expressly mentioned in Article 1 of the regu lation. That fact alone raises the question as to how the field of application of Regulation N o 1017/68 is to be demarcated from that of the general regulation, Regulation N o 17. There is a need for a criterion which can be used to effect that demarcation. The criterion 56. The UIC's objections to this view based suggested by the Commission does reflect — on the need to safeguard legal certainty are as I have shown — the intention of the leg not convincing. Admittedly, if the intention islature and is in line with the substantive was to make it possible for undertakings 'to limitation of the scope of these special rules ascertain what rules apply in any particular which is laid down by the Treaty. The crite case,' 3 1 it would have been an obvious step rion applied by the Court of First Instance, for the legislature to have made it clear that according to which the regulation also the field of application of Regulation N o applies to activities which 'are related to, and 1017/68 was to be interpreted narrowly. But indispensable for, the provision of rail trans the legislature was under no obligation to port services,' on the other hand, raises more make that clear. questions than it answers, as the Commis sion has rightly objected.
In the first place, the limited field of applica tion of Regulation N o 1017/68 is clear from the very fact that the legislature was empow ered only to enact such rules in so far as they were required by the distinctive features of transport. The Council had this limitation in 57. I am, therefore, of the opinion that the mind when it adopted Regulation N o 141, as Court of First Instance interpreted the field of application of Regulation N o 1017/68 incorrectly and thereby erred in law. That error of law would, however, be of no con 31 — See the fifth recital in the preamble to Regulation N o 1017/68. sequence if the view of the Court of First
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Instance that Leaflet N o 130 fell in any event does not limit the supply of transport but within the scope of the regulation were cor the supply of intermediate services for the rect. marketing of transport services.
60. I can only agree with the view expressed 2. Applicability ofRegulation No 1017/68 to by the Commission. Article 1 of the Leaflet Leaflet No 130 governs the accreditation of travel agents for the sale of tickets. It therefore — as the Court of First Instance rightly recognized — relates to the determination of points of sale. However, the article does not directly con cern transport services as such. It is not a matter of reducing the number or capacity of trains travelling on a particular route or of (a) 'Supply of transport' limiting or controlling the supply of transport in some other way. Rather, the article in issue concerns the question of who should sell tickets. This has nothing directly to do with transport and the distinctive features of transport. Competition for the sale of tickets is limited, not competition on the market for the supply of transport. 58. The Court of First Instance expressed the view that Article 1 of Leaflet N o 130 could have as its object or effect the limita tion or control of the 'supply of transport'. Its reason for this view was that the article in question related 'directly to the determina tion of points of sale of international railway 61. I am unconvinced by the UIC's argu 32 tickets'. ment that the underlying distinction made here between the market for transport ser vices as such, which are provided by the rail ways to passengers, and the market for the supply of intermediate services relating to the sale of tickets, which the travel agents provide to the railways, cannot be derived from Article 1 of Regulation N o 1017/68. As 59. The Commission argues that Article 1 of the Commission has quite rightly pointed Leaflet N o 130 does not relate to transport out, the answer to the question whether a services but to their marketing. The article particular case involves the 'supply of trans port services' in practice logically presup poses that the relevant market has first been 32 — Cited in footnote 3; at paragraph 48. determined.
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62. It is true, admittedly, that the provisions control the supply of transport within the on the accreditation of travel agents can meaning of Article 1 of Regulation N o themselves have certain indirect effects on 1017/68. the supply of transport services. For example, it is conceivable that a restriction of the number of points of sale might lead to a drop in demand for tickets, which might prompt railway companies to reduce the supply of transport. At the same time, how ever, this example shows that such indirect effects are in fact rather unlikely. Moreover, (b) 'Fixing transport rates and conditions' the Commission rightly points out that the railway companies can have no interest at all in such effects.
65. In its judgment the Court of First Instance took the view that the provisions contained in Articles 3 and 4 of Leaflet N o 130 governing the commission to be granted 63. In paragraph 54 of its judgment the to travel agents constituted agreements fixing Court of First Instance expressed the view 'transport rates' or 'transport conditions.' that the effects of Leaflet N o 130 on compe According to its very wording, the obliga tition on the market for the distribution of tion contained in Article 4.7 of the model railway tickets would be 'at the most second contract had as its object or effect the 'fixing ary' to the effects which relate to the trans of transport rates'. port sector properly so called. The U I C argues that this is a finding of fact which cannot be contested on appeal. This is incor rect. Properly, what is involved is the ques tion whether or not an agreement falls within the field of application of Regulation N o 1017/68. This is, therefore, a question of law which is certainly subject to review on 66. In its appeal the Commission first appeal. expressed the view that the price paid by a customer for his ticket was made up of two components, first, the transport rate proper and, secondly, the commission for the travel agent. As Leaflet N o 130 only contained provisions relating to commission, this did not amount to the 'fixing of transport rates'. In its reply the Commission retreated from this rather artificial distinction which was 64. The provisions of Article 1 of the Leaflet rightly criticized by the UIC. It also now thus do not relate directly to the provision of concedes that the transport rate is the fare transport services and cannot therefore be payable by the passenger. The commission is considered to be agreements which limit or one component of that fare.
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67. Accordingly, provisions concerning the transport is concerned, the distinctive fea rate of commission to be paid can have an tures of the sector — such as the fact that, as effect on the transport rate. However, the matters stand at present, railways must nec Commission rightly argues that this would essarily cooperate in the field of international be an indirect effect. It should be borne in passenger transport — must be taken into mind that the transport rate as such is fixed account. O n the other hand, where the dis by each railway independently. Each railway tribution of tickets is concerned, there are no determines whether, for example, E C U 25, such distinctive features to justify the appli 50 or 100 should be paid for a journey from cation of Regulation N o 1017/68 in the first A to B. To construe an agreement by which place. The agreements under consideration the railways fix the price they pay for a par here concerning the distribution of tickets ticular service as the 'fixing of transport are thus covered by the general provisions of rates' within the meaning of Article 1 of Regulation N o 17. Regulation N o 1017/68 simply because the cost of that service is one component of the transport rate would constitute an unwar ranted extension of the field of application of the regulation. The Commission argues in its reply that the price the railways have to pay for their rolling stock (engines and carriages) also affects the transport rate. If one took the 69. At first sight, a different assessment argument of the Court of First Instance and seems to be called for as far as the provisions of Article 4.7 of the model contract are con the U I C to its logical conclusion, Regulation cerned. In the Commission's estimation, that N o 1017/68 would thus, for example, be article obliges travel agents to sell tickets at applicable to an agreement between the rail the prices fixed by the railways. The obvious ways on the prices that they are prepared to conclusion is that this constitutes the 'fixing pay their suppliers. In its rejoinder the U I C of transport rates' since the price the passen went so far as to endorse this view explicitly. ger ultimately has to pay is being deter However, it is clear that such agreements mined. relate to the market in the product in ques tion (for example, railway engines), and not to the transport market as such. They are not agreements which fix transport rates directly. The same is true of agreements concerning the commission to be paid to travel agents.
70. However, it should be borne in mind that it is the railway companies concerned which fix the rate for the transport they pro vide. The Court of First Instance acknowl edges in its judgment that the relevant article of the model contract does not concern the fixing of the official fares themselves. 3 3 If the article actually prevented travel agents from 68. As the Commission has rightly acknowl passing their commission on to passengers or edged, the provisions of Articles 3 and 4 of Leaflet N o 130 do not relate to the market in transport as such but to the market for the distribution of tickets. As far as the supply of 33 — Cited in footnote 3; at paragraph 50.
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sharing it with them, that would, in the view to which Regulation N o 1017/68 does not of the Court of First Instance, constitute the apply. The Commission rightly asks whether, fixing of transport rates 'in so far as the rail for that reason alone, it should apply all ways would thus be preventing any compe three sets of special procedural rules valid for tition on transport rates between accredited those sectors to the article in issue. 34 agents.' Consequently, the Court of First Instance also recognizes that the article in issue relates to competition between travel agents and thus to the distribution sector but not to transport as such. For that reason too, in my view, this is not a case of the 'fixing of transport rates' within the meaning of Article 1 of Regulation N o 1017/68.
72. A sensible solution can only be found by bearing in mind that the provisions of Leaf let N o 130 do not direcdy concern the mar ket for transport but the market for the dis tribution of transport. Their major impact is on that market. The impact on the transport market itself is, in contrast, of a secondary order. Therefore, Regulation N o 17, and not Regulation N o 1017/68, should be applied to these provisions.
71. Support for this view is to be found in the observations of the Court of First Instance on Article 4.3 of the model contract. That article prohibits travel agents from favouring in their operations means of trans port competing with the railways. O n this point, the Court of First Instance refers to the Commission's statement in its decision to the effect that that provision has the (c) 'Services ancillary to transport' object and effect 'of restricting competition between the various means of transport'. 35It draws the conclusion that this provision 'falls within the transport sector'. At the same time, it appears to take the view that Regulation N o 1017/68 should therefore be applicable to the article. As the Commission righdy argues, that conclusion is dubious. The agreement could certainly affect the air transport sector or the sea transport sector, 73. Finally, there remains the view of the Court of First Instance that the activities of travel agents in distributing tickets should be viewed as 'services ancillary to transport' 34 — Cited in footnote 3; at paragraph 51. within the meaning of the second sentence of 35 — Paragraph 52 of the judgment (cited above in footnote 3); Paragraph 95 of the decision (cited in footnote 4). Article 1 of Regulation N o 1017/68.
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74. The expression 'services ancillary to limited scope: transport commission agents, transport' is not defined in the regulation. In bulking or handling undertakings, and so its decision the Commission referred to the on'. 3 8 Council Directive of 29 June 1982 on mea sures to facilitate the effective exercise of freedom of establishment and freedom to provide services in respect of activities of self-employed persons in certain services incidental to transport and travel agencies (ISIC Group 718) and in storage and ware housing (ISIC Group 720). 3 6 According to 76. I, too, am inclined to take the view that Article 3 of that directive, the expression the expression 'services ancillary to trans 'persons in certain services incidental to port' has a particular, narrow meaning. transport' covers the activities of a 'commis Everything suggests that it only has any sionaire de transport' (in Belgium, France meaning in the freight sector. One cannot and Luxembourg), a 'Spediteur' (in Ger object — as the U I C does — that this would many) and a 'freight forwarder' (in the curtail the field of application of Regulation United Kingdom). Travel agents, on the N o 1017/68. As the Commission rightly other hand, are listed in this nomenclature argues, the expressions used in the regulation under 'travel agencies.' This terminology, are to be interpreted according to their actual however, is not binding in the case of Regu meaning and not with a view to treating pas lation N o 1017/68, which has entirely differ senger transport and freight transport as far ent aims from those of the directive. as possible in the same way. I do not think it is correct, however, to make matters depend simply on the fact that a person is carrying out an auxiliary activity in the transport sec tor, as the Court of First Instance appears to have done.
75. The Commission also referred to the 77. In the final analysis, however, this ques Opinion of Advocate General Dutheillet de tion can be allowed to lie. As both the U I C Lamothe in Ministère Public Luxembourg ν and the Commission acknowledge, the appli Muller. 3 7 In that Opinion, the Advocate cability of Regulation N o 1017/68 depends General stated, with regard to Regulation not so much on whether the individuals con N o 1017/68, in 'that the very specialized cerned are performing 'services ancillary to vocabulary of the law relating to transport, transport,' as on whether their activities have the expression "providers of services ancil the object or effects referred to in the first lary to transport" generally has a relatively sentence of Article 1 of the regulation. They must therefore, in the light of my conclu
36 — OJ 1982 L 213, p. 1. 37 — Opinion in Case 10/71 Ministere Public Luxembourg v Muller ECR [1971] 723, at 731. 38 — Cited in footnote 37; at 736.
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sions above, be activities which directly con stage of the proceedings, however, it is not cern the supply of transport services. This is possible to dismiss the UIC's action against clearly not the case here. Travel agents do the Commission decision, in line with the not supply transport services. Their activities Commission's claim. As I have already men are confined to the distribution of tickets. tioned, the U I C relied on several pleas in the The agreements in issue here, which affect proceedings before the Court of First competition on that market, should, there Instance, of which that Court has only con fore, be assessed not by the yardstick of sidered one. The case must therefore be Regulation N o 1017/68 but in the light of referred back to the Court of First Instance the general procedural regulation, Regulation pursuant to the first paragraph of Article 54 N o 17. of the Statute of the Court of Justice of the EEC.
III — Summary 79. Under Article 122 of the Rules of Pro cedure the Court of Justice is to make an order as to costs 'where the appeal is unfounded or where the appeal is well 78. For all the above reasons I take the view founded and the Court itself gives final judg that the judgment of the Court of First ment in the case'. As this is not the case here, Instance is vitiated by errors of law and the decision as to costs should be reserved to should therefore be set aside. At the present the Court of First Instance.
C — Conclusion
80. I therefore p r o p o s e that the j u d g m e n t of the C o u r t of First Instance of 6 J u n e 1995 in Case T-14/93 Union Internationale des Chemins de Fer ν Commission s h o u l d be set aside, the case referred back t o the C o u r t of First Instance and the costs reserved.
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