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Súdny dvor Európskej únie·25.10.2001

C-251/99

ECLI:EU:C:2001:571

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Súdny dvor Európskej únie
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61999CC0251

LIMBURGSE VINYL MAATSCHAPPIJ AND OTHERS v COMMISSION

OPINION OF ADVOCATE GENERAL MISCHO delivered on 25 October 2001 1

I — Introduction objections as provided for in Article 2(1) of Commission Regulation No 99/63/EEC of 25 July 1963 on the hearings provided for in Article 19(1) and (2) of Council Regu- lation No 17. 3All the undertakings con- cerned submitted observations in June 1988. Except for Shell International A — Background to the dispute Chemical Company Ltd, which had not requested a hearing, they were heard in September 1988.

1. Following investigations conducted in the polypropylene sector on 13 and 14 Oc- tober 1983 pursuant to Article 14 of Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the Treaty, 2 the 3. On 1 December 1988 the Advisory Commission of the European Communities Committee on Restrictive Practices and commenced an inquiry on polyvinyl- Dominant Positions (hereinafter 'the Advis- chloride (hereinafter 'PVC'). It sub- ory Committee') delivered an opinion on sequently undertook various investigations the Commission's draft decision. at the premises of the undertakings con- cerned and sent them requests for infor- mation.

4. At the end of the proceeding the Com- mission adopted Decision 89/190/EEC of 2. On 24 March 1988 it instituted on its 21 December 1988 relating to a proceeding own initiative a proceeding under pursuant to Article 85 of the EEC Treaty Article 3(1) of Regulation No 17 against (IV/31.865, PVC),4 (hereinafter 'the PVC I 14 PVC producers. On 5 April 1988 it sent decision'). By that decision, the Commis- each of those undertakings a statement of sion penalised the following PVC producers

1 — Original language: French. 3 — OJ, English Special Edition 1963-1964, p. 47. 2 — OJ, English Special Edition 1959-1962, p. 87. 4 —OJ 1989 L 74, p. 1.

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for infringement of Article 85(1) of the EC 9. On appeal by the Commission, the Treaty (now Article 81(1) EC): Atochem Court of Justice, by judgment of 15 June SA, BASF AG, DSM NV, Enichem SpA, 1994 in Commission v BASF and Others, 7 Hoechst AG (hereinafter 'Hoechst'), Hüls set aside the judgment of the Court of First AG, Imperial Chemical Industries pic (here- Instance and annulled the PVC I decision. inafter 'ICI'), Limburgse Vinyl Maatschap- pij NV, Montedison SpA, Norsk Hydro AS, Société Artésienne de Vinyle SA, Shell International Chemical Company Ltd, Sol- vay et Cie (hereinafter 'Solvay') and Wacker-Chemie GmbH. 10. The Commission thereupon adopted a fresh decision, on 27 July 1994, in relation to the producers who had been the subject of the PVC I decision, with the exception, however, of Solvay and Norsk Hydro AS [Commission Decision 94/599/EC of 5. All those undertakings except Solvay 27 July 1994 relating to a proceeding brought actions to have that decision pursuant to Article 85 of the EC Treaty annulled by the Community judicature. (IV/31.865 — PVC) (OJ 1994 L 239, p. 14, hereinafter 'the PVC II decision'). That decision imposed on the undertakings to which it was addressed fines of the same amounts as those imposed by the PVC I decision. 6. The Court of First Instance declared Norsk Hydro's application inadmissible by order of 19 June 1990. 5

11. The PVC II decision contains the fol- lowing provisions: 7. The other cases were joined for the purposes of the oral procedure and the judgment.

''Article 1 8. By judgment of 27 February 1992 in BASF and Others v Commission, 6 the Court of First Instance declared the PVC I decision non-existent. BASF AG, DSM NV, Elf Atochem SA, Enichem SpA, Hoechst AG, Hüls AG, Imperial Chemical Industries plc, Lim- 5 — Case T-106/89 (not published in the European Court burgse Vinyl Maatschappij NV, Mon- Reports). 6 — Joined Cases T-79/89, T-84/89, T-85/89, T-86/89, T-89/89, T-91/89, T-92/89, T-94/89, T-96/89, T-98/89, T-102/89 and T-104/89 BASF and Others v Commission [1992] ECR 7 — Case C-137/92 P Commission v BASF and Others [1992] II-315. ECR I-2555.

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tedison SpA, Société Artésienne de Vinyle or to any concerted practice covering price SA, Shell International Chemical [Com- or market-sharing inside the Community. pany] Ltd and Wacker-Chemie GmbH Any scheme for the exchange of general infringed Article 85 of the EC Treaty information to which the producers sub- (together with Norsk Hydro... and Sol- scribe concerning the PVC sector shall be vay...) by participating for the periods so conducted as to exclude any information identified in this Decision in an agreement from which the behaviour of individual and/or concerted practice originating in producers can be identified, and in par- about August 1980 by which the producers ticular the undertakings shall refrain from supplying PVC in the Community took part exchanging between themselves any addi- in regular meetings in order to fix target tional information of competitive signifi- prices and target quotas, plan concerted cance not covered by such a system. initiatives to raise price levels and monitor the operation of the said collusive arrange- ments.

Article 3

Article 2 The following fines are hereby imposed on the undertakings named herein in respect of the infringement found in Article 1:

The undertakings named in Article 1 which are still involved in the PVC sector in the Community (apart from Norsk Hydro and Solvay which are already the subject of a valid termination order) shall forthwith (i) BASF AG: a fine of ECU 1 500 000; bring the said infringement to an end (if they have not already done so) and shall henceforth refrain in relation to their PVC operations from any agreement or con- certed practice which may have the same or similar object or effect, including any (ii) DSM NV: a fine of ECU 600 000; exchange of information of the kind normally covered by business secrecy by which the participants are directly or indi- rectly informed of the output, deliveries, stock levels, selling prices, costs or invest- ment plans of other individual producers, or by which they might be able to monitor (iii) Elf Atochem SA: a fine of ECU adherence to any express or tacit agreement 3 200 000;

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(iv) Enichem SpA: a fine of ECU (xi) Shell International Chemical Company 2 500 000; Ltd: a fine of ECU 850 000;

(v) Hoechst AG: a fine of ECU 1 500 000; (xii) Wacker-Chemie GmbH: a fine of ECU 1 500 000.'

(vi) Hüls AG: a fine of ECU 2 200 000;

B — Procedure before the Court of First Instance

(vii) Imperial Chemical Industries pic: a fine of ECU 2 500 000;

12. By various applications lodged at the Registry of the Court of First Instance between 5 and 14 October 1994, Lim- burgse Vinyl Maatschappij NV, Elf Ato- chem SA (hereinafter 'Elf Atochem'), BASF (viii) Limburgse Vinyl Maatschappij NV: a AG, Shell International Chemical Company fine of ECU 750 000; Ltd, DSM NV and DSM Kunststoffen BV, Wacker-Chemie GmbH, Hoechst, Société Artésienne de Vinyle SA, Montedison SpA, ICI, Hüls AG and Enichem Spa brought actions before the Court of First Instance.

(ix) Montedison SpA: a fine of ECU 1 750 000;

13. Each sought the annulment of the PVC II decision in whole or in part and, in the alternative, the annulment or reduction of the fine. Montedison Spa also pleaded that (x) Société Artésienne de Vinyle SA: a fine the Commission should be ordered to pay of ECU 400 000; damages on account of costs incurred in

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putting together a guarantee and any other — ruled on the costs. expenses arising from the PVC II decision.

C — The judgment of the Court of First Instance D — Procedure before the Court of Justice

14. By judgment of 20 April 1999 in Lim- burgse Vinyl Maatschappij and Others v 15. By application lodged at the Court Commission8 (hereinafter 'the contested Registry on 6 July 1999, Enichem SpA judgment'), the Court of First Instance: (hereinafter 'Enichem') appealed pursuant to Article 49 of the EC Statute of the Court of Justice.

— joined the cases for the purposes of the judgment;

16. It claims that the Court should:

— annulled Article 1 of the PVC II decision in so far as it found that Société Artésienne de Vinyle SA had participated in the infringement com- — set aside the contested judgment in plained of after the first half of 1981; those parts contested by Enichem and, accordingly, annul the PVC II decision;

— reduced the fines imposed on Elf Ato- chem, Société Artésienne de Vinyle SA and ICI to EUR 2 600 0 0 0 , — in the alternative, set aside the con- EUR 135 000 and EUR 1 550 000 tested judgment in those parts which respectively; adversely affect Enichem and, accord- ingly, annul or reduce the fine imposed;

— dismissed the remainder of the action;

8—Joined Cases T-305/94, T-306/94, T-307/94, T-313/94, — order the Commission to pay the costs T-314/94, T-315/94, T-316/94, T-318/94, T-325/94, T-328/94, T-329/94 and T-335/94 Limburgse Vinyl Maats- of the proceedings at first instance and chappij and Others v Commission [1999) ECR II-931. on appeal.

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17. The Commission contends that the of applicants at the hearing before the Court should: Court of First Instance on 13 and 14 June 1995, and held that that general reference to documents, even if annexed to the reply, could not replace a statement of facts, pleas and arguments in the text of the reply itself. — dismiss the appeal;

— order the appellant to pay the costs of 20. The Court concluded that, to the extent the proceedings at first instance and on that it referred to the joint submissions, appeal. Enichem's reply did not satisfy the require- ments of Article 44(1 )(c) of the Rules of Procedure and could not therefore be con- sidered.

I I — Assessment

21. Under that provision, the application 18. In support of its appeal, Enichem puts must contain 'the subject-matter of the forward 13 pleas, which should be con- proceedings and a summary of the pleas sidered in the order in which they appear in in law on which the application is based'. the application.

22. Enichem states that the Court of First A — Infringement of Article 44(l)(c) of the Instance misapplied the provision since: Rules of Procedure of the Court of First Instance

19. The appellant complains that, in para- graph 41 of its judgment, the Court of First — the procedural complaints formulated Instance stated that, in its reply, Enichem in the joint submissions were already made a general reference to the pleas and included in the application and were arguments put forward jointly by a number only clarified in the reply;

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— the arguments put forward at the ward on that occasion are deemed to be hearing formed part of the procedure known to the Court and the parties are not and were known to the Court, since required to repeat them in their replies. they had been put forward before it;

25. The fact that a party annexes the text — the objections raised by the parties, and of counsel's notes of pleadings to his reply particularly Enichem, to the arguments may therefore be considered, at most, put forward by the Commission in its superfluous. defence were already contained in those submissions;

26. That said, the Court of First Instance is — the reference, in the reply, to the texts not required to refer to those notes of of the joint arguments inevitably meant pleadings — which may possibly not cor- that the appellant adopted the whole of respond entirely to what is said — but their content as its own and did not may simply refer to the arguments put therefore require the Court to seek and forward at the hearing. ascertain, in the annexes, which pleas formed the basis of the application and the reply.

27. Therefore, if the Court refused to take the written pleadings into consideration in so far as they contained arguments pres- 23. In that regard, it must be stated that the ented at the time of the joint pleadings, on fact that a party refers, in its reply, to the the sole ground that the arguments had arguments put forward in joint submissions been reiterated, in those written pleadings, made during an oral procedure ordered by only in the form of a simple reference to the the Court of First Instance in the same notes of pleadings annexed to the reply, it cases, joined for that purpose, cannot be would err in law. criticised.

24. Lest that oral procedure be rendered 28. However, it is apparent, from wholly redundant, the arguments put for- Article 51 of the EC Statute of the Court

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of Justice, that, in order for an appeal to LIE B —• Plea of res judicata on the grounds of a breach of procedure, the interests of the appellant must have been adversely affected.

33. Enichem considers — unlike the Court of First Instance — that the judgment in Commission v BASF and Others gave a 29. In that regard, the appellant merely definitive ruling in the PVC case and that explains that the effect of the Court's the Commission was therefore unable to conclusion was that that part of the appel- adopt a new decision. lant's reply relating to procedural defects was not taken into account for the purposes of the judgment or that it was cut from all the arguments when the joint oral pleadings were heard. That is no more than a general description of the effects inherent in the Court's decision and cannot therefore be 34. It bases its argument, firstly, on regarded as adequate. Article 54 of the EC Statute of the Court of Justice, under which the Court, if it does not wish to give judgment on one or more aspects of the matter, may refer the case back to the Court of First Instance for judgment. In the present case, the Court 30. Indeed, the appellant does not specifi- ruled only on the question of infringement cally mention any argument, put forward in of essential procedural requirements the reply before the Court of First Instance, because that infringement, since it resulted which was not taken into consideration by in the annulment of the PVC I decision, the Court and, a fortiori, has not estab- rendered consideration of the other pleas lished to any degree that, if it had been, it unnecessary. could have had an influence on the Court's decision.

31. Therefore, contrary to the requirements 35. Enichem accordingly inferred that the of Article 51 of the Statute, it does not Court of Justice had held that the PVC case mention any specific damage caused to its was complete following its judgment and interests by the alleged procedural irregu- that the annulment of the PVC I decision larity. disposed of all the aspects of that decision.

32. It follows from the above that this plea should be rejected. 36. I do not agree with that assessment. I - 8538

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37. The case-law of the Court of Justice brought against decisions by which the shows, in fact, that, where a measure Commission imposes a fine. adopted by an institution has been annulled by the Court, the institution is required, in order to comply with the judgment, to have regard to the operative part of the judg- ment and also to the grounds which con- stitute its essential basis. 9 41. It points out, in that regard, that, under that provision, the Court disposes of the whole of the case before it. That is what it did in the case in point, as is apparent from the list of procedural and substantive pleas submitted to it, contained in paragraph 56 38. In the present case, the Court held, in of its judgment. Since it did not make any its PVC I judgment, that the contested mention of further steps in the proceedings, decision should be annulled for infringe- for example by referring the case back to ment of the Commission's Rules of Pro- the Court of First Instance, its judgment cedure and expressly stated, in paragraph encompassed all the aspects raised before 78 of the judgment, that it was therefore it. not necessary to examine the other pleas raised by the appellants.

42. This argument is based on a misunder- standing of the term 'unlimited jurisdic- tion', which means that the Court is 39. Accordingly, the Court did not give entitled to deal with the whole of the case, judgment on these, and left the way open for example, by replacing the Commis- for the Commission to fulfil its obligation sion's decision with its own as regards the under Article 176 of the EC Treaty (now level of the fines. On the other hand, it does Article 233 EC) to take steps to comply not mean that a judgment of the Court of with the Court's judgment by adopting a Justice must inevitably be regarded as fresh decision in accordance with its Rules having disposed even of the pleas which of Procedure. the Court has expressly held do not need to be examined for the purposes of taking a decision on the subject-matter of the dis- pute, namely, the validity of the contested measure.

40. It is pointless for the appellant to invoke, secondly, Article 17 of Regulation No 17, which confers on the Court of Justice unlimited jurisdiction over actions 43. The term 'unlimited jurisdiction' indi- cates the extent of the Court's powers, but 9 — Sec, for example. Joined Cases 97/86, 193/86, 99/86 and 215/86 Asiens and Others and Greece v Commission not the way in which it exercises them in a (1988) ECR 2181, paragraphs 26 and 27. specific case.

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44. It follows from the above that this plea 48. It should be noted that the matter of should be rejected. how measures taken preparatory to a final decision which is annulled should be treated depends on the inferences to be drawn from the annulling judgment. Those, as we have seen above, stem from the grounds of the annulling judgment.

C •— Invalidity of the procedural measures taken prior to the adoption of the PVC I decision 49. The grounds indicate the extent of the obligations of the institution which adopted the annulled measure and there- fore, in particular, the reply to the question whether or not it has to adopt the prepara- 45. Enichem complains that, at paragraph tory measures again. 193 of the contested judgment, the Court of First Instance held that the validity of preparatory measures predating the PVC I decision had not been affected by the annulment of that decision by the Court 50. It is not apparent from any statement of Justice. made in the judgment in Commission v BASF and Others, by which the annulment of the PVC I decision was pronounced, that the nullity extended to the measures taken preparatory to the decision.

46. In the appellant's submission, measures taken preparatory to a final decision do not have an independent existence but remain intellectually and organically attached to 51. That judgment shows, on the contrary, the decision which puts an end to the that the annulment arose from the mere administrative procedure. That decision fact that the Commission infringed the constitutes the objective of those measures. procedural rules governing only the The fact that the defect which results in the detailed procedure for the definitive adop- annulment of the decision related only to tion of the decision. The nullity could not, the final part of the procedure is not a therefore, extend to the procedural stages decisive factor. which predated the occurrence of that irregularity and to which those rules were not intended to apply.

47. In reality, a procedural defect affecting the legality of the final decision is bound to 52. I should point out that the Court of have an impact on previous measures taken Justice also expressly stated in its judgment during the administrative procedure. that it was not necessary to examine the

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other pleas, including, therefore, those 57. None the less, it is important to note relating to the validity of the preparatory that, in both cases, the Commission is measures. required to give due effect to the annulling judgment. It follows that, in both cases, it had to have regard to the judgment when deciding the adoption procedure and the content of the new measure. The fact that, in one case, it was mandatory for it to 53. The situation is therefore similar to that adopt that measure while, in the other, it considered in the judgment in Spain v had the option not to do so, is irrelevant in Commission, 10 cited by the Court of First that regard. Instance, in which the Court of Justice held that the procedure for replacing the annulled measure could be resumed at the very point at which the illegality occurred.

58. The question which arises in both cases is the effect of the annulment on the 54. The differences invoked by the appel- adoption procedure and the content of the lant between the present case and that new measure, not the very principle of its judgment, cited by the Court of First adoption. Instance, are, in my view, irrelevant.

55. Accordingly, the fact that that case 59. It is apparent from the above that this concerned a partial annulment is of no plea should be rejected. consequence since, in any event, the Com- mission, in that case too, decided to adopt a new decision to replace the previous one.

56. The appellant adds, however, that, in D — Misinterpretation and misapplication Spain v Commission, the Commission was of Community law regarding the rights of required, under Article 176 of the Treaty, the defence in the event of the adoption of a to take the steps necessary to implement the new decision to replace an annulled judgment in compliance with the illegality decision finding an infringement established by the Court, whereas, in the present case, the Commission is not required to adopt a new decision.

10 — Case C-415/96 Spam v Commission [1998] ECR 1-6993, 60. Enichem complains that the Court of paragraph 32. First Instance, in paragraphs 246 to 258,

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260 to 268 and 270 of the contested tion on the rights of the defence, particu- judgment, held that a fresh hearing of the larly because the PVC II decision was undertakings concerned, including on the adopted in 1994, when the Commission expediency of adopting a new decision, was decision of 24 November 1990 had already not necessary because the PVC II decision been in force for a long time. did not contain objections which were new in relation to those set out in the PVC I decision.

64. It must be pointed out, first of all, that it has already been shown that the meas- ures taken preparatory to the final decision, including the hearing of the undertakings, 61. It also argues that the Court was wrong the intervention of the Hearing Officer and to consider that, since a fresh hearing of the the meeting of the Advisory Committee, undertakings was unnecessary, there was completed before the adoption of the PVC I no need to call for the intervention of the decision, remained valid. Advisory Committee on Restrictive Prac- tices and Dominant Positions (hereinafter 'the Advisory Committee'). It had thus deprived the Committee of its role of monitoring and guiding the exercise of the Commission's powers. 65. It follows that the undertakings were heard, in accordance with the applicable rules, since they were able to put their case as to the complaints made against them.

62. The appellant adds, finally, that, in respect of the Hearing Officer, the Court of First Instance had wrongly held that the hearing of the undertakings held in 1988 66. In that regard, it should be borne in was sufficient and that the Commission mind that Article 19(1) of Regulation decision of 24 November 1990 on the No 17 provides that, before taking its hearings in proceedings relating to decision, the Commission is to give the Articles 85 and 86 of the EEC Treaty and undertakings 'the opportunity of being Articles 65 and 66 of the ECSC Treaty 11 heard on the matters to which the Com- was not applicable at that date. mission has taken objection'.

67. In that regard, Article 4 of Regulation 63. The acceptance of that time factor No 99/63 provides that the Commission is reflects an explicit and intentional restric- to deal, in its decisions, only with those objections in respect of which the under- takings have been afforded the opportunity 11 — Twentieth Report on Competition Policy, p. 350. to state their views.

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68. It is not claimed that the PVC I decision follows from the above, means that there contained objections in respect of which was also no need to call for the further the undertakings were not heard or that the intervention of the Hearing Officer, whose PVC II decision contained objections addi- role is, by definition, linked to a hearing tional to those contained in the PVC I being held. decision. It follows that, in this case, the regulations did not require the undertak- ings to be given a fresh hearing.

72. As for the consultation of the Advisory C o m m i t t e e , it is a p p a r e n t from 69. Enichem's claim that the hearing also Article 10(5) of Regulation No 17 that allows undertakings to express their views the Advisory Committee is to deliver an on aspects of the case other than the opinion on a preliminary draft decision. objections does nothing to detract from The appellant does not claim that the text that conclusion. Even if that were the case, of the PVC II decision was substantially there would be no grounds for inferring different from that considered by the Com- that the Commission was required to con- mittee, since it merely refers to the Court's sult the undertakings on those other aspects statement, in paragraph 252 of its judg- since, as we have seen, the applicable ment, that the new Decision was adopted in regulations refer to a right to be heard on factual and legal circumstances different the objections, which is perfectly under- from those which existed at the time the standable in the context of protecting the original decision was adopted. However, rights of the defence since, by definition, it the Court went on to say, in the same is against the complaints made against sentence, that that fact did not in any sense them that the undertakings must be able mean that the Decision contained new to defend themselves. objections.

70. As regards the fact that the Commis- 73. In the absence of such substantial sion had the opportunity to conduct a modifications, the regulation did not written exchange of arguments, it should be require, in my view, that the Advisory noted that, since the Commission — as in Committee should be consulted again on a the present case — was not required to text which was substantially the same as hear the parties again, the form which that that on which it had already given its consultation may have taken is unimport- opinion. ant.

71. The fact that it was not necessary to 74. It is apparent from the above that this hold a new hearing of the parties, which plea is unfounded.

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E — Failure to state the grounds for jurisdiction in an unprecedented manner, adopting the PVC II decision following going beyond its usual practice, by adopt- the annulment of the PVC I decision ing a new decision after the Court of Justice had annulled the previous one.

75. Enichem criticises the Court of First Instance for rejecting, in paragraphs 386 and 387 of the contested judgment, its plea alleging infringement of Article 190 of the 78. However, it should be noted that the EC Treaty (now Article 253 EC), inasmuch Court of First Instance was right to point as the Commission did not, in the light of out that the Commission has a discretion- that provision, indicate the reasons which ary power when exercising the prerogatives had led it to repeat its objections and conferred upon it by the Treaty in the area reimpose the fines 15 years after the acts of competition law, and to infer from that against which complaints were made and that it was not required to explain further six years after the adoption of the PVC I the grounds which led it to adopt a new decision. decision.

76. In the appellant's submission, the Court placed a wholly restrictive interpre- 79. The Court has consistently held that tation on the Commission's duty to state the scope of the institution's obligation to reasons, by accepting that the first recital in state reasons depends on the nature of the the preamble to the PVC II decision, which measure in question. In particular, if the merely refers to the Treaty, constituted a institution has a discretion whether to formal reference to the task assigned to the adopt, it cannot be required to state Commission and thus satisfied the require- particular reasons in that regard. 12 ment to state the reasons for the institu- tion's interest in finding an infringement and penalising the undertakings concerned. However, in the light of what the appellant calls the corrective role of the Commis- sion's discretion, attached to the obligation to state reasons, that requirement should be 80. Of course, it is important to distin- interpreted widely, so that the Commis- guish, in that context, between the obli- sion's choices do not avoid review of their gation to state reasons for the act of legality. adopting the measure, which is the subject- matter of the plea raised by the appellant, and the obligation to state reasons for the content of the decision, which the appellant does not claim has been infringed and

77. That is particularly so in the present case, in which the Commission exercised its 12 — Case 247/87 Star Fruit v Commission [1989] ECR 291.

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which means that the decision must state, described in the PVC II decision and the in sufficient detail, the nature of the planning documents in question clearly infringement its addressee is alleged to revealed the existence of a blueprint for a have committed, the reasons why the cartel on the part of ICI. Commission believes that the infringement has occurred and the obligations it intends to impose on the addressee.

84. The appellant also complains that the Court accepted that the planning docu- 81. It is apparent from the above that this ments thereby constituted the basis on plea should be rejected. which consultations and discussions between producers took place, and led to the actual implementation of the unlawful measures envisaged and that the Commis- sion was therefore right to conclude that the planning documents could be regarded as being at the origin of the cartel which F — The error in law committed as materialised in the following weeks. regards the inferences to be drawn from the finding of a lack of correlation between two documents forming the basis of the Commission's accusation

85. The Court thereby substantially altered 82. Enichem points out that, in paragraph the content of the accusation. Con- 670 of the contested judgment, the Court of sequently, the infringement it found was First Instance held that the wording of the significantly less serious than that alleged planning documents, entitled 'checklist' by the Commission, since there had been and 'response to proposals' respectively, no formal consent to the cartel, and also did not support the Commission's con- lasted a shorter time, since the date of the clusion that the second planning document documents no longer indicated the com- constituted the response of the other PVC mencement of participation in the infringe- producers to ICI's proposals contained in ment. However, it did not draw the proper the first. conclusions from that.

83. The appellant criticises the Court for holding, none the less, in paragraph 671 of the contested judgment, that the Commis- 86. It is apparent from the above that, in sion's approach to the evidence was not essence, the appellant is complaining that affected by that fact, since the Commission the Court considered, like the Commission, had produced numerous documents estab- that the planning documents could be lishing the existence of the practices regarded as being at the origin of the cartel,

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although it thought, unlike the Commis- 90. It stated as follows in paragraph 668 of sion, that it was not apparent from their the contested judgment: wording that one constituted the pro- ducers' response to the proposals contained in the other.

'The argument that the two planning 87. The question of determining the pro- documents were unconnected cannot be bative value of such documents indubitably accepted. In the first place, they were both falls within the scope of the appraisal of the found at ICI's premises and were physically facts by the Court of First Instance. attached to each other. Secondly, the According to settled case-law, that apprai- Checklist comprised a list of certain topics sal is not subject to review by the Court of which, in a general way, concerned mech- Justice hearing a case on appeal, save where anisms for monitoring sales volumes and the clear sense of the evidence has been regulating prices. Those topics are them- distorted by the Court of First Instance. 13 selves considered, with greater precision, in the Response to Proposals. Moreover, some of the more detailed points occur in both documents. That applies to the reference to a three-month stabilisation period, the possibility of a price rise in the final quarter of 1980, the need to find an arrangement to 88. It is therefore necessary to determine take account of new production capacity, whether that is the situation in the present or again the possibility of variances on case. It is apparent from reading the con- predetermined market shares, with the tested judgment that it is not so. same reference to a threshold of 5% and to the reservations expressed in that regard. The Court cannot therefore accept that those two documents are unrelated.'

89. Contrary to the appellant's claims, the Court did not establish that there was a lack of correlation between the two docu- ments. Admittedly, it did not hold that it had been proved that one document was the response to the other, but it considered that the two planning documents were 91. Furthermore, it pointed out that the unquestionably linked. planning documents clearly revealed the existence of a blueprint for a cartel and that the Commission produced numerous docu- 13 — See, for example, Case C-53/92 P Hilti v Commission ments establishing the existence of the [1994] ECR 1-667. practices described in the decision. The

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Court noted, finally, that there was a close takings which had contributed to the correlation between these and the practices establishment of the cartel by formally described in the planning documents. indicating their agreement and those which had merely joined a cartel set up by others. 14

92. In the circumstances, I take the view that the Court of First Instance cannot be considered to have distorted the facts by 96. As regards the assessment of the dura- holding that the planning documents con- tion of the infringement, the Commission stituted the basis on which consultations admittedly considers the date of ICI's and discussions between producers took proposals relevant, but does not refer to place, and led to the actual implementation the responses to them. Furthermore, and of the unlawful measures envisaged. above all, it also takes into account the date of the commencement of the new system of meetings.

93. Since the Court of First Instance there- fore reached the same conclusion as the 97. It is apparent from the above that this Commission, it is not possible to maintain, plea should be rejected. as the appellant maintains, that it substan- tially altered the accusation, with regard both to the gravity and the duration of the infringement, which it should have taken into consideration.

G — Attribution of collective liability

94. It should also be noted that the text of the decision does not show that, in order to 98. Enichem complains that, in paragraphs determine the gravity and duration of the 768 to 780 of the contested judgment, the infringement, the Commission had taken as Court of First Instance attributed collective a basis the premiss that the document liability to the appellant, contrary to the 'response to proposals' marked the formal general principle that liability is personal. consent of the other producers to the proposal to form a cartel.

99. In that regard, the appellant points out that, since the Court itself acknowledged

95. On the contrary, the Commission draws no distinction between the under- 14 — See point 53 of the PVC II decision.

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that the planning documents did not rep- 103. In the explanations criticised by the resent the moment at which a joint inten- appellant, the Court cites several passages tion was formed but rather an ICI project, from the PVC II decision which clearly they could not be regarded as evidence that show that the Commission considered that the appellant knew of the common plan. an undertaking was liable not only for its participation in a specific manifestation of the cartel but also in the cartel taken as a whole. In other words, individual liability also includes the fact of participating in the cartel by attending the meetings planning its introduction, without the need to prove that the undertaking participating in those meetings was also specifically associated 100. In the appellant's submission, it was with each measure implemented. also impossible for the Court reasonably to consider that such knowledge had been acquired during the meetings. In fact, there is no evidence of its regular attendance at the meetings. It has not been established in which specific meetings it participated and, furthermore, it has been acknowledged that it did not participate in all the meetings. 104. Thus, in paragraph 768 of its judg- ment, the Court referred to the second paragraph of point 25 of the PVC II decision, in which the Commission states that 'as regards the practicalities of proof, the Commission considers that besides demonstrating the existence of a cartel by 101. The Court could not therefore reason- convincing evidence, it is also necessary to ably hold Enichem responsible for all the prove that each suspected participant infringements on the assumption that it adhered to the common scheme. This does knew of all the manifestations of the cartel. not however mean that documentary proof must exist to show that each participant took part in every manifestation of the infringement'.

102. In so far as this plea can be interpreted not merely as calling into question the Court's assessment of the evidence relating to Enichem's participation in the cartel's 105. In the following paragraph, the Court meetings, which, in the light of the rule in referred to point 31 in fine of the PVC II Hilti v Commission, would be manifestly decision, which states that 'the essence of inadmissible, it calls for the following the present case is the combination of the observations. producers over a long period towards a

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common unlawful end, and each partici- 110. The analysis described above is tanta- pant must not only take responsibility for mount to maintaining that an undertak- its own direct role as an individual, but also ing's individual liability is not restricted to share responsibility for the operation of the its participation in specific manifestations cartel as a whole'. of the cartel but also includes its contribu- tion to what might be called the general administration of the cartel.

106. The Commission's argument, which 111. This argument is not at all shocking was approved by the Court, effectively and cannot be regarded as implying an confirms that an undertaking incurs liabil- acknowledgment of any collective liability. ity by participating in the meetings of the On the contrary, there is nothing unusual in cartel as such, in addition to the liability it holding, for example, that the liability of an incurs by participating in a specific mani- undertaking which participated only briefly festation of the cartel. in the meetings held to administer the cartel is not the same as that of an undertaking which participated regularly, even if the Commission manages to prove only that both undertakings participated equally in specific manifestations of the cartel.

107. That echoes the wording of Article 85 of the Treaty, under which participation in an agreement whose object is anticompeti- tive constitutes an infringement, without the need to establish the existence of an 112. It is therefore perfectly possible for anticompetitive effect. individual liability to arise both from par- ticipation in specific manifestations of the cartel and from a more general contribu- tion to its implementation — what the Commission calls liability for the operation of the cartel as a whole — without by the same token being transformed into a col- lective liability. 108. Should it be considered, as the appel- lant claims, that the Court thereby stated that there was collective liability?

113. However, Enichem relies on the case- law of the Court of First Instance, 15

15 —Case T-6/S9 Emcbem Ame v Commission [1991] ECR 109. I do not think so. II-1623.

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according to which it is possible to exclude reached the conclusion, in paragraphs 931 an undertaking's liability for specific acts, to 941 of the contested judgment, that in the absence of evidence of participation Enichem's individual participation, in the meetings during which certain spe- whether in meetings or in specific mani- cific initiatives were discussed. festations of the cartel, was established, without distortion being alleged.

117. It must therefore be stated that it is 114. None the less, the fact that it is not possible, in the context of an appeal, to possible to exclude liability for specific acts call into question that appraisal by the does not in any sense mean that there is no Court of First Instance of the evidence liability for contributing to an overall relating to the appellant's participation in process, that is to say, participation in the infringement. meetings whose anti-competitive object, namely the administration of a cartel, is not in any doubt.

118. It follows from the above that this plea should be rejected.

115. Of course, the individual liability described in point 112 requires evidence of the participation of the individual under- taking concerned both in the said meetings and the specific manifestations and that the H — Inadequate access to the file penalty adopted should be in proportion to the extent of the evidence established. 119. Enichem complains that the Court of First Instance held that the irregularity committed by the Commission in respect of the undertakings' access to the file could not, in itself, lead to the annulment of the PVC II decision and that defence rights 116. The Court of First Instance adopted were infringed only when the parties' that requirement since, on a general level, it opportunity to defend themselves had noted, in paragraphs 774 and 777 of the actually been affected. contested judgment, that the Commission considered that it had demonstrated that each undertaking had participated in the meetings, the purpose of which was, inter alia, to fix prices in common and, on an individual level, determined whether, for 120. It disputes the method used by the each applicant, that was the case. It thus Court to determine the relevance of the

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documents not disclosed by the Commis- that it is only when non-disclosure of a sion and criticises the Court, in particular, document could have harmed the appel- for disregarding a large number of those lant's defence that it may lead to the documents, without even examining them, annulment of the Commission decision. on the ground that they predated or post- Conversely, according to that case-law, dated the period under consideration. non-disclosure of a document unlikely to be useful to the undertaking's defence has no impact on the validity of the decision.

121. The appellant also takes the view that the failure to disclose all the documents in the file, except confidential or internal documents, constitutes per se an infringe- ment of the rights of the defence. 125. It is important to point out, in that regard, that access to the file is not an end in itself, but is designed to allow undertak- ings effectively to exercise their rights of defence. It is therefore logical that, when an 122. It claims that the method used by the irregularity in access to the file has not had Court of First Instance in the present case any effect on the exercise of those rights, it shifts the burden of proof by requiring cannot lead to the annulment of the con- undertakings to establish a posteriori that tested decision. certain documents could have been of use to them and allows the Commission to refuse access to the administrative file without practical consequences.

126. It follows from the above that the Court of First Instance was right to hold, in 123. The appellant claims, therefore, that a accordance with its existing case-law, that mere finding of incomplete access to the it was only necessary to annul the contested file, other than the Commission's confiden- decision if non-disclosure of documents tial documents and memoranda, should could have had harmful consequences for result in the annulment of the Commission the appellant. decision.

124. This claim has no support in the case-law. 16 That shows, on the contrary, 127. It was therefore perfectly reasonable for the Court to check that that condition 16 — Case C-51/92 P Hercules Chemicals v Commission [ 1999] was fulfilled in this case. It is hard to see ECR I-4235. how it could have applied its case-law any

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other way, if it were not to deprive that conclusive. Even if it were founded, it is condition of all substance. The appellant is still for the appellant to prove the existence therefore wrong to criticise the Court for of documents in respect of which the Court the very fact that it carried out that of First Instance was wrong to hold that examination. non-disclosure did not compromise the rights of the defence.

128. Enichem also considers that, in the examination, the Court made an error of assessment. 132. It cannot just state in abstracto that the Court had followed an incorrect cri- terion. It is still necessary to prove that the consequence of that error was that a document which, on account of its date, 129. It must be stated that whether or not a the Court had held could not have been of given document is likely to be useful for the use for the appellant's defence, did, on the appellant's defence is a question of fact contrary, contain evidence on which the and, as such, is not open to review by the appellant could have relied. Court of Justice hearing an appeal.

130. However, the appellant claims that the very method of examination used by the Court of First Instance was incorrect, 133. This is all the more so in the case of since the Court automatically excluded the appellant's claim — that the Court of documents which either predated or post- First Instance disregarded documents dated the period of inquiry. Yet, the merely on account of their date ·— which appellant argues, it is quite conceivable directly conflicts with the Court's state- that those documents contained evidence ment in paragraph 1040 of the contested relating to the period of inquiry and might judgment, that 'it is also necessary to therefore have been of use to the appel- exclude the documents and extracts relied lant's defence. on by the applicants where they concern a period prior to the origin of the cartel or after the date of the end of the infringement used by the Commission in calculating the amount of the fine. For that purpose, it is not the date of the document which is 131. Without it even being necessary to important but the relevance of the extract consider whether this argument is admiss- relied upon by the applicants with regard to ible, it must be stated that it is not the period of the infringement'.

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134. Enichem does not identify any docu- which was significantly larger than that of ment containing evidence useful for its the operating company. It requests that that defence in respect of which the Court choice be declared unlawful and, accord- wrongly held that non-disclosure did not ingly, that the PVC II decision be annulled. result in infringement of the rights of the defence.

138. It criticises, in particular, the Court's 135. Accordingly, the appellant has not finding in paragraph 986 of the contested established that the irregularity committed judgment, that: in respect of access to the file had the slightest effect on its opportunity to defend itself.

'In this case, it appears that, as it was entitled to do (Boehringer I, paragraph 55; 136. This plea should therefore be rejected. Joined Cases 96/82 to 102/82, 104/82, 105/82, 108/82 and 110/82 IAZ v Com- mission [1983] ECR 3369, paragraphs 51 to 53), the Commission initially determined the total fine, which it then divided between the undertakings by reference to the average market share of each and any attenuating or aggravating circumstances I — Incorrect attribution of liability for which might apply to any of them individ- the infringement to the appellant, as group ually. Therefore, subject to the application holding company, for the purpose of taking of Article 15(2) of Regulation No 17 fixing its turnover into consideration when deter- the maximum fine which the Commission mining the amount of the fine may impose, the turnover of the holding company was not taken into account in determining the amount of the individual fine imposed on the applicant...' 137. Enichem complains of the fact that, in paragraphs 978 to 992 of the contested judgment, the Court of First Instance accepted that the appellant was an addressee of the PVC II decision, as holding company for the ENI group liable for the infringement, on behalf of Enichem Anic, 139. It is important to note that, in the one of the PVC operating companies in the context of this plea, Enichem does not raise group. It claims that the purpose of the the matter of whether the calculation choice of addressee was to take into method used by the Commission consti- account the holding company's turnover, tuted an error of law, a matter which is

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unquestionably a point of law and, as such, 143. Indeed, the fact that the turnover was open to review by the Court of Justice. The taken into account in order to comply with appellant merely disputes the statement that provision still does not prove, contrary made by the Court of First Instance that to the appellant's claim, that it was useful the Commission, when determining the other than for fixing a maximum limit, amount of the fine, did not take into which is not alleged to have been exceeded. account the turnover of the undertakings Furthermore, the appellant does not dis- concerned. pute the Commission's statement that the fine was less than 10% of the turnover of the operating company and, a fortiori, of that of the holding company.

140. However, the Court's finding relating to the manner in which the Commission calculated that amount is an assessment of 144. Furthermore, the appellant's state- fact which cannot be the subject of review ment that the Court had itself stated that by the Court of Justice hearing an appeal, the undertaking's turnover was one of the unless the Court of First Instance has factors taken into account by the Commis- distorted the facts. sion in order to determine the overall fine before distributing it between the convicted undertakings is incorrect. A reading of paragraphs 1174 et seq. of the contested judgment reveals only that, according to the Court, the Commission took into account the 'combined size of the under- takings concerned'. 17 141. The appellant is clearly very far from adducing the slightest inkling of proof of such distortion. It merely persists in repeat- ing that it has extensive doubts as to the veracity of the Court's statement. 145. It is apparent from the context that the Court was alluding to points 51 to 53 of the PVC II decision, in which the Commission cites, amongst the criteria which it took into account, the fact that the undertakings in question 'accounted for 142. The appellant's reference to the fact virtually the whole' of the PVC market. It that the turnover must inevitably have been did not therefore allude to the turnover of relevant since Article 15(2) of Regulation the undertakings, which is not surprising No 17 required the Commission not to since those parts of the PVC II decision to impose a fine exceeding 10% of the turn- which it refers do not do so either. over of the undertaking responsible for the infringement does nothing to detract from that finding. 17 — Paragraph 1175 in fine.

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146. It follows from the above that, since the fine fixed by the PVC II decision was the Commission, contrary to the appel- inevitably different from the relation lant's argument, did not use the turnover of between the turnover established and the the undertakings concerned in order to fine fixed by the PVC I decision. determine the amount of the fine, the question of whether, for that purpose, the operating company should have been held liable for the infringement rather than the holding company is clearly irrelevant. 150. I agree with the Court's assessment that the requirements of Article 15(2) of Regulation No 17 are met if the amount of the fine imposed by the Commission does 147. This plea should therefore be rejected. not exceed 10% of the turnover of the undertaking concerned for the preceding accounting year.

J — Infringement of Article 15(2) of 151. That is apparent from the clear word- Regulation No 17 ing of the provision.

148. Enichem maintains that the Court of First Instance, in paragraphs 1146 to 1148 of the contested judgment, erred in its 152. Enichem's argument in that regard, assessment of the connection between the that the relation between the turnover and turnover for the accounting year preceding the fine inevitably altered between the two the Commission's decision, to which decisions, is therefore irrelevant in the light Article 15(2) of Regulation No 17 refers, of that provision, since, as in the present and the amount of the fine. case, the 10% threshold was not exceeded.

149. In the appellant's submission, the Court was wrong to disregard its claim 153. Indeed, the sole aim of the provision is that the Commission, in the PVC II to impose a maximum limit on the Com- decision, imposed a fine of an identical mission's power to impose penalties. On amount, in absolute value, to that of the the other hand, it is not designed to fine fixed in the PVC I decision, without determine more specifically the relation taking into account the fact that, in the there should be between the amount of circumstances, the relation between the the fine and the turnover of the censured turnover established and the amount of undertaking.

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154. In that regard, the appellant mentions which the Court considered the plea alleg- the need to make sure that the penalty is ing that inadequate reasons were given for neither excessive nor inadequate. The prin- the criteria adopted by the Commission for ciple of proportionality unquestionably calculating the fine, conflict with para- applies to the matter. However, to ensure graphs 986 and 1191 of the judgment and compliance with the principle, it is necess- are inconsistent with the most recent case- ary to take into account criteria other than law relating to the Commission's obligation turnover, as is shown by the case in point, to provide a statement of reasons. in which the Commission followed a series of criteria such as the gravity of the conduct in question, the importance of the product or the market share of the undertakings. 158. The appellant points out that, in order to reject the plea raised, the Court of First Instance analysed points 51 to 54 of the PVC II decision and concluded that they contained a sufficient and relevant indi- cation of the criteria taken into consider- 155. The appropriate amount of the fine is ation, amongst which appeared, in not therefore the result of a simple arith- point 53 of the decision, the 'respective metical relation with the turnover for the importance [of the undertakings] in the preceding financial year, but the result of a PVC market'. whole series of factors.

159. However, a producer's importance could be deduced from its market share as 156. It is apparent from the above that the well as from its turnover. That expression Court was right to hold that Article 15(2) is therefore ambiguous. of Regulation No 17 had not been infringed.

160. The Court therefore contradicts itself by stating both that the criterion of the market shares was conclusive and that the statement of reasons was adequate, since the statement of reasons makes, at best, K — Inadequate statement of reasons for only an ambiguous reference to the market the criteria for calculating the fine shares.

157. Enichem maintains that paragraphs 161. Enichem adds that the Commission 1172 to 1184 of the contested judgment, in should be required to give its calculations

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within the body of the decision so that 165. According to settled case-law, 18 the undertakings and the Community judica- requirements which the statement of rea- ture are not obliged to guess how the sons of a decision must fulfil depend on the general criteria stated are reflected in context, which, in this case, includes the figures, and in order to allow observations appellant's prior knowledge gained in con- by the parties and a review of legality by sequence of the PVC I procedure. the Community judicature.

166. Since the similarity between the two decisions in that respect is not disputed, the 162. The Court of First Instance was there- Court's finding that, in the circumstances, fore wrong merely to indicate, in paragraph the PVC II decision was sufficiently rea- 1180 of the contested judgment, that it was soned cannot be disputed. 'desirable' for undertakings to be able to determine in detail the method whereby the fine imposed had been calculated, without their being obliged, in order to do so, to bring court proceedings against the decision. 167. Furthermore, more specifically con- cerning the question of the reasoning being included in the body of the decision rather than in a table supplied subsequently, the Court of Justice held, 19 in a context similar to the one in this case, that the requirement 163. That argument is unfounded. to state reasons is satisfied where the Commission indicates in its decision the factors which enabled it to determine the gravity and duration of the infringement. Only if those factors are not stated is the decision vitiated by failure to state reasons.

164. It must be remembered that, in para- graph 1183 of the contested judgment, the Court of First Instance found as a matter of fact that the appellant already knew the detailed method of calculating the fine 168. However, in the present case, the imposed since, in the course of the actions Court of First Instance stated, 20 without challenging the PVC I decision, it had being contradicted by the appellant, that, in obtained information in that respect from a table produced by the Commission at the Court's request for clarification and 18 — Sec, for example, Case C-278/95 P Siemens v Commission annexed to the application lodged against [1997] ECR I-2507, paragraph 17. the PVC II decision. Moreover, the appel- 19 — Case C-279/98 P Cascades v Commission [2000] ECR I-9693, paragraph 43. lant itself refers to it. 20 — Paragraphs 1175 to 1178 of the contested judgment.

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paragraph 52 of the contested decision, the years 1983-1984. The appellant points out Commission explained its reasoning in that, at all stages of the procedure, it had relation to the gravity of the infringement itself claimed to have an average share of and, in paragraph 54, considered the dur- under 4% for the first period, a share of ation of the infringement. 12.8% for 1983 and of 12.3% for 1984.

172. The appellant complains that, in 169. The Court was therefore right, for paragraphs 615 and 616 of the contested that reason also, to reject the plea alleging judgment, the Court of First Instance held that the PVC II decision was insufficiently that the data provided by the appellant was reasoned, whatever interpretation should unreliable and, in any event, deceptive, be given to point 53 of the Commission's since it had not specified the bases on decision. which it had determined its market share for 1984 and had 'reduced' that share by relating those sales figures not to sales of European producers but to figures for European consumption, which were necess- arily higher since they included imports.

170. This plea should therefore be rejected.

173. According to Enichem, the Court's findings are incorrect and show a failure to take into account the information the appellant had submitted. It points out, in particular, that, even if its sales were L — Misinterpretation and misapplication related to those of European producers, of Community law and inadequate apprai- there would still be a significant difference sal of the evidence concerning the relation between its figures and those stated by the between the fine imposed on the appellant Commission. and its market share

171. Enichem states that it maintained 174. Enichem also criticises the Court for before the Court of First Instance that, for having stated, in paragraphs 1201 to 1204 the purpose of determining the amount of of the contested judgment, that, contrary to the fine, the Commission had committed an what the appellant maintains, the Commis- error in respect of the appellant's market sion had assessed the appellant's market share by assessing it to be an average of 6% share to be less than 10%, not 15%, during for the period 1980-1982 and 15% for the the period 1980 to 1984.

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175. The appellant points out, in that 179. It really has to be said that the only regard, that the average of 10% was complaint of inadequacy which the appel- obtained from the figures of 6% and 15% lant actually makes against the Court of assessed by the Commission for the years First Instance is that it did not reach the 1980-1982 and 1983-1984 respectively, same conclusion as the appellant with which it has always refused to accept as regard to the figures provided by the applicable to it. It submits that its average appellant and by the Commission. Enichem market share during the four years in disagrees with the result of the examination question was 7.2% — or 7.7% if its sales carried out by the Court of First Instance of were related to those of European pro- the data which the appellant provided and ducers — and therefore significantly lower requests the Court of Justice to carry out than the 9.6% stated by the Commission. another. On the basis of that market share, the fine imposed on Enichem should have been less than ECU 2 000 000, instead of the ECU 2 500 000 it was ordered to pay. 180. This is therefore what might be described as a standard example of a plea of fact, which is not open to review by the Court of Justice hearing an appeal.

176. What are we to make of this argu- ment?

181. Consequently, the plea is manifestly inadmissible unless it is alleged that the Court of First Instance has distorted the facts. 177. The appellant seems, a priori, to be raising a plea of pure fact since it submits for appraisal by the Court of Justice the figures which have already been examined by the Court of First Instance. 182. However, the appellant invokes dis- tortion only in order to call into question the Court's statement, in paragraph 1204 of the contested judgment, that the appel- lant had not challenged the fixing of its average market share at 10%. 178. Referring to the method of examining the evidence as inadequate changes nothing in that regard. Indeed, in the present case, it is impossible to speak of an inadequate examination since the Court of First 183. That is to no avail, since the Court did Instance not only raised questions on the not state that the figure was unchallenged, matter but also devoted considerable argu- but held that there had been no serious ment to it in its judgment. challenge by the applicant.

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184. That argument is therefore insepar- European producers, the market share able from the main complaint put forward claimed by the applicant was substantially by the appellant, which is that the Court of reduced. First Instance rejected the data it had provided. It is therefore necessary to con- sider whether the Court distorted the facts.

188. However, it does not dispute the fact that it was reduced but points out that there had been no intention to conceal on its part. The market of a product is not 185. The Court of First Instance took into defined on the basis of the sales of the account the fact that the appellant did not producers accused by the Commission, but give the basis for its figures, and therefore on the basis of all the sales on the held that it was unable to consider them geographical market of reference. Fur- sufficiently reliable. thermore, Enichem does not know what reference was used by the other undertak- ings to calculate their market shares.

186. It must be stated, in the light of the annexes to the application, on which the appellant bases its view, that the Court's 189. In that regard it should be pointed assessment cannot be challenged. The out, in any event, that it was for the Court documents in question either contain the of First Instance to compare the appellant's figures without any explanation or, in one figures with that of the Commission. It was case, include explanations, provided by the therefore reasonable for the Court to note appellant, which tend to show the uncer- that there was a difference in methodology tainty surrounding the data which served as and that that difference had an inevitable a reference for drawing up those figures. and undisputed arithmetical effect.

190. It is apparent from the above that the 187. The appellant also criticises the appellant has not established in what Court's statement that, since the sales respect the Court of First Instance distorted figures produced by Enichem related to the facts in this case. Its plea should European consumption, not to sales of therefore be rejected as inadmissible.

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M — Infringement of the principle of 194. In order to comply with that principle, proportionality during the fixing of the the Commission could very easily have amount of the fine adopted a method enabling it to retain the value of the fine originally imposed.

191. Enichem points out that the fine imposed by the PVC II decision is the same as that imposed by the PVC I decision. However, the real value of that fine, 195. Enichem also criticises the Court for assessed at the date of each of the two having held that the risk of variations in decisions, is very different and constitutes exchange rates was inevitable and that the an unfair penalty. Converted in 1988, the appellant should have protected itself sum of ECU 2 500 000 was equivalent to against that risk for as long as the case ITL 3 842 000 000 whereas, at the 1994 was pending before the Court of First c o n v e r s i o n r a t e , it r e p r e s e n t e d Instance and then before the Court of ITL 4 835 000 000. In real terms, that Justice. means a 20% increase in the fine, although the criteria according to which it had been determined, in particular the gravity and duration of the infringement, were ident- ical.

196. It maintains, in that regard, that the fluctuation in exchange rates is a vagary peculiar to trade, but unrelated to the application of the law. The close connec- 192. Enichem disputes the grounds on tion between the amount of the fine and the which the Court rejected that complaint gravity of the infringement committed in paragraphs 1215 to 1224 of the con- cannot be altered by wholly external fac- tested judgment. tors.

193. It points out that the Commission's 'right' to express the amount of the fine in 197. Furthermore, it is, the appellant sub- ecus, as stated by the Court, is a power mits, incorrect to say that Enichem should which the Commission is required to exer- have protected itself against the risk of cise in compliance with fundamental prin- change during the proceedings before the ciples, including the principle of propor- Court of Justice. Indeed, during the cor- tionality. responding period, any obligation to pay

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the fine had disappeared since the PVC I undertakings have to deal with regularly in decision had been declared non-existent. the course of their business activities and whose very existence is not such as to render inappropriate the amount of a fine lawfully fixed'.

198. However, it should be pointed out in that regard that, since the judgment of the Court of First Instance was subject to appeal, the appellant could not behave as if that declaration of non-existence were definitive.

202. The Court added that, 'in any event, the maximum amount of the fine, deter- mined by virtue of Article 15(2) of Regu- 199. Enichem adds, finally, that the Com- lation No 17 by reference to turnover in mission should have accepted the responsi- the business year preceding the adoption of bility for causing the nullity of the PVC I the Decision, limits the possible harmful decision and Enichem should not have had consequences of monetary fluctuations'. to bear an additional burden owing to an error committed by others.

200. The Court of Justice has already had occasion to look into the matter raised by the appellant. A similar line of argument was the subject of its consideration in 203. Let us remember that it is not claimed Sarrio v Commission 2 1 and Enso Española that, in the present case, that limit has been v Commission. 22 exceeded.

201. It held that monetary fluctuations are 'an element of chance which may produce advantages and disadvantages which the

21 — Case C-291/98 P Sarrio v Commission [2000] ECR I-9991, 204. It follows from the above that this paragraph 89. plea should be rejected. Therefore, the 22 — Case C-282/98 P Enso Española v Commission [2000] ECR I-9817, paragraph 59. appeal should be rejected in its entirety.

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Conclusion

205. In the light of the foregoing considerations, I propose that the Court should:

— dismiss the appeal;

— order the appellant to pay the costs.

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