Italian Republic v Council of the European Economic Community and Commission of the European Economic Community (Judgment): ECJ 13 Jul 1966

Europa 1. Policy of the EEC – rules on competition applicable to undertakings – regulations to be adopted by the council – discretionary powers of the latter – scope (EEC treaty, article 87) 2. Policy of the EEC – rules on competition applicable to undertakings – agreements – prohibition – exemption for categories of agreements – no pre-conceived judgment thereby passed on these agreements (EEC treaty, article 85) 3. Policy of the EEC – rules on competition applicable to undertakings – articles 85 and 86 of the EEC treaty – no distinction in these provisions based on the levels of the undertakings in the economy 4. Policy of the EEC – rules of competition applicable to undertakings – competition – concept (EEC treaty, article 85) 5. Policy of the EEC – rules of competition applicable to undertakings – exclusive dealing agreements – prohibition under article 85(1) of the EEC treaty possible 6. Regulations of the EEC – plea of inapplicability – may only be raised when the regulation in question is applicable to the issue with which the application is concerned (EEC treaty, article 184) 1. On questions of competition the council of the EEC may decide whether a particular regulation is appropriate and adopt it on the basis of a specific principle contained in articles 85 and 86 of the EEC treaty. There is no obligation on it to deal exhaustively with all the principles set out in these articles nor is it required to adopt rules simultaneously for applying the other provisions of the said articles. 2. To define a category of agreements is only to make a classification, and means only that the agreements which come within it may be prohibited by article 85(1). Therefore to grant exemptions under article 85(3) by categories of agreements cannot amount, even by implication, to passing any pre-conceived judgment on any agreement considered individually. 3. Neither the wording of article 85 nor that of article 86 justifies interpreting either of these articles with reference to the level in the economy at which undertakings carry on business. 4. The competition mentioned in article 85(1) means not only any possible competition between the parties to the agreement, but also any possible competition between one of them and third parties. 5. Even if it does not involve an abuse of a dominant position, an exclusive dealing agreement may affect trade between member states and at the same time have as its object or effect the prevention, restriction or distortion of competition, and thus fall under the prohibition in article 85(1). 6. The intention of article 184 of the EEC treaty is not to allow a party to contest at will the applicability of any regulations in support of any application. The regulation of which the legality is called in question must be applicable, directly or indirectly, to the issue with which the application is concerned.

Citations:

C-32/65

European

Updated: 10 April 2022; Ref: scu.131802