# C_2006212EN.01002101.xml

| 2.9.2006 | EN | Official Journal of the European Union | C 212/21 |
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Reference for a preliminary ruling from the Audiencia Provincial de Madrid (Spain) lodged on 27 June 2006 — CEPSA, Estaciones de Servicio SA v LV Tobar e Hijos SL

(Case C-279/06)

(2006/C 212/36)

Language of the case: Spanish

Referring court

Audiencia Provincial de Madrid

Parties to the main proceedings

Applicant: CEPSA, Estaciones de Servicio SA

Defendant: LV Tobar e Hijos SL

Questions referred

| 1 | (a)
Is Article 81(1) EC to be construed as meaning that a exclusive supply contract under a brand name concluded in 1996 by a distributor of petroleum products and the proprietor of a service station requiring the latter to sell exclusively the supplier's motor-vehicle and other fuels for a fixed period, and to undertake not to sell such products supplied by other distributors, falls within the ambit of that provision in so far as that obligation involves a no-competition agreement, even though that contract might, given its commercial significance, be regarded as an agency contract? (b)
If the contract does fall within the ambit of Article 81(1) EC, is it possible to claim the benefit of exemption from the prohibition if it satisfies the requirements of Regulation No 1984/83( 1 ), especially those relating to duration? (c)
If that should be the case, does the fact that Articles 10 and 12 of that regulation permit the duration of the no-competition agreement to exceed five years as consideration for the granting of commercial or financial advantages by the supplier to the service station proprietor, require those commercial or financial advantages to be substantial or is it enough that they are not insignificant? Can those provisions be interpreted as meaning that such commercial or financial advantages have been conferred in exclusive supply contracts under a brand name in which the supplier of petroleum products bears the costs of installing and maintaining its brand image in the service station, or transfers fuel-tanks and -pumps which the service station proprietor may not use without the authorisation in writing of the sole supplier for products not supplied by the latter and which it must hand back when it ceases to use them as authorised, and the value of which is covered by the guarantee on first demand that the service station proprietor has provided in favour of the supplier? (d)
If that exemption should not be applicable, does the automatic nullity provided for by Article 81(2) EC affect the contract in its entirety? | (a) | Is Article 81(1) EC to be construed as meaning that a exclusive supply contract under a brand name concluded in 1996 by a distributor of petroleum products and the proprietor of a service station requiring the latter to sell exclusively the supplier's motor-vehicle and other fuels for a fixed period, and to undertake not to sell such products supplied by other distributors, falls within the ambit of that provision in so far as that obligation involves a no-competition agreement, even though that contract might, given its commercial significance, be regarded as an agency contract? | (b) | If the contract does fall within the ambit of Article 81(1) EC, is it possible to claim the benefit of exemption from the prohibition if it satisfies the requirements of Regulation No 1984/83( 1 ), especially those relating to duration? | (c) | If that should be the case, does the fact that Articles 10 and 12 of that regulation permit the duration of the no-competition agreement to exceed five years as consideration for the granting of commercial or financial advantages by the supplier to the service station proprietor, require those commercial or financial advantages to be substantial or is it enough that they are not insignificant? Can those provisions be interpreted as meaning that such commercial or financial advantages have been conferred in exclusive supply contracts under a brand name in which the supplier of petroleum products bears the costs of installing and maintaining its brand image in the service station, or transfers fuel-tanks and -pumps which the service station proprietor may not use without the authorisation in writing of the sole supplier for products not supplied by the latter and which it must hand back when it ceases to use them as authorised, and the value of which is covered by the guarantee on first demand that the service station proprietor has provided in favour of the supplier? | (d) | If that exemption should not be applicable, does the automatic nullity provided for by Article 81(2) EC affect the contract in its entirety? |
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| (a) | Is Article 81(1) EC to be construed as meaning that a exclusive supply contract under a brand name concluded in 1996 by a distributor of petroleum products and the proprietor of a service station requiring the latter to sell exclusively the supplier's motor-vehicle and other fuels for a fixed period, and to undertake not to sell such products supplied by other distributors, falls within the ambit of that provision in so far as that obligation involves a no-competition agreement, even though that contract might, given its commercial significance, be regarded as an agency contract? | | | | | | | | |
| (b) | If the contract does fall within the ambit of Article 81(1) EC, is it possible to claim the benefit of exemption from the prohibition if it satisfies the requirements of Regulation No 1984/83( 1 ), especially those relating to duration? | | | | | | | | |
| (c) | If that should be the case, does the fact that Articles 10 and 12 of that regulation permit the duration of the no-competition agreement to exceed five years as consideration for the granting of commercial or financial advantages by the supplier to the service station proprietor, require those commercial or financial advantages to be substantial or is it enough that they are not insignificant? Can those provisions be interpreted as meaning that such commercial or financial advantages have been conferred in exclusive supply contracts under a brand name in which the supplier of petroleum products bears the costs of installing and maintaining its brand image in the service station, or transfers fuel-tanks and -pumps which the service station proprietor may not use without the authorisation in writing of the sole supplier for products not supplied by the latter and which it must hand back when it ceases to use them as authorised, and the value of which is covered by the guarantee on first demand that the service station proprietor has provided in favour of the supplier? | | | | | | | | |
| (d) | If that exemption should not be applicable, does the automatic nullity provided for by Article 81(2) EC affect the contract in its entirety? | | | | | | | | |

| 2 | (a)
Is Article 81(1) EC be interpreted as meaning that a an exclusive supply contract under a brand name, in so far as it provides that the service station proprietor must sell motor-vehicle and other fuels supplied by the exclusive supplier at the prices for sale to the public fixed by the supplier, is in theory caught by the prohibition of restriction of competition because it fixes sale prices, taking account of its economic significance and in particular of the risks assumed by the service-station proprietor and its contribution to the costs connected with the supply of goods under the contract or of the sales promotion of those goods, given the following relevant points:
(1)
The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. (2)
The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. (3)
The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. (4)
The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. (5)
The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? (b)
If so, on a proper construction of Commission Regulation (EEC) No 1984/83 of 22 June 1983, and in particular of Articles 10 to 13 thereof, do those provisions catch within their scope a contract of that kind with the result that the prohibition laid down in Article 81(1) of the EC Treaty is not applicable if the contract satisfies the requirements for exemption contained in those articles of the regulation? (c)
In that case, is Article 11 of that regulation to be construed as meaning that, if the contract imposes more than one restriction on competition, and moreover if it stipulates no competition by providing for exclusive supply by one supplying undertaking, sale prices are fixed by the supplier? Does the authorisation given by the distribution company to the service station to lower its sale price without affecting the distributor's receipts, which took place in November 2001, make it possible to regard the contract as valid? | (a) | Is Article 81(1) EC be interpreted as meaning that a an exclusive supply contract under a brand name, in so far as it provides that the service station proprietor must sell motor-vehicle and other fuels supplied by the exclusive supplier at the prices for sale to the public fixed by the supplier, is in theory caught by the prohibition of restriction of competition because it fixes sale prices, taking account of its economic significance and in particular of the risks assumed by the service-station proprietor and its contribution to the costs connected with the supply of goods under the contract or of the sales promotion of those goods, given the following relevant points:
(1)
The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. (2)
The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. (3)
The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. (4)
The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. (5)
The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? | (1) | The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. | (2) | The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. | (3) | The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. | (4) | The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. | (5) | The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? | (b) | If so, on a proper construction of Commission Regulation (EEC) No 1984/83 of 22 June 1983, and in particular of Articles 10 to 13 thereof, do those provisions catch within their scope a contract of that kind with the result that the prohibition laid down in Article 81(1) of the EC Treaty is not applicable if the contract satisfies the requirements for exemption contained in those articles of the regulation? | (c) | In that case, is Article 11 of that regulation to be construed as meaning that, if the contract imposes more than one restriction on competition, and moreover if it stipulates no competition by providing for exclusive supply by one supplying undertaking, sale prices are fixed by the supplier? Does the authorisation given by the distribution company to the service station to lower its sale price without affecting the distributor's receipts, which took place in November 2001, make it possible to regard the contract as valid? |
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| (a) | Is Article 81(1) EC be interpreted as meaning that a an exclusive supply contract under a brand name, in so far as it provides that the service station proprietor must sell motor-vehicle and other fuels supplied by the exclusive supplier at the prices for sale to the public fixed by the supplier, is in theory caught by the prohibition of restriction of competition because it fixes sale prices, taking account of its economic significance and in particular of the risks assumed by the service-station proprietor and its contribution to the costs connected with the supply of goods under the contract or of the sales promotion of those goods, given the following relevant points:
(1)
The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. (2)
The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. (3)
The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. (4)
The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. (5)
The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? | (1) | The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. | (2) | The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. | (3) | The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. | (4) | The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. | (5) | The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? | | | | | | |
| (1) | The service-station proprietor undertakes to sell exclusively the supplier's lubricants, vehicle products and motor-vehicle and other fuels, in accordance with the retail prices, conditions and sales and business methods stipulated by the supplier for a period of 10 years, which may be extended for successive periods each of five years by express agreement in writing on notice of at least six months. | | | | | | | | | | | | | | | | |
| (2) | The service-station proprietor assumes the risk associated with the motor-vehicle and other fuels as soon as they are received from the supplier in the storage tanks, including the risk of discrepancies in volume. From the moment of receipt the proprietor assumes the obligation to keep the products in the conditions necessary to ensure that they undergo no loss or deterioration and is liable, where applicable, to the supplier and to third parties for any loss, contamination or adulteration which may affect the products and for any damage arising as a result thereof. | | | | | | | | | | | | | | | | |
| (3) | The service-station proprietor is required to pay the supplier the cost of the motor-vehicle and other fuels nine days after the date of their delivery to the service station, on presentation on the date of the first supply of a bank guarantee for the total price of the supply, equivalent to 15 days. If it should fail to pay, apart from the possibility that the supplier might enforce the guarantee presented by the service-station proprietor, the latter would be required to pay for supplies before they were delivered to the service station. Payment is made by the service-station proprietor to the supplier by deducting from the price of sale to the public fixed by the distributor, including VAT, the amount of ‘commission’ due to the service-station proprietor, plus the corresponding VAT. The fuel supplied is sold on average in a period of much less than the nine days provided for payment by the applicant (respondent in these proceedings) to the defendant (the appellant in these proceedings). The distributor debits or credits the service station monthly, depending on the upward or downward variation in the prices fixed for the fuel delivered. The cost of transport is borne by the supplier. | | | | | | | | | | | | | | | | |
| (4) | The proprietor of the service station guarantees and is responsible for those customers who have signed up for the use of the credit card created and managed by the group of companies to which the supplier belongs, charges the sales made by means of the card one month after they are made, finances a small part of the cost of customers' use of the fuel distributor's loyalty card and assumes the risk of non-payment by those customers who have been allowed direct credit. | | | | | | | | | | | | | | | | |
| (5) | The supplier of the petroleum products bears the costs of installing and maintaining its brand image in the service station, and also transfers the fuel-tanks and pumps which the proprietor of the service station may not use, without the supplier's authorisation in writing, to sell products not supplied by that supplier, and which are valued precisely at the amount of the bank guarantee that the service station proprietor has presented in favour of the supplier? | | | | | | | | | | | | | | | | |
| (b) | If so, on a proper construction of Commission Regulation (EEC) No 1984/83 of 22 June 1983, and in particular of Articles 10 to 13 thereof, do those provisions catch within their scope a contract of that kind with the result that the prohibition laid down in Article 81(1) of the EC Treaty is not applicable if the contract satisfies the requirements for exemption contained in those articles of the regulation? | | | | | | | | | | | | | | | | |
| (c) | In that case, is Article 11 of that regulation to be construed as meaning that, if the contract imposes more than one restriction on competition, and moreover if it stipulates no competition by providing for exclusive supply by one supplying undertaking, sale prices are fixed by the supplier? Does the authorisation given by the distribution company to the service station to lower its sale price without affecting the distributor's receipts, which took place in November 2001, make it possible to regard the contract as valid? | | | | | | | | | | | | | | | | |

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( 1 )  Commission Regulation (EEC) No 1984/83 of 22 June 1983 on the application of Article 85(3) of the Treaty to categories of exclusive purchasing agreements (OJ L 173, p. 5).

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