88/501/EEC: Commission Decision of 26 July 1988 relating to a proceeding under Articles 85 and 86 of the EEC Treaty (IV/31.043 - Tetra Pak I (BTG licence) (Only the English and French texts are authentic)

• Articles: 4

Article 1

The acquisition by or on behalf of Tetra Pak Rausing SA of the exclusivity of the licence between NRDC and Novus Corp. of 27 August 1981 through the purchase of the Liquipak Group in so far as it has effects in the EEC constituted an infringement of Article 86 from the date of acquisition until this exclusivity effectively came to an end.

Article 2

This Decision is addressed to:

Tetra Pak Rausing SA

70 avenue Général Guisan,

PO Box 181,

CH-1009 PULLY/LAUSANNE;

c/o Tetra Pak Italiana SpA,

Via Delfini 1, I-41100, MODENA.

Done at Brussels, 26 July 1988.

For the Commission

Peter SUTHERLAND

Member of the Commission

(1) Nungesser v. Commisson, Case 258/78 (1982) ECR 2015.

(2) This line of reasoning is consistent with the Court's rulings in other fields, eg. selective distribution (SABA I and II - Metro v. Commission, Case No 26/76 (1977) ECR p. 1875, and Metro-SG-Grossmaerkte GmbH & Co KG, Case 75/84 Judgment of 22 October 1986, neither of which has yet been published in the Official Journal) where in certain market circumstances selective distribution falls outside the scopoe of Article 85 (1) but in other circumstances selective distribution may fall within the scope of Article 85 (1).

(1) See Gesellschaft zur Verwertung von Leistungsschutzrechten mbH (GVL) v. CEC, Case No 7/82 (1983) ECR p. 483.

Article 86

(60) The Commission considers that, at the time of the acquisition of the Liquipak group and the assignment of the licence to it, Tetra occupied a dominant position in the EEC market for the production of machines incorporating technology for sterilizing cartons, used for filling under aseptic conditions board cartons with UHT-treated liquids, including in particular milk. Tetra abused its dominant position by the acquisition of this exclusive licence which hqad the effect of strengthening its already dominant position, further weakening existing competition and rendering even more difficult the entry of any new competition. This abuse lasted until Tetra renounced all claims to this exclusivity.

Article 85 (1)

(61) On the basis of the reasons set out above the Commission considers that the exclusivity provisions, as far as they have effects in the common market, contained in the licence between NRDC and Novus Corp. of 27 August 1981 fell within the scope of Article 85 (1) at least from the date of the agreement to assign this licence to Tetra until Tetra renounced all claims to this exclusivity. Had not Tetra renounced all claims to this exclusivity the Commission would, in accordance with Article 9 of Regulation (EEC) No 2349/84, have withdrawn the benefit of the exemption provided under this Regulation, because the conditions necessary for an exemption under Article 85 (3) were not fulfilled.

VI. Termination of infringement and reservation of right to take further action

(62) Although Tetra has renounced all exclusivity to the licence in question and BTG has announced that it is negotiating with both Tetra and Elopak to grant non-exclusive licences, the Commission considers for the reasons set out below that it has an obligation to take a decision in this case (1).

1. Tetra committed a serious abuse of Article 86 and in conjunction with BTG infringed Article 85 (1) in a way that could not have been exempted under Article 85 (3). These contraventions of the rules of competition were only terminated when Tetra changed its attitude following the intervention of the Commission during the course of its official investigation.

2. Were it not for the fact that the contraventions of the rules of competition were relatively novel, the Commission would have sought to impose a fine on Tetra for its behaviour. The Commission feels that a formal decision will clarify its position on this topic and formally warn not only Tetra of its attitude but also other firms who may undertake similar lines of conduct.

3. Even though willing to renounce exclusivity Tetra still denies that it holds a dominant position or has committed any abuse or has infringed Article 85 (1) in any way that is not exemptable. In addition, BTG has stated it

would still prefer to grant an exclusive licence. A decision is therefore necessary to ensure that the exclusivity is not reinvoked by the parties and also to indicate the clear position of the Commission towards other similar behaviour.

4. Furthermore, the Commission cannot overlook the legitimate interest of Elopak which made an application to the Commission pursuant to Article 3 of Regulation No 17. Other potential competitors also have an interest in the legal security which might result from such a public declaration by the Commission.

(63) In addition, the Commission reserves the right to continue its investigations into Tetra's wider commercal behaviour on the markets for milk cartons (both fresh and aseptic) and packaging machines (both fresh and aseptic) in order to determine whether Tetra has committed any further infrigements of either Article 85 or Article 86,

HAS ADOPTED THIS DECISION:

Schedules & Appendices

ANNEX

Table 1

Cartons sold 1985

(millions of packages)

1.2,3.4,5 // // // // // Aseptic // Non aseptic 1.2.3.4.5 // // Tetra // Others // Tetra // Others // // // // // // Belgium/Luxembourg // 502 // 100 // 21 // 50 // (%) // (83,4) // (16,6) // (29,6) // (70,4) // Denmark // 237 // - // 343 // 650 // (%) // (100,0) // // (34,5) // (65,5) // France // 2 916 // 200 // 253 // 200 // (%) // (93,6) // (6,4) // (55,8) // (44,2) // Federal Republic of Germany // 3 262 // 750 // 793 // 1 100 // (%) // (81,3) // (18,7) // (41,9) // (58,1) // Greece // 66 // 50 // 10 // 50 // (%) // (56,9) // (43,1) // (16,7) // (88,3) // Ireland // 15 // 50 // 337 // 150 // (%) // (23,1) // (76,9) // (69,2) // (30,8) // Italy // 2 756 // 50 // 1 288 // 400 // (%) // (98,2) // (1,8) // (76,3) // (23,7) // Netherlands // 269 // 200 // 379 // 800 // (%) // (57,4) // (42,6) // (32,1) // (67,9) // Portugal // 539 // - // 20 // - // (%) // (100,0) // // (100,0) // // Spain // 1 408 // - // 127 // 100 // (%) // (100,0) // // (55,9) // (44,1) // United Kingdom // 1 108 // 200 // 821 // 1 200 // (%) // (84,7) // (15,3) // (40,6) // (59,4) // // // // // // Total EEC // 13 078 // 1 600 // 4 392 // 4 700 // (%) // (89,1) // (10,9) // (48,3) // (52,7) // // // // //

Source: Tetra

Table 2

Packaging machines leased or sold

and still operating at end 1985 per Member State

1.2,3.4,5 // // // // // Aseptic // Non aseptic // // 1.2.3.4.5 // // Tetra // Others // Tetra // Others // // // // // // Belgium/Luxembourg // 58 // 5 // 9 // 3 // (%) // (92,1) // (7,9) // (75,0) // (25,0) // Denmark // 48 // - // 54 // 101 // (%) // (100,0) // // (34,8) // (65,2) // France // 276 // 14 // 29 // 48 // (%) // (95,2) // (4,8) // (37,7) // (62,3) // Federal Republic of Germany // 332 // 73 // 116 // 150 // (%) // (82,0) // (18,0) // (43,6) // (56,4) // Greece // 10 // 2 // 4 // 5 // (%) // (83,3) // (16,6) // (44,4) // (55,6) // Ireland // 4 // - // 61 // 27 // (%) // (100,0) // // (69,3) // (30,7) // Italy // 428 // 6 // 328 // 96 // (%) // (98,6) // (1,4) // (77,4) // (22,6) // Netherlands // 42 // 31 // 30 // 50 // (%) // (57,5) // (42,5) // (37,5) // (62,5) // Portugal // 52 // - // 4 // 1 // (%) // (100,0) // // (80,0) // (20,0) // Spain // 172 // - // 50 // 57 // (%) // (100,0) // // (46,7) // (53,3) // United Kingdom // 148 // 10 // 122 // 215 // (%) // (93,7) // (6,3) // (36,2) // (63,8) // // // // // // Total EEC // 1 570 // 141 // 807 // 753 // (%) // (91,8) // (8,2) // (51,7) // (48,3) // // // // //

Source: Tetra

73

116

150

(%)

( 82,0 )

( 18,0 )

( 43,6 )

( 56,4 )

GREECE

10

2

4

5

(%)

( 83,3 )

( 16,6 )

( 44,4 )

( 55,6 )

IRELAND

4

_

61

27

(%)

( 100,0 ) //

( 69,3 )

( 30,7 )

ITALY

428

6

328

96

(%)

( 98,6 )

( 1,4 )

( 77,4 )

( 22,6 )

NETHERLANDS

42

31

30

50

(%)

( 57,5 )

( 42,5 )

( 37,5 )

( 62,5 )

PORTUGAL

52

_

4

1

(%)

( 100,0 ) //

( 80,0 )

( 20,0 )

SPAIN

172

_

50

57

(%)

( 100,0 ) //

( 46,7 )

( 53,3 )

UNITED KINGDOM

148

10

122

215

(%)

( 93,7 )

( 6,3 )

( 36,2 )

( 63,8 ) // // // // //

TOTAL EEC

1 570

141

807

753

(%)

( 91,8 )

( 8,2 )

( 51,7 )

( 48,3 ) // // // // //

SOURCE : TETRA