98/273/EC: Commission Decision of 28 January 1998 relating to a proceeding under Article 85 of the EC Treaty (Case IV/35.733 - VW) (Only the German text is authentic) (Text with EEA relevance)

• Articles: 6

Article 1

Volkswagen AG and its subsidiaries Audi AG and Autogerma SpA have infringed Article 85(1) of the EC Treaty, by entering into agreements with the Italian dealers in their distribution network in order to prohibit or restrict sales to final consumers coming from another Member State, whether in person or represented by intermediaries acting on their behalf, and to other authorised dealers in the distribution network who are established in other Member States.

Article 2

Volkswagen AG shall bring to an end the infringements established in Article 1 immediately upon notification of this Decision and shall not replace restrictions of that kind with restrictions having similar objectives. In particular, Volkswagen AG shall, within two months of notification of this Decision:

(a) amend the contract with the authorised Italian dealers so that bonus payments are not granted according to whether sales are made within the contract territory or to another Member State;

(b) inform the authorised Italian dealers by circular that the margins scheme introduced in the circulars of 20 October and 2 November 1994 has been abolished wherever the margins are smaller for a sale concluded within the contract territory;

(c) inform the authorised Italian dealers by circular that all restrictions on cross-deliveries to network dealers in the other Member States have been abolished, pointing out that it is no longer necessary to obtain the prior consent of the importer and that no penalties in the form of restricted supply or termination of the dealer's contract need be feared if the dealer sells to final consumers from other Member States who act either for themselves or through an intermediary appointed by them;

(d) inform all authorised dealers in the VW/Audi distribution network in the European Community, by circular, that all restrictions on cross-deliveries from Italy to the other Member States are abolished;

(e) instruct its subsidiary, Audi AG, to send circulars setting out points (a) to (d) to its contract dealers in the European Community and shall instruct its subsidiary Autogerma SpA to send circulars setting out points (a) to (c) to its Italian contract dealers.

Article 3

In view of the gravity of the infringement of Article 85(1) of the EC Treaty a fine of ECU 102 million (one hundred and two million ecus) is imposed on Volkswagen AG.

Article 4

The fine determined in Article 3 shall be paid in ecus within months following the date of notification of this Decision into the following bank account of the Commission of the European Communities:

310-0933000-43

Banque Bruxelles Lambert

Agence Européenne

Rond Point Schuman 5

B-1040 Bruxelles.

After the expiry of that period, interest shall become payable. The rate applicable shall be that which the European Monetary Institute applies for transaction in ecus. The interest shall be payable from the first working day of the month in which this Decision was adopted. A supplement of 3,5 (three and a half) percentage points shall be charged. In total, the interest rate shall be 7,75 %.

Article 5

With regard to the obligations mentioned in Article 2, a penalty payment of ECU 1 000 shall be imposed on Volkswagen AG for each day of delay in implementing this Decision. Such delay shall start from the expiry of the two-month period specified for their implementation.

Article 6

This Decision is addressed to Volkswagen AG, D-38436 Wolfsburg.

This Decision shall be enforceable pursuant to Article 192 of the EC Treaty.

Done at Brussels, 28 January 1998.

For the Commission

Karel VAN MIERT

Member of the Commission

Footnotes

(The documents referred to in these notes marked with * were classified as confidential by the parties and those marked with ** were classified by them as highly confidential)

(*) All the notes and the translations of passages quoted in languages other than English appear at the end of this Decision.

(1) OJ 13, 21.2.1962, p. 204/62.

(2) OJ 127, 20.8.1963, p. 2268/63.

(3) Memo, Italien, 19 September 1994 (Audi, AU-MW D 32).

(4) Internal memo, Reimporte, 3 March 1994 (Volkswagen, AU-GK D 3); internal memo, Reimporte Audi, 10 May 1994 (Volkswagen, AU-VE G D 38).

(5) Survey, In Deutschland zugelassene Re-Importfahrzeuge (Italien), 6 April 1995 (Volkswagen, VW-DB B 9 Sekretariat Santelmann, file 'Re-Importe`); internal memo: Re-Importe Audi, 8 May 1995 (Volkswagen, AU-VE D 106).

(6) Internal memo , Reimporte, 3 March 1994 (Volkswagen, AU-GK D 3); internal memo, Reimporte Audi, 10 May 1994 (Volkswagen, AU-VE G D 38); internal memo, Re-Importe Audi, 9 February 1995 (Volkswagen, AU-VE C D 78); internal memo, Re-Importe Audi, 8 May 1995 (Volkswagen, AU-VE D 106); internal memo, Re-Importe Audi, 21 August 1995 (VW, AU-KS B 6).

(7) Internal memo, Reimporte, 3 March 1994 (Volkswagen, see note 4); internal memo, Re-Importe VW, 8 May 1995 (Volkswagen, AG 000345).

(8) Survey, Graumarkt/Projekt, January 95 (Audi, AU-VE C D 85); survey, Graumarkt Italien, 5 February 1995 (Audi, AU-VE C D 86); survey, Vendite veicoli nuovi fuori territorio, 17 February 1995 (Audi, AU-VE G D 28).

(9) Internal memo, Reimporte, 3 March 1994 (Volkswagen, see footnote 4); survey, In Deutschland zugelassene Re-Importfahrzeuge (Italien), 6 April 1995, (Volkswagen, see footnote 5); internal memo Re-Importe VW, 8 May 1995 (Volkswagen, see footnote 7).

(10) Internal memo, Reimporte, 3 March 1994 (Volkswagen, see footnote 4); internal memo, Re-Importe Audi, 8 May 1995 (Volkswagen, see footnote 6).

(11) Commission of the European Communities, DG IV - Competition, Car Price Differentials in the European Union, various editions.

(12) Details of models and calculations are given in the press releases announcing the reports: IP(93) 545, 1 July 1993; IP(93) 1201, 22 December 1993; IP(94) 704, 26 July 1994; IP(95) 50, 19 January 1995; IP(95) 768, 24 July 1995; IP(96) 145, 15 February 1996. Figures for Austria have been available only since Austria's accession on 1 January 1995.

(13) OJ L 15, 18.1.1985, p. 16, and OJ L 145, 29.6.1995, p. 25).

(14) Letter to Volkswagen, Parallelexporte, 21 September 1994 (Autogerma, AG 000878); translation:

'There is great concern throughout the whole Italian sales organisation with regard to the achievement of sales objectives and the need to maintain the sales successes of the past. This necessity has led some of our partners, under pressure from outside sales organisations, including a number of foreign Volkswagen and Audi dealers, to sell in places far from those designated in their contracts, and in some cases indeed outside the country.

The steps taken by Autogerma are therefore intended to warn the Volkswagen/Audi dealers to stay in the territories designated by their contracts; checks have been carried out on all dealers individually in order to establish that they are complying with their contract, with particular reference to sales activities outside the contract territory (six dealers have had their contracts terminatd for breach of contract, subject to the provisons of the clauses regarding notice, which provide that the contracts are to come to an end between the end of 1994 and the middle of 1995). With other dealers we intend to raise allegations of breach of contract, on the basis of certain "audits results" regarding deliveries, in order to obtain more detailed data on the final purchasers of the vehicles.

We will be developing this approach further in the sales organisation; the plan calls for a new and even more important margins structure, with a higher percentage for the "maggiori sconti" bonus, which depends on the achievement of the quantity and quality obligations in the contract, and a lower fixed percentage on vehicle invoices. This will give a better distribution of the margins . . .

Annex to the letter COMIORG/EP/st. of 21 September 1994

>TABLE>.

(15) Letter ** to Volkswagen, 26 September 1994 (Autogerma AG 000905).

(16) (Volkswagen, VW-KH HDK Re-Exporte). The extract quoted here translates as follows:

'. . .

- written information (trade) on Directive (EEC) No 123/85,

- repeated auditing of various dealers. Cautions, reduced bonuses, 11 terminations (volumes endangered: about 8 800 vehicles in 1995) - see Annex,

- bonus (quarterly) is paid on the basis of vehicle registrations in the contract territory,

- disproportionate list price increases,

- avoidance of excessive stocks at retail level,

- margin splitting for the Polo A 03,

- 8 % immediately upon invoice

- 5 % proof of new registration in contract territory

- 3 % bonus (targets, customer satisfaction, business standards)

- miscellaneous (see letter AG, 26 June 1994) . . .`.

(17) Memo, Grauimporte Italien, 12 December 1994 (Audi, AU-DH C Doc 1).

(18) (Autogerma, AG 000253). The indications of time in this memo are to be read as follows: '2/F.M.P.94` means 'second four-month period 1994`, so that these measures begin on 1 May 1994; '3/F.M.P.94` means 'third four-month period 1994`, so that these measures begin on 1 September 1994;

'1/F.M.95` means 'first four months` - 'period` has clearly been omitted - so that these measures begin on 1 January 1995.

(19) See for example letter to Audi, Ermittlung von Reimporten, 3 May 1994 (KBA, AU-VE D 113).

(20) Letter to Audi, Ermittlung von Reimporten, 20 April 1994 (KBA, AU-VE D 114).

(21) E-mail message, (Re-) Importe, Herstellerbescheinigungen, 26 January 1995 (Audi, AU-KS B 9).

(22) See for example the survey Reexporte VW 1993, 30 March 1994 (Autogerma, AG 000184).

(23) A manufacturer's certificate of conformity had to be submitted in order to register a vehicle with the German authorities; one way in which the chassis numbers could be ascertained was from applications for such manufacturer's certificates made by customers, or by dealers outside the distribution network acting on customers' behalf: see for example memo to Autogerma, Von Privatpersonen (Firmen oder verdächtigten Personen) angeforderte Herstellerbescheinigungen, undated (Audi, AU-VE G D 19); memos to Autogerma, both entitled Reimporte, 12 January and 17 January 1995 (Audi, AU-MW 11)). A manufacturer's certificate or what is known as an 'information document` was required for every imported or reimported vehicle from 1 December 1994 onward, under a rule laid down by the Federal Ministry of Transport: see e-mail message, (Re-) Importe, Herstellerbescheinigungen, 26 January 1995 (Audi, AU-KS B 9); but this rule clearly was not applied in all Länder: fax to Audi, Verfahren gegen Reimporteure, 24 March 1995 (Volkswagen, AU-GK E 4).

(24) See for example e-mail message to Autogerma, Re-Import, 26 April 1994 (Audi, AU-GK 3); memo, Re-Import Italien, 19 August 1994 (Audi, AU-GK D 3); memo to Autogerma, Fahrzeug-Kaufverträge, 26 January 1995 (Audi, AU-MW D 27); e-mail message to Autogerma, fahrgestellnr, 15 March 1995 (Audi, AU-VE D 63); e-mail message to Autogerma, fahrgestellnr, 21 March 1995 (Audi, AU-VE G D 62).

(25) Letter (fax) to Audi: Parallel-Markt, 21 March 1995 (Autogerma, AU-VE C D 60).

(26) Letter to Autogerma, Verkauf von Volkswagen und Audi Fahrzeugen an gewerbliche Wiederverkäufer, 18 January 1995 (Volkswagen, AG 000333).

(27) E-mail message to Audi, A4 Privat, 24 February 1995 (Audi, AU-MW D 3).

(28) Memo, Anschreiben Graumarkt, 16 March 1995, and corresponding circular to dealers, 14 March 1995 (Audi, AU-GK D 3).

(29) Porsche Austria Gesellschaft m.b.H. & Co. is the main importer for Volkswagen, Audi and Porsche in Austria.

(30) Fax to Audi, Grauimport, 18 May 1995 (Porsche Austria, AU-VE 2).

(31) Fax to Audi, Grauimporte, 27 March 1995 (Porsche Austria, AU-VE 5 and WV-KH K-15 HDK, file Re-exporte); the extract quoted in recital 145 translates as follows:

'In recent conversations with the dealers in the areas concerned we have found that the grey imports question has calmed down. So far not a single A4 has been imported from Italy to Austria.

The measures you have taken jointly with the Italian importer seem to be working. We would like to extend our warmest thanks to you and all those who have worked along with you . . .`.

See also fax to Autogerma, 5 July 1995 (Porsche Austria, AU-VE D 137).

(32) Memo, Reimporte; Standard-Schreiben, 27 January 1994 (Audi, AU-DH C Doc 7).

(33) See for example letter to Wieser, 17 February 1995 (Audi, AU-KS A 2); letters to Petersen, 3 April and 10 April 1995 (AU-MW D 3).

(34) Memo, Empfehlungen für Korrespondenzfälle und Auskünfte bei Anfragen europäischer Privatkunden, undated (Volkswagen, VW-KH K 35 and 36); the extract quoted here and in recital 163 translates as follows:

'under no circumstances should the impression be given that on instructions from VW AG, Autogerma or individual people at Autogerma no information can be given to private customers or intermediaries acting on customers' behalf. . .`

(35) Fax message to Autogerma, Kunde N. Lenz, 9 June 1995 (Volkswagen, VW-KH K 26).

(36) See for example letter to Autogerma, Auto Pedross - Verkauf an deutsche Privatkunden, 1 March 1995 (Volkswagen, VW-SR R 20); letter to Commission, Beschwerde, 27 April 1995 (Bernhard, VW-DB B 18); memo, Anruf eines Kunden, 7 July 1995 (Volkswagen, VW-KH K-38); letter to Audi, Kauf eines Audi in Italien, 8 August 1995 (Simon, AU-VE G D 12); fax to Autogerma: Kunde Keppler, 14 August 1995 (Volkswagen, AG 000530).

(37) See for example letter to Autogerma, 7 February 1995 (Friedrich, AG 000202).

(38) Letter to Friedrich, Kauf eines Polo, 24 February 1995 (Autogerma, AG 000200, see footnote 37); writing to Volkswagen in connection with this letter, Autogerma confirmed the supply situation: 'we have dramatic shortages for many models, including the Polo and the Audi A4`; Autogerma consequently recommended that the customer should be referred to a German dealer (fax to Volkswagen, Briefe von H. Dieter Friedrich, 27 January 1995 (Autogerma, AG 000204, see footnote 37).

(39) See for example letter to Baur, Autokauf in Italien, 14 June 1995 (Autogerma, AG 000269).

(40) See for example letter to Volkswagen, Parallelexporte, 21 September 1994 (Autogerma, see footnote 14).

(41) See for example fax message to Autogerma, Händleraudits Re-Importe Italien, 26 November 1993 (Volkswagen, AG 000054); letter to Audi, Export von Parallelfahrzeugen, 30 January 1995 (Autogerma, AG 000195).

(42) Memo, Measures to control and prevent re-export, 15 March 1995 (Autogerma, see footnote 18); letter ** to Audi: Measures to control and prevent re-export, 26 September 1994 (Autogerma, see footnote 15); memo, Maßnahmen der Autogerma zur Unterbindung von Reexporten aus Italien, 31 January 1994 (Autogerma, VW-SR R 6); report, Besuch bei Autogerma, 10 February 1995 (Audi, AU-MW D 37).

(43) See for example letter ** to Volkswagen, Measures to control and prevent re-export, 26 September 1994 (Autogerma, AG 000634).

(44) Internal memo * Auditing sull'attività di vendita della Concessionaria BRENNER GARAGE BZ sino al 30 novembre 1994, 13 January 1995 (SEVO, AG 000761); internal memo *: 'Attività di vendita della Conc.ia Autosacchetti di Gorizia dall' 1/1/94 al 20/5/94`, 4 June 1994 (SEVO, AG 000865); internal memo *: 'Attività di vendita della Conc. ia Autosalone Catullo di Trieste dal 16/2/94 al 20/5/94`, 4 June 1994 (SEVO, AG 000867).

(45) See for example internal memo *: Visita alla Conc. a NECKER di Milano/MI - controllo dell'attività di vendita, 17 December 1993 (SEVO, AG 000223); internal memo, Attività di vendita della Concessionaria Dorigoni di Trento, 17 December 1993 (SEVO, AG 000480).

(46) Letter to Audi, Attività di vendita in Paesi esteri, 4 October 1993 (Autogerma, AG 000840).

(47) Report, Besuch bei Autogerma, 10 February 1995 (Audi, see footnote 42).

(48) Letter to Volkswagen, Measures to control and prevent re-export, 26 September 1994 (Autogerma, see footnote 15).

(49) Internal memo, Ergänzung zur Rücksprache 027 vom 19.7.94, 12 September 1994 (Volkswagen, see footnote 71); memo Maßnahmen durch Autogerma zur Vermeidung von Re-Exporten, 6 February 1995 (Volkswagen, see footnote 16).

(50) Internal memo, Grauimporte Polo, 7 February 1995 (Volkswagen, VW-DB B 25); internal memo, Abmahnaktion gegen Reimporteure, 13 January 1995 (Volkswagen, AU-GK E 1); Marketingplan Deutschland 1995, Volkswagen Pkw, 10 January 1995 (Volkswagen, VW-SD S1 and S2); handwritten memo, Verkauf an europäische Privatkunden und 'echte` Vermittler, 4 July 1995 (Volkswagen, VW-KH K-37); the extract from this memo quoted in recital 161 translates as follows:

'caution: withdrawal of the Block Exemption Regulation possible!` and the extract in recital 162 as follows: 'For political reasons oil will have to be poured on troubled waters.`

(51) Presentation, Vorlage zur Vorstandssitzung am 13.2.1995: Enleitung von Maßnahmen gegen den Graumarkt/Grauimportmarkt; 9 February 1995 (Audi, AU-MW 1); fax, Beschluß des Vorstands Audi am 13.2.1995, 20 February 1995 (Audi, AU-VE C D 79); extract from minutes, 6/95, meeting of the management board 13 February 1995, Einleitung von Maßnahmen gegen den Graumarkt/Grauimportmarkt (Audi, AU-KS C).

(52) Circular to dealers, Graumarkt, 20 January 1995 (Audi, AU-KS B 14); memo, Information über Händleranschreiben, 23 January 1995 (Audi, AU-VE G D 87).

(53) Circular to importers, Graumarkt/Reimport, 6 February 1995 (Audi, AU-VE G D 27); letter to Autogerma, Graumarkt/Reimport, 15 March 1995 (Audi, AU-VE G D 72).

(54) See for example memo, Projektbeschreibung: Bekämpfung Graumarkt/Reimporte, 14 December 1994 (Audi, AU-VE C D 49).

(55) Presentation, Vorlage zur Vorstandssitzung am 13.2.1995, 9 February 1995 (Audi, AU-KS C 12); memo, Graumarkt, undated (Audi, AU-KS B 10).

(56) See for example memo, Bereich Graumarkt Analyse/Unterbindung Reimporte/Graumarkt, 4 October 1995 (Audi, AU-VE D 128); internal memo, Sachbearbeiter Graumarkt, 9 February 1995 (Audi, AU-VE D 103); memo, Projektbeschreibung Graumarkt/Reimporte, 14 December 1994 (Audi, AU-VE D 130).

The extract from this memo quoted in recital 166 translates as follows:

'Project description: measures to combat grey market/reimports

Tasks and objectives

1. Combating reimports

- supply into Germany,

- illegal exports from Germany,

- other countries of the European Union.

2. Prevention of supply to unauthorised dealers. . .`.

(57) Presentation, Vorlage zur Vorstandssitzung am 13.2.1995, 9 February 1995 (Audi, AU-KS C 12); the extract quoted in recital 167 translates as follows:

'2. Initial position

Reimports are divided into

(a) cross-purchases abroad by German authorised dealers

(b) supplies to dealers outside the organsiation (=grey market dealers) . . .`

(58) Handwritten memo, undated (annexed to another memo, Stand Maßnahmen gegen Graumarkt, 25. 11. 1994) (Audi, AU-VE C D 71).

(59) Minutes of departmental meeting, Maßnahmen gegen Graumarkt/Reimporte, 3 February 1995 (Audi, AU-KS B 11); presentation, Vorlage zur Vorstandssitzung am 13.2.1995, 9 February 1995 (Audi, see footnote 57).

(60) See for example memo, Re-Import, 29 September 1994 (Audi, AU-KS B 15).

(61) See for example letter to Volkswagen, Measures to control and prevent re-export, 26 September 1994 (Autogerma, see footnote 15).

(62) See for example letter * to Baldan Auto, Attività di vendita organizzata fuori del territorio contrattuale, 20 October 1993 (Autogerma, AG 000293); letter * to Silemotori Negro, Attività di vendita organizzata fuori del territorio contrattuale, 9 March 1994 (Autogerma, AG 000296); letter to Audi, Export aus Italien, 13 June 1994 (Autogerma, AG 000852); the extract from this last letter quoted in recital 118 translates as follows:

'Although the delivery times for the Audi 80, which were up to eight months, have been reduced considerably, the dealers are still being rationed. A dealer who orders too many Audi 80s will not receive them . . .`

and the extract quoted in recital 171 translates as follows:

'Autogerma has repeatedly cautioned these dealers to do business only on the Italian domestic market. Indeed two dealers have had their contracts terminated . . .`.

Letter to Fantini and others, Vendite fuori zona, 6 March 1995 (Eurocar, EU-GV 249): 'sono assolutamente vietate le vendite all'estero (anche di quelle vetture preventivamente immatricolate in Italia)` (sales to foreign countries are strictly prohibited) (even where the vehicle is first registered in Italy)); the extract from this letter quoted in recital 127 translates as follows:

'We have already had occasion to speak to you on the delicate question of sales outside the dealer's area. As Autogerma no longer intends to tolerate excessive sales activities outside dealers' own areas of responsibility, we would like to make the following clear: sales to foreign countries are strictly prohibited (even where the vehicle is first registered in Italy); all sales outside the dealer's area of responsibility exceeding 15 % of the dealer's own deliveries will be penalised.`

(63) Record, Compte rendu de l'inspection menée chez les revendeurs de Bolzano, Trento et Silandro, October 1995 (Commission).

(64) See for example letters * to Brenner Garage: Attività di vendita organizzata fuori del territorio contrattuale, 20 October 1993 and 15 November 1993 (Autogerma, AG 000724 und 000723); the extract from the letter of 15 November 1993 quoted in recital 175 translates as follows:

'Subject: Organised sales activities outside contract territory

We refer to our earlier letter on the same subject, ref. ORG/EP/cb of 20 October 1993.

We are somewhat puzzled to see that you have not yet replied to what was said in our letter, which in our view is extremely important, and vital to a correct approach to your firm's sales activity.

We would remind you that a failure on your part to reply, and thus a failure on your part to confirm that you will discontinue any organised sales activity outside the contract territory entrusted to your responsibility, will have the consequences spelt out in the second-last paragraph in our earlier letter.

In the expectation of a reply confirming your acceptance of the rules referred to . . .`;

separate letters to Autocommerciale SpA., Beikircher srl., and F.lli Zicari SpA., Attività di vendita organizzata fuori del territorio contrattuale, 20 October 1993 (Autogerma, AG 000289, 000294, 000838); separate letters to Dr. Guy Beretich SpA., F.lli Negro srl., Walter Bonazzi, Attività di vendita organizzata fuori del territorio contrattuale, 26 November 1993 (Autogerma, AG 000287, 000631, 000836); letter to Brenner Garage SpA.-AG: Attività di vendita organizzata fuori del territorio contrattuale, 29 November 1993 (Autogerma, AG 000721); separate letters to Silvano IOB& C. srl. and Eurocar SpA., Attività di vendita organizzata fuori del territorio contrattuale, 9 March 1994 (Autogerma, AG 000285, EU 182); letter to Bemi Auto srl., Attività di vendita organizzata fuori del territorio contrattuale, 4 May 1994 (Autogerma, AG 000503); letter to Di Viesto SpA., Attività di vendita organizzata fuori del territorio contrattuale, 18 July 1995 (Autogerma, AG 000502).

(65) Letter to Volkswagen, Parallelexporte, 14 June 1994 (Autogerma, AG 000665 und 000666); letter to 50 dealers, Attività di vendita organizzata fuori del territorio contrattuale con diffida a cessare immediatemente l'attività stessa, 20 October 1993 (Autogerma, see footnote 64), in conjunction with memo, Elenco Concessionari cui è stata inviata la lettera con ogetto 'Attività di vendita . . .`, 24 November 1993 (Autogerma, AG 000975) and memo, Elenco Concessionari . . ., 11 March 1994 (Autogerma, see footnote 62); letter to 20 dealers, Vendita al di fuori del territorio contrattuale, 24 February 1995 (Autogerma, AG 000263) in conjunction with memo, Elenco Concessionari ai quali è stata inviata lettera del 24.2.1995 per vendita fuori dal territorio contrattuale, 23 February 1995 (Autogerma, AG 000261).

(66) Circular to dealers, Relazione su Riunioni 20.1.1995, 21 January 1995 (UCAV, DO-SG 80 to 84); the quotation in recital 174 translates: 'None of these cars may be sold outside Autogerma's area of responsibility . . .`.

(67) Original Italian minutes Verbale della riunione del gruppo di lavoro marketing UCAV - Autogerma del 27.7.1994, (Autogerma, see footnote 97), German version Protokoll der Sitzung der Arbeitsgruppe Marketing UCAV - Autogerma/27.7.1994. The extract quoted in rectial 173 translates as follows:

. . . (page 2)

'Scarabel:

said that special rebates for sales outside the contract territory had been withheld in the case of some dealers who would be legally entitled to demand payment, at least in theory. He stressed the need for a fresh discussion of the 15 % quota for tolerated sales outside the contract territory.

Dr. Schlesinger:

. . . The special rebate was just a supplementary rebate, something over and above what was customary. It had been operated very generously, and if now about 20 dealers out of 234 had not received this special rebate, the reason was that it was not intended as a reward for wholesalers or exporters. In the past we turned a blind eye, but now we are inclined to refuse the special rebate for sales outside the contract territory, as it is given on the basis of registrations rather than deliveries.

(page 4)

Dr. Schlesinger:

asked the UCAV to sensitise the base to a good launch for the new Polo (restricted grant of rebates, no exports). . .`.

The warning was expressly confirmed in letter to Volkswagen, Measures to control and prevent re-export, 26 September 1994 (AG, see footnote 15).

(68) Various circulars to dealers in 1993, Regolamento CEE 123/85, 28 January 1993, 1 July 1993, 11 August 1993 *, and 12 October 1993 * (Autogerma, AG 000106, 000094, 000977 and 000978, 000080); circular to dealers: Regolamento CEE 123/85 Distribuzione selettiva dei veicoli, 16 March 1995 (Autogerma, EU-1 to 3), memo, Measures to control and prevent re-export, 15 March 1995 (Autogerma, AG 000620).

(69) See for example memo, esportazioni parallele, 2 May 1995 (Autogerma, AG 000282).

(70) Record of conversation, Collaquio con S.Engmann/Audi, 22 September 1995 (Autogerma, AG 000001); internal memo, Reimporte Italien, 9 May 1995 (Volkswagen, AU-VE D 23); the extract from this memo quoted in recital 165 translates as follows:

'. . .The enclosed letter from the European Commission shows that they are not satsfied with our letter of 30 March 1995 or Autogerma's recent circular. The circular must be put into practice if we are not to run a high risk of being fined. . .`.

(71) Internal memo, . . . Ergebnis aus den Maßnahmen zur Unterbindung von Re-Export-Aktivitäten, 12 September 1994 (Volkswagen, VW-UD PC Piening).

(72) See for example e-mail message ** to Audi, Grey market/Measures to control and prevent re-export, 23 September 1994 (Autogerma, AG 000880 and 000881); (handwritten) internal memo, Riesportazioni dall'Italia alla Germania, undated (Autogerma, AG 000498).

(73) Evidence for example in e-mail message *, Visita Bothe, 22 March 1995 (Autogerma, AG 000388).

(74) See the documents referred to in footnotes 15, 42, 43 and 102 and marked ** or *.

(75) See the documents referred to in footnotes 73, 78, 80, 87, 96 and 97 and marked *.

(76) See the documents referred to in footnotes 44, 45, 62 and 64 and marked *.

(77) See the documents referred to in footnotes 123 and 126 and marked *.

(78) Internal memo *, Condizioni di fornitura per i veicoli Audi A 4 e Volkswagen Polo, 6 October 1994 (Autogerma, AG 000026 and 000027); circular to dealers, Fatturazione Nuova Polo, 20 October and 2 November 1994 (Autogerma, VW-KH K-6 and 7, see also footnote 85).

(79) Letter to Volkswagen, Fakturierung des neuen Polo und Einführung des 'Split-Margin`, 24 October 1994, and circular to dealers, Fatturazione Nuova Polo, 20 October 1994 (Autogerma, VW-SR R 13).

(80) Internal memo *, Reimporte Italien, 23 February 1995 (Volkswagen, VW-SR R 21).

(81) Memo, Maßnahmen zur Reduzierung von Grauexporten (VW PkW-Italien), 6 April 1995 (Volkswagen, VW-DB B 7 Sekr. Santelmann, file 'Re-Importe`, or Volkswagen, VW-DB B 16), and especially memo, Maßnahmen zur Reduzierung von Grauexporten (VW PkW-Italien), 21 August 1995 (Volkswagen, VW-SR R 18); both documents include the points 'Splitting der Händlermarge beim Polo` (splitting of the dealer's margin for the Polo) and 'Bonuszahlungen in Abhängigkeit vom Bestimmungsort des Fahrzeugs (aber: mit neuer GVO nicht vereinbar)` (bonus payments dependent on place of destination of vehicle (but: not compatible with new block exemption)).

(82) Memo, Stand Maßnahmen gegen Graumarkt, 25.11.1994 (Audi, AU-VE D 26); the extract quoted in recital 119 translates as follows:

'. . . deliveries are being regulated in such a way that only Italian demand is being met. . .`.

(83) Annex to dealership contract, Allegato 'A` al Contratto di Concessione Autogerma - Prodotti Volkswagen e Audi, 31 December 1991 (Autogerma, BR 33 to 44); Eurocar's dealership contract, Contratto di Concessione per la Vendita e il Servizio di Assistenza, 30 December 1987 (Autogerma/Eurocar, EU 55-113).

(84) Agreement, Convenzione aggiunta al Contratto di Concessione Autogerma - Prodotti Volkswagen e Audi, 28 December 1993 (Autogerma, DO 26 to 32).

(85) Circular to dealers, Fatturazione Nuova Polo, 20 October 1994 (Autogerma, BR-MF 229) and 2 November 1994 (Autogerma, BR-MF 231); see also the negotiations between the dealers's association and Autogerma, Riunione Consiglio Direttivo UCAV., 27 February 1995 (UCAV, EU 48, 49 and 51) and Riunione UCAV./Autogerma, 27 February 1995 (UCAV, EU 54, 56 and 57). The extract from the circular of 20 October 1994 which is quoted in recital 122 translates as follows:

>TABLE>

That said, in order to identify valid solutions, of vital interest to us and the whole organisation, to problems which have arisen repeatedly and have sometimes led some firms into behaviour which is not in line with our mutual interest (such as sales through unauthorised dealers, unjustified and excessive discounts, sales outside the dealer's territory, and the like), there has been discussion, together with the president, vice-presidents and some members of the council of UCAV, who were in Verona on Tuesday 18 October for the meeting of the ISC working party, of a new structure for discounts on the New Polo, made up as follows:

>TABLE>

The short-term deferred discount referred to at point (b) will be given shortly after the sale, and will be based specifically on the mutual commitment of ourselves and every Autogerma authorised dealer to look after the contract territory in which both Autogerma and the dealer are responsible for general approach, marketing, and sales, and for the obligation to make strenuous efforts jointly to attend to the needs of the final consumers resident in the territory.

It remains to be decided whether it is advisable, that is to say whether it is in the interests of all of us, to alter the present 15 % authorisation for out-of-territory sales, either upward or downward.

Your UCAV area delegates will be contacting you shortly to discuss this matter, and to hear any thoughts, suggestions and improvements.

They will then consult us urgently so that Autogerma can take a final decision`.

(86) Record, Vérification du 23 et 24 octobre 1995 en Italie/Mutschlechner KG, Bruneck, 26 October 1995 (Commission).

(87) See for example internal memo *, Condizioni di fornitura per i veicoli Audi A4 e Volkswagen Polo, 6 October 1994 (Autogerma, see footnote 78); report, Stand Maßnahmen gegen Graumarkt, 12 October 1994 (Autogerma, AU-VE G D 51); letter to Audi, Splitmargensystem - Audi A4, 10 November 1994 (Autogerma, AG 000661).

(88) Internal memo, Condizioni di fornitura per i veicoli Audi A4 e Volkswagen Polo, 6 October 1994 (Autogerma, see footnote 78).

(89) Letter to Audi, Splitmargensystem - Audi A4, 10 November 1994 (Autogerma, see footnote 87).

(90) Report, Besuch bei Autogerma am 12.10.1994, Stand Maßnahmen gegen Graumarkt (Audi, AG 000895); memo, Stand Maßnahmen gegen Graumarkt, 8.11.1994, 14 November 1994 (Audi, AU-VE D 133).

(91) Memo, Reimporte Italien, 24 March 1995 (Volkswagen, VW-KH K-16 and 17); memo, Eingeleitete Maßnahmen durch Autogerma zur Vermeidung von Re-Exporten, verursacht durch Wiederverkäufer, 22 November 1994 (Volkswagen, VW-KH K-55 HDK file 'Re-Exporte`).

(92) Circular to dealers, Graumarkt; Margensystem in Italien, 8 December 1994 (Audi, AU-DH C).

(93) Memo, Grauimporte Italien, 23 November 1994 (Audi, AU-VE D 131); the extract from this memo quoted in recital 138 translates as follows:

'. . . I enclose Mr Schlesinger's written confirmation of the supplementary measures (split margins) to prevent grey imports.

This means that a dealer engaging in grey imports loses the 5 % split margin component plus the 3 % bonus, equivalent to a further price increase of 8 %.

The dealers' acceptance of this split margin means that the majority of dealers are prepared to prevent grey imports, because the distribution costs on the sale of a car amount to more than 10 %.

The dealer would very quickly have a negative cash flow for every car. . .`.

(94) Annex to dealership contract, Convenzione 'B` aggiunta al Contratto di Concessione Autogerma - Prodotti Audi e Volkswagen, 30 December 1987 (Autogerma/Brenner Garage, BR 168 to 171); Annex to dealership contract, Convenzione 'B` aggiunta al Contratto di Concessione Autogerma, 28 April 1994 (Autogerma, BR-MF 160 to 167).

(95) Memo, Measures to control and prevent re-export, 15 March 1995 (Autogerma, see footnote 18); e-mail message to Audi, Grey market/Measures to control and prevent re-export, 23 September 1994 (Autogerma, see footnote 72).

(96) Letter to Volkswagen and Audi, Parallelexporte, 14 June 1994 (Autogerma, AU-VE C D 53); memo, Measures to control and prevent re-export, 15 March 1995 (Autogerma, see footnote 18); various letters * to dealers, for example to Eurocar, Maggior sconto su consegne autoveicoli Volkswagen Audi, 18 October 1994 (Autogerma, EU-GV 224) and 8 June 1994 (EU-GV 222 ); to Brenner Garage, Maggior sconto su consegne autoveicoli Volkswagen Audi, 8 June 1994 (Autogerma, BR-MF 228) and 31 January 1994 (Autogerma, AG 000713); letter to Autogerma, Maggior sconto consegne autoveicoli III/ quadr. 93 - Concess. Ancona, 25 January 1994 (Bonazzi, AG 000013); letter to Bonazzi, Maggio sconto su consegne autoveicoli Volkswagen Audi 3/ quadr. '93, 15 March 1994 (Autogerma, AG 000014).

(97) Memo *: Elenco nostro fatturato ai Concessionari: totale 1993 e 01/01-30/06/1994, 4 July 1994 (Autogerma, AG 000029); internal memo, Non riconoscimento/trattenuta del Maggior Sconto per vendite fuori zona (compreso esportazioni parallele), 28 June 1994 (Autogerma, AG 000499); internal memo, Verbale della Riunione del Gruppo di Lavoro Marketing UCAV. - Autogerma, 27 July 1994 (Autogerma, AG 000023); e-mail message to Audi, Grey market/Measures to control and prevent re-export, 23 September 1994 (Autogerma, see footnote 72). The quotation in recital 172 from the internal memo of 28 June 1994 translates as follows:

'Subject: Non-payment/withholding of the extra bonus for outside-area sales (including parallel exports)

I am writing to confirm what I have already told you verbally, namely that I want every single case of subsequent payment of an extra discount that has been suspended or withheld for out-of-area sales/parallel exports to be submitted to me for approval (initials and date).

This is of vital importance in view of the statistics on sales and registrations published in the press, which apart from anything else put us in a bad light with the public and make it impossible to evaluate the market position precisely.

I would remind you once again that our network must sell our vehicles in Italy (above all in order to "survive") and must not carry on "distribution" activities outside our area.

As you are aware, Autogerma has for a long time been constantly asking its own parent companies for special terms for supplies, prices, special equipment, etc.; we cannot "return the favour" by selling our vehicles abroad.

For any further information please refer to me . . .`.

(98) Annex to dealership contract, Convenzione 'B` aggiunta al Contratto di Concessione Autogerma, 31 December 1994 (Autogerma, AG 000305 und 000306).

(99) Report, Stand Maßnahmen gegen Graumarkt, 12 October 1994 (Autogerma, see footnote 87).

(100) Memo, Verbali Riunioni UCAV. del 27.2.1995, 27 February 1995 (UCAV, EU 48, see footnote 85).

(101) See for example memo, Stand Maßnahmen gegen Graumarkt, 25 November 1994: 'die (seit 18. 10. fakturierte) 5 % Händlermarge, zahlbar alle 2 Monate bei Vorlage der Zulassungsscheine, werden nachträglich weggenommen` (5 % dealer's margins (invoiced since 18 October), payable every two months on presentation of the registration certificates, are being withdrawn retroactively) (Audi, see footnote 58); report, Besuch bei Autogerma am 12.10.1994 (Audi, see footnote 90); report: Stand Maßnahmen gegen den Graumarkt, 8.11.1994, 14 November 1994 (Audi, see footnote 90).

(102) See for example letter to Volkswagen, Parallelexporte, 14 June 1994 (Autogerma, see footnote 96); e-mail message to Volkswagen and Audi, Grey market/Measures to control and prevent re-export, 23 September 1994 (Autogerma, see footnote 72); letter ** to Volkswagen, Measures to control and prevent re-export, 26 September 1994 (Autogerma, AG 000905); memo, Maßnahmen durch Autgerma zur Vermeidung von Re-Exporten, 6 February 1995 (Volkswagen, see footnote 16); memo, Re-Exporte, 1 March 1994 (Volkswagen, VW-SR R 22); the extract from this last letter quoted in recital 131 translates as follows:

'. . . 3. Despite the damage to the price of our products in Italy, the falling lira meant that there was now a considerable price gap with the German and other markets. This situation gave rise to re-exporting, particularly by dealers in the north of Italy (a total of about 17 000 Volkswagen cars to Germany in 1993).

Position: 20 December 1993, Federal Motor Traffic Office registration, Flensburg.

4. Autogerma S.p.A. and Volkswagen AG exercised influence by means of

- dealer audits,

- cautions,

- targeted allocation,

- bonus discounts,

- terminations of contract (three dealers in 1993). This greatly reduced re-exports . . .`.

(103) Letter * to Auto Herbert Pedross, 6 March 1995 (Autogerma, BR-MF 80); letter * to Auto Officina Lanz, Contributo organizzativo per Sub-Concessionario, 6 March 1995 (BR-MF 81).

(104) See for example memo, Reimportsituation, 23 October 1995 (Audi, AU-KS B 4): 'Eingeleitete Maßnahmen . . . Streichung der Restmarge` (Measures introduced . . . cancellation of remainder of margin); memo *: Graumarktbericht, 11 October 1995, in conjunction with Graumarktbericht 9/95, 28 September 1995 (Audi, AU-VE G D 1): 4. Bisherige Maßnahmen und Erfolge, Rückbelastung der zu unrecht erhaltenen Zuschüsse (Measures and successes to date, recovery of undue allowances); the extract from this document quoted in recital 169 translates as follows:

'. . . Private imports of new vehicles by final consumers are growing constantly. It is not possible to distinguish between private imports and imports by unauthorised dealers . . .`

Memo, *: Graumarktbericht, 8 September 1995 in conjunction with Graumarktbericht-Statusbericht, 15 May 1995 (AU-KS B 2): 'Erfolge 4. Konsequente Belieferungssteuerung/Quotierung mit Einführung des Audi A4 - Einführung eines Händlermargensystems in Italien`. (Successes 4. coherent regulation/quotas for Audi A4 imports - introduction of a dealer's margin system in Italy); Situationsbericht Grauimporte K-VSK am 6.4.1995, 5 April 1995 (Audi, AU-KS B 7): 'Auszahlung der Boni an den Händler nur für Italien zugelassene Fahrzeuge` (payment of bonuses to dealers only on vehicles registered in Italy); the extract from this document quoted in recital 168 translates as follows:

'. . . The setting up of an organisational unit in Audi's distribution department to secure a lasting reduction in the grey or reimport market. The objective is long-term protection of the exclusive distribution channel and price and value stability for the products. . .`

(105) Record of discussion, Preisharmonisierung, 30 August 1993 (Volkswagen/Audi, AU-VE D 109); the extract from this record quoted in recital 147 translates as follows:

'. . . the purpose is a concerted, balanced approach on the part of the VW and Audi makes. . .`;

see also Protokoll der 7. Konferenz des Europäischen Händlerbeirats VW/Audi vom 21. bis 23. April 1994 in Dublin, 22 April 1994 (European Dealer Council Volkswagen Audi, WV-KH K-58).

(106) Memo: Maßnahmen zur Begrenzung von Re-Exporten aus Italien, 2 November 1993 (Volkswagen, VW-SR R 23); memo, Gespräch am 14.12.1993 in Wolfsburg Marken AUDI und VW: Preisplanung Italien / EG-Preisharmonisierung, 21 January 1994 (Audi, AU-VE D 502).

(107) Minutes, Besprechung am 22.3.1995 in Wolfsburg, 27 March 1995 (Volkswagen/Audi, VW-SR R 2).

(108) Letter to Audi: Liefersituation Italien, 20 March 1995 (Autogerma, AU-DH C); minutes, Protokoll der Sitzung vom 23.3.1995, 23 March 1995 (Audi/Autogerma, AU-DH C); letter to Audi, Stornos Situation Italien, 11 May 1995 (Autogerma, AG 000267).

(109) Memo, Lieferung von weiteren 8 000 Fahrzeugen für den italienischen Markt, 6 February 1995 (Audi, AU-VE G D 82); the extract from this memo quoted in recital 141 translates as follows:

'Supply of a further 8 000 vehicles for the Italian market

The Italian dealers have asked for another 8 000 Audi A 4 1995s to be supplied in Italy. It is claimed that Autogerma has already made them a promise to this effect.

It was originally planned that the Italian market should be supplied restrictively and on the basis of the market. The promise of a further 8 000 cars puts the Italian dealers in a position to make preparations for the re-export of Audi A4s even at this stage, and to make commitments to independent importers and dealers. Efforts to sell the vehicles originally promised on the market might be neglected.

In order to give a signal in Italy that the restricted market-based system of supply that you announced is being maintained, the importer should be informed at once of the departmental meeting's agreement that the 8 000 vehicles requested will not be supplied.

Please inform Autogerma of this decision immediately, and see to it that the Italian dealers are informed accordingly too. . . `.

Minutes of departmental meeting, Maßnahmen, 3 February 1995 (Audi, see footnote 59).

(110) Memo: Situationsbericht Grauimporte, 4 April 1995 (Audi, AU-VE D 151) or memo: Status report MI-11/Vertrieb Inland: Grey-market, 7 April 1995 (Audi, AU-VE D 150); confirmed in memo: Graumarktbericht, 8 September 1995 (Audi, see footnote 104).

(111) Letter (fax) to Audi, Volumen Italien 1995, 29 September 1995 (Autogerma, AU); letter (fax) to Audi, Sales volume for Italy, 1995, with handwritten memo, 6 October 1995 (Autogerma, AU-MW 3.1 4).

(112) Letter to Volkswagen, Reimporte, 26 November 1993 (Autohaus Stadtberg, AG 000848); letter to Audi, 11 February 1994 (Walter Bechheim, Autohaus, AU-GK D 3).

(113) Letter to Autohaus Stadtberg, Reimporte, 7 December 1993 (Volkswagen, AG 000847, see footnote 112); see also Rede von Herrn Knief zur Plenum-Veranstaltung mit Herrn Dr Piëch anläßlich des Europa-Kongresses am 8. September 1993 in Frankfurt (Volkswagen, VW-KH K-61).

(114) Report, Händlermeinung zu den Vertriebsaktivitäten von Audi, 28 January 1994 (Audi, AU-GK D 4).

(115) Faxes to Audi, Information, 4 April and 15 May 1995 (Auto-Reichart, AU-VE C D 69).

(116) Fax to Audi, Deutsche Audi Händler interessiert an Parallelimporte, 5 October 1994 (Autogerma, AU-MW D 26); Rede von Herrn Knief zur Plenum-Veranstaltung mit Herrn Dr. Piëch anläßlich des Europa-Kongresses am 8. September 1993 in Frankfurt (Volkswagen, see footnote 113).

(117) See for example fax to Autohaus Müller, Autokauf in Italien, 11 September 1995 (Autogerma, AG 000547).

(118) Report, Händlermeinung (Audi, see footnote 114).

(119) Fax to Volkswagen, Elenco Concessionari, 24 November 1993 (Autogerma, AG 000973 to 000975).

(120) See for example letter to Negro, Vendita al di fuori del territorio contrattuale, 24 February 1995 (Autogerma, see footnote 65); letter to Muzzatti, Vendite organizzate fuori territorio contrattuale - Audi A8, 12 October 1994 (Autogerma, AG 000651).

(121) Letter to Volkswagen, grey market, 7 June 1994 1994 (Autogerma, AG 000851).

(122) E-mail message, Eccel, 29 May 1994 (Autogerma, AG 000795).

(123) E-mail message * to Volkswagen, Kuendigungen, 6 February 1995 (Autogerma, VW-KH K 52), and fax * to Volkswagen, Maßnahmenprogramm, 10 February 1995 (Autogerma, VW-SR R 12).

(124) Memo: Graumimporte aus Italien, 20 February 1995 (Volkswagen, VW-SR R 17); internally, however, 'grey exports` were often the main ground of termination cited, for example in the cases of Conti, Beretich and Autosial memo to Volkswagen, grey market, 7 June 1994 (Autogerma, see footnote 121).

(125) Report: Besuch bei Autogerma, 10 February 1995 (Audi, AG 000039); handwritten note on e-mail message, Italien, 17 March 1995 (Volkswagen, VW-SR R 13).

(126) Letter *: to Eurocar, Risoluzione Contratto di Concessione Volkswagen e Audi, 15 September 1995 (Autogerma, EU-GV 54).

(127) Circular to dealers: Regolamento CEE 123/85 Accordi distribuzione autoveicoli, 15 October 1993 (Autogerma, AG 000078).

(128) Circular to dealers: Regolamento CEE 123/85 Distribuzione selettiva dei veicoli, 16 March 1995 1995 (Autogerma, VW-SR R 15; various contracts of sale, for example Wimschneider, 2 March 1994 (Iob Silvano & C.Srl); Ebenberger, 27 January 1995 (Iob Silvano & C.Srl, SI-GV A 211); Osina, 2 June 1995 (Iob Silvano & C.Srl, SI-CM A 57); Prieler, 16 August 1995 (Iob Silvano & C.Srl, SI-CM A 50).

(129) Letter to Autogerma, Graumarkt/Reimport, 15 March 1995 (Audi, AG 000632).

(130) Fax to Audi, 3 April 1995 (Petersen, AU-KS B 8); the extract translates as follows: '. . . I was constantly being told by the dealers there that they would be happy to sell to me but that they would not get a car from the importer if the buyer was a German.`

(131) Letter to Commission, DG IV, Beschwerde, 27 April 1995 (Bernhard, AG 000343 and 000344); the extract translates as follows:

'. . . The boss told me on the telephone that as I was German he would not be allowed to sell me a car (a decision of Volkswagen AG)`.

(132) Letter (fax) to Volkswagen: Exportverbot Hier: Italien, 27 April 1995 (Lenz, VW-KH K-32); the extract translates as follows:

'. . . at three VW dealerships I was told that the export of any vehicles whatsoever was not allowed, and that they had to comply strictly with this rule. Some dealers had already had their concessions withdrawn for failure to observe it`.

(133) Letter to Autogerma, 23 June 1995 (Schneider, AG 000444).

(134) Letter to Volkswagen, 19 July 1995 (Mosser, AU-KS A 1); the extract translates as follows:

'I was told in each case that the garage had been prohibited by Audi's main agents from selling the cars to foreigners`.

(135) Letter to Audi: Audi A4, 3 August 1995 (Bilogan, AU-VE G D 10); the extract translates as follows:

'. . . that the Italian dealers could not sell anything to persons from the Federal Republic of Germany and Austria, allegedly because of an instruction from the manufacturer`.

(136) Letter to Volkswagen, Reimport von Polo und Audi A4, August 1995 (Albrecht, AG 000566 and 000567); the extract translates as follows:

'. . . We were told that as we were Germans we would not be able to get any of these models, on instructions from Wolfsburg`.

(137) Letter to Audi, Bestellung eines Audi A6 in Italien, 18 May 1995 (Baur, AU-VE G D 8); the extract translates as follows:

'The answer was always the same, namely that they could expect reprisals on the part of the main importer if they sold even one car to a buyer in Austria`.

(138) Letter to Volkswagen, Ankauf eines KFZ in Italien, 23 May 1995 (Gatt Autoreisen, AG 000597 to 000599); the extract translates as follows:

'I have been told by various Italian VW/Audi dealers I have contacted in the last few months that the VW/Audi group does not allow them to sell vehicles to buyers in Austria`.

(139) Letter to Volkswagen, VW-Vento aus Reimport, 24 August 1995 (Bilogan, AG 000434); The extract translates as follows:

'I was everywhere told, with a slight edge to the voice, that there was no possibility of selling to customers from Germany. Sometimes I was told other things too`.

(140) Letter to Autogerma, Letzte Anfrage, 8 September 1995 (Autohaus Jungmann, AG 000691 to 000697); the extract translates as follows:

'As soon as we tell the dealers that these vehicles are intended for private individuals in Germany or Austria, and that we will gladly show them an intermediary's or purchase order with a signature authenticated by a notary, the dealers refuse to discuss the matter any further; or reply that that they do not know anything about what Audi in Ingolstadt in Germany says, but that their main importer Autogerma has imposed an absolute ban on exports, even to private customers; or that about a month beforehand the Austrian Automobile Club ÖMTC tried to buy cars of their make in the north of Italy for final customers, and even they had not had a single vehicle from the dealer`.

(141) Letter to Autogerma, 8 September 1995 (Hülsdünker, AG 000527). The extract translates as follows:

'He told me that he had instructions from the management of Auto Brenner not to send out the contract of sale until he had express confirmation in writing from them that Mrs. . . was allowed to buy a vehicle`.

(142) Various letters to Autogerma, for example Vendita al di fuori del territorio contrattuale, 6 March 1995 (Negro, AG 000016); Attività di vendita organizzata fuori del territorio contrattuale, 22 November 1993 (Brenner Garage, AG 000722); Vs. rif. ORG/EP/cb int. n/320 del 20.10.1993, 2 November 1993 (Auto quattro, AG 000290); Attività di vendita, 29 October 1993 (Mandolini, AG 000668); Attività di vendita organizzata fuori dal territorio contrattuale, 15 March 1993 (Iob Silvano, AG 000284).

(143) For examples of applications for authorisation see letter to Autogerma, Fornitura Volkswagen Passat-Sig. Hampel Thomas, 22 June 1995 (Dorigoni, AG 000468); letter to Autogerma, Audi 80 Avant 1.6. 19 December 1994 (Brenner Garage, AG 000707); memo, Oggetto: Colloquio con Sig. Beikircher.-BZ., 21 October 1994 (Autogerma, AG-RG 000650).

(144) Letter to Autogerma, Audi A8 PRAT.AG 612845/94, 5 September 1994 (Muzzatti, AG 000649); the extract quoted here translates as follows:

'We are doing everything possible to have the car brought back to Italy, and to convince the customer to cancel the registration. We are extremely sorry that this sale has caused you such unfortunate difficulties with the manufacturer`.

(145) Various letters to customers, for example to Aue, 9 March 1995 (Dorigoni, DO-MF 14); Nowak, 17 May 1995 (Dorigoni, DO-SG 2); Roederer, 18 May 1995 (Dorigoni, DO-SG 10); Rueß, 18 May 1995 (Dorigoni, DO-MF 8); Kleikamp, 27 June 1995 (Dorigoni, DO-SG 4); Autohaus Nordstadt, 22 August 1995 (Dorigoni, DO-MF 6); Gerson, 6 October 1995 (Dorigoni, DO-SG 16).

(146) Letter to Deeg, 6 May 1995 (Dorigoni, DO-SG 12).

(147) See for example various letters to customers between July and October 1995 (Auto Brenner, Nos 40, 7, 47, 30, 9, 13, 45, 26, 6, 51, 20, 23, 10, 27, 29, 19, 5, 18, 32, 17, 3, 53, 36, 12, 43, 34, 38, 16, 25, 24, 55, 15, 8, 4, 28, 2, 11, 21, 49, 14); the extract quoted here translates as follows:

'As we receive only a limited quota of vehicles (VW-Audi) from the works, delivery times are long, over a year long in some cases. Prices change regularly and the purchase price consequently cannot be guaranteed. For these reasons you will probably decide not to buy your vehicle from us`.

(148) E-mail message to Audi: Neuwagenverkauf an ausländische Kunden, 18 May 1995 (Autogerma, AU-DH A 2); the extract quoted here translates as follows:

'. . . As you will see from the monthly sales statistics in your possession, there has been an enormous drop in sales of new Audi cars to foreign buyers. . . We find that dealers are quoting delivery times on the basis of their quotas, and serving their traditional clientele`.

(149) Letter to Autogerma, Fahrzeugverkauf an EG-Bürger/Endabnehmer, 19 July 1995 (Audi, AG 000336); the extract quoted here translates as follows:

'Unfortunately many Italian dealers are still telling customers that the manufacturer or the importer has prohibited them from selling vehicles to foreign final consumers`.

(150) Joined Cases 25 and 26/84 Ford-Werke AG and Ford of Europe Inc. v. Commission [ 1985 ] ECR, p. 2725 and Case C-70/93 Bayerische Motorenwerke AG v. ALD Auto-Leasing D GmbH [1995] ECR I-3439.

(151) Case 107/82 Allgemeine Elektricitäts-Gesellschaft AEG-Telefunken AG v. Commission [1983] ECR p. 3151.

(152) See footnote 150.

(153) Commission Decision 82/367/EEC (Hasselblad), OJ L 161, 12.6.1982, p. 18, recital 47.

(154) Commission Decision 85/617/EEC (Sperry New Holland), OJ L 376, 31.12.1985, p. 21, recitals 54 and 55.

(155) Commission Decision 84/405/EEC (Zinc Producer Group), OJ L 220, 17.8.1984, p. 27, recital 71; Commission Decision 85/79/EEC (John Deere), OJ L 35, 7.2.1985, p. 58, recital 26.

(156) Commission Decisions 84/405/EEC and 85/79/EEC, see footnote 155.

(157) Commission Decision 73/322/EEC (Deutsche Philips), OJ L 293, 20.10.1973, p. 40; judgment of the Court of Justice in Case 86/82 Hasselblad (GB) v. Commission [1984] ECR p. 883.

(158) See Commission Decision 82/367/EEC (see footnote 153).

(159) Case 319/82 Société de Vente de Ciments et Bétons de l'Est SA v. Kerpen & Kerpen GmbH & Co. KG [1983] ECR, p. 4173.

(160) See footnote 13.

(161) See footnote 13.

(162) Case T-9/92 Peugeot v. Commission [1993] ECR II-493.

(163) Letter to the Commission: Attorney's privilege hinsichtlich der Nachprüfung K(95) 2476/17, (Attorney's privilege with regard to investigation K(95) 2476/17), 2.11.1995 (Audi).

(164) Case 155/79 AM & S Europe v. Commission [1982] ECR 1575.

(165) See footnote 151.

(166) ECJ 11 July 1989 S. C. Belasco et al. v. Commission RS 246/86, Rec. 1989, p. 2181, 2191, point 41.

(167) COM(95) 503 final of 31 October 1995.