Nv L’Oreal And Sa L’Oreal v Pvba De Nieuwe Amck: ECJ 11 Dec 1980

ECJ The agreements laying down a selective distribution system based on criteria for admission which go beyond a mere objective selection of a qualitative nature exhibit features making them incompatible with article 85(1) of the EEC treaty where such agreements, either individually or together with others, may, in the economic and legal context in which they occur and on the basis of a set of objective factors of law or of fact, affect trade between member states and have either as their objective or effect the prevention, restriction or distortion of competition. It is for the commission alone, subject to review by the court, to grant an exemption in respect of such agreements under article 85(3).
A letter signed by an official of the commission indicating that there is no reason for the commission to take action pursuant to article 85(1) of the EEC treaty against a distribution system which has been notified to it, may not be relied upon as against third parties and is not binding on the national courts. It merely constitutes an element of fact of which the national courts may take account in considering the compatibility of the system in question with community law.
Decisions to grant exemption under articles 85(3) of the EEC treaty give rise to rights in the sense that the parties to an agreement which has been the subject of such a decision may rely on that decision as against third parties who claim that the agreement is void on the basis of article 85(2).
The behaviour of an undertaking may be considered as an abuse of a dominant position within the meaning of article 86 of the treaty where the undertaking enjoys in a particular market the power to behave to an appreciable extent independently of its competitors, its customers and the consumers and where its behaviour on that market, through recourse to methods different from those which condition normal competition on the basis of the transactions of traders, hinders the maintenance or development of competition and may effect trade between member states.

R-31/80, [1980] EUECJ R-31/80, [1980] ECR 3775
Bailii
European
Cited by:
CitedInntrepreneur Pub Company (CPC) and others v Crehan HL 19-Jul-2006
The tenant had taken on pub leases with ties requiring him to buy beer from companies associated with the landlords. The European Commission had issued a decision and the House was asked whether this was binding on the parties.
Held: . .

Lists of cited by and citing cases may be incomplete.

Commercial

Updated: 20 December 2021; Ref: scu.214956