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Commission Notice on restrictions directly related and necessary to concentrations

(2005/C 56/03)

(Text with EEA relevance)

I.   INTRODUCTION

II.   GENERAL PRINCIPLES

III.   PRINCIPLES APPLICABLE TO COMMONLY ENCOUNTERED RESTRICTIONS IN CASES OF ACQUISITION OF AN UNDERTAKING

A.   Non-competition clauses

B.   Licence agreements

C.   Purchase and supply obligations

IV.   PRINCIPLES APPLICABLE TO COMMONLY ENCOUNTERED RESTRICTIONS IN CASES OF JOINT VENTURES WITHIN THE MEANING OF ARTICLE 3(4) OF THE MERGER REGULATION

A.   Non-competition obligations

B.   Licence agreements

C.   Purchase and supply obligations

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(1)OJ L 24, 29.1.2004, p. 1.

(2)  For the purpose of this Notice, a decision is considered to be published when it is published in the Official Journal of the European Union or when it is made available to the public on the Commission's web site.

(3)  See for example Commission Decision of 1 September 2000 (COMP/M.1980 – Volvo/Renault V.I., paragraph 56) - high degree of customer loyalty; Commission Decision of 23 October 1998 (IV/M.1298 – Kodak/Imation, paragraph 73) - long product life cycle; Commission Decision of 13 March 1995 (IV/M.550 – Union Carbide/Enichem, paragraph 99) – limited number of alternative producers; Commission Decision of 30 April 1992 (IV/M.197 – Solvay-Laporte/Interox, paragraph 50) – longer protection of know-how required.

(4)  Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty, OJ L 1, 4.1.2003, p 1; Regulation as last amended by Regulation (EC) No 411/2004 (OJ L 68, 6.3.2004, p. 1).

(5)  Council Regulation (EEC) No 1017/68 of 19 July 1968 applying rules of competition to transport by rail, road and inland waterway, OJ L 175, 23.7.1968, p. 1; Regulation as last amended by Regulation (EC) No 1/2003 .

(6)  Council Regulation (EEC) No 4056/86 of 22 December 1986 laying down detailed rules for the application of Articles 81 and 82 of the Treaty to maritime transport, OJ L 378, 31.12.1986, p. 4; Regulation as last amended by Regulation (EC) No 1/2003.

(7)  See, for example, for licence agreements Regulation (EC) No 772/2004 of 27 April 2004 on the application of Article 81(3) of the Treaty to categories of technology transfer agreements, OJ L 123, 27.4.2004, p. 11; see for supply and purchase agreements e.g. Commission Regulation (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices, OJ L 336, 29.12.1999, p. 21.

(8)OJ C 188, 4.7.2001, p. 5.

(9)  See e.g. Commission Decision of 10 August 1992 (IV/M.206 – Rhône-Poulenc/SNIA, paragraph 8.3); Commission Decision of 19 December 1991 (IV/M.113 – Courtaulds/SNIA, paragraph 35); Commission Decision of 2 December 1991 (IV/M.102 – TNT/Canada Post/DBP Postdienst/La Poste/PTT Poste & Sweden Post, paragraph 46).

(10)  Likewise, a restriction could, if all other requirements are fulfilled, be ‘directly related’ even if it has not been entered into at the same time as the agreement carrying out the main object of the concentration.

(11)  See European Court of Justice, Case 42/84 (Remia), [1985] ECR 2545, paragraph 20; Court of First Instance, Case T-112/99 (Métropole Télévision – M6), [2001] ECR II-2459, paragraph 106.

(12)  Commission Decision of 18 December 2000 (COMP/M.1863 – Vodafone/BT/Airtel JV, paragraph 20).

(13)  Commission Decision of 30 July 1998 (IV/M.1245 – VALEO/ITT Industries, paragraph 59); Commission Decision of 3 March 1999 (IV/M.1442 – MMP/AFP, paragraph 17); Commission Decision of 9 March 2001 (COMP/M.2330 – Cargill/Banks, paragraph 30); Commission Decision of 20 March 2001 (COMP/M.2227 – Goldman Sachs/Messer Griesheim, paragraph 11).

(14)  Commission Decision of 25 February 2000 (COMP/M.1841 – Celestica/IBM, paragraph 21).

(15)  Commission Decision of 30 March 1999 (IV/JV.15 – BT/AT&T, paragraphs 207-214); Commission Decision of 22 December 2000 (COMP/M.2243 – Stora Enso/Assidoman/JV, paragraphs 49, 56 and 57).

(16)  Commission Decision of 27 July 1998 (IV/M.1226 – GEC/GPTH, paragraph 22); Commission Decision of 2 October 1997 (IV/M.984 – Dupont/ICI, paragraph 55); Commission Decision of 19 December 1997 (IV/M.1057 – Terra Industries/ICI, paragraph 16); Commission Decision of 18 December 1996 (IV/M.861 – Textron/Kautex, paragraphs 19 and 22); Commission Decision of 7 August 1996 (IV/M.727 - BP/Mobil, paragraph 50).

(17)  Commission Decision of 27 July 1998 (IV/M.1226 – GEC/GPTH, paragraph 24).

(18)  See, for example, for a clause aiming at the protection of a part of the business remaining with the vendor: Commission Decision of 30 August 1993 (IV/M.319 - BHF/CCF/Charterhouse, paragraph 16).

(19)  As defined in Article 1(1)(i) of Regulation (EC) No 772/2004 .

(20)  See European Court of Justice, Case 42/84 (Remia), [1985] ECR 2545, paragraph 20; Court of First Instance, Case T-112/99 (Métropole Télévision – M6), [2001] ECR II-2459, paragraph 106.

(21)  See for exceptional cases in which longer periods may be justified e.g. Commission Decision of 1 September 2000 (COMP/M.1980 – Volvo/Renault V.I., paragraph 56); Commission Decision of 27 July 1995 (IV/M.612 – RWE-DEA/Enichem Augusta, paragraph 37); Commission decision of 23 October 1998 (IV/M.1298 – Kodak/Imation, paragraph 74).

(22)  Commission Decision of 2 April 1998 (IV/M.1127 – Nestlé/Dalgety, paragraph 33); Commission Decision of 1 September 2000 (COMP/M.2077 – Clayton Dubilier & Rice/Iteltel, paragraph 15); Commission Decision of 2 March 2001 (COMP/M.2305 – Vodafone Group PLC/EIRCELL, paragraphs 21 and 22).

(23)  Commission Decision of 12 April 1999 (IV/M.1482 – KingFisher/Grosslabor, paragraph 26); Commission Decision of 14 December 1997 (IV/M.884 – KNP BT/Bunzl/Wilhelm Seiler, paragraph 17).

(24)  Commission Decision of 14 December 1997 (IV/M.884 – KNP BT/Bunzl/Wilhelm Seiler, paragraph 17); Commission Decision of 12 April 1999 (IV/M.1482 – KingFisher/Grosslabor, paragraph 27); Commission Decision of 6 April 2001 (COMP/M.2355 – Dow/Enichem Polyurethane, paragraph 28); Commission Decision of 4 August 2000 (COMP/M.1979 – CDC/Banco Urquijo/JV, paragraph 18).

(25)  Commission Decision of 14 December 1997 (IV/M.884 – KNP BT/Bunzl/Wilhelm Seiler, paragraph 17); Commission Decision of 2 March 2001 (COMP/M.2305 – Vodafone Group PLC/EIRCELL, paragraph 22); Commission Decision of 6 April 2001 (COMP/M.2355 – Dow/Enichem Polyurethane, paragraph 28); Commission Decision of 4 August 2000 (COMP/M.1979 – CDC/Banco Urquijo/JV, paragraph 18).

(26)  Commission Decision of 4 February 1993 (IV/M.301 – Tesco/Catteau, paragraph 14); Commission Decision of 14 December 1997 (IV/M.884 – KNP BT/Bunzl/Wilhelm Seiler, paragraph 19); Commission Decision of 12 April 1999 (IV/M.1482 – Kingfisher/Grosslabor, paragraph 27); Commission Decision of 6 April 2000 (COMP/M.1832 – Ahold/ICA Förbundet/Canica, paragraph 26).

(27)  Accordingly, confidentiality clauses on customer details, prices and quantities cannot be extended. By contrast, confidentiality clauses concerning technical know-how may exceptionally be justified for longer periods, see Commission Decision of 29 April 1998 (IV/M.1167 – ICI/Williams, paragraph 22); Commission Decision of 30 April 1992 (IV/M.197 – Solvay-Laporte/Interox, paragraph 50).

(28)  Including patent applications, utility models, applications for registration of utility models, designs, topographies of semiconductor products, supplementary protection certificates for medicinal products or other products for which such supplementary protection certificates may be obtained and plant breeder's certificates (as referred to in Article 1(1)(h) of Regulation (EC) No 772/2004.

(29)  As defined in Article 1(1)(i) of Regulation (EC) No 772/2004.

(30)  To the extent that they fall within Article 81(1) of the EC Treaty, such agreements may nevertheless fall under Regulation (EC) No 772/2004, or other Community legislation.

(31)  Commission Decision of 1 September 2000 (COMP/M.1980 – Volvo/Renault V.I., paragraph 54).

(32)  Commission Decision of 5 February 1996 (IV/M.651 – AT&T/Philips, VII.); Commission Decision of 30 March 1999 (IV/JV.15 – BT/AT&T, paragraph 209; see for exceptional cases Commission Decision of 13 March 1995 (IV/M.550 – Union Carbide/Enichem, paragraph 99); Commission Decision of 27 July 1995 (IV/M.612 – RWE-DEA/Enichem Augusta, paragraph 45).

(33)  In line with the principle of proportionality, obligations providing for fixed quantities with a variation clause are, in these cases, less restrictive on competition, see e.g. Commission Decision of 18 September 1998 (IV/M.1292 – Continental/ITT, paragraph 19).

(34)  Commission Decision of 30 July 1998 (IV/M.1245 – VALEO/ITT Industries, paragraph 64); see for exceptional cases (e.g. absence of a market) Commission Decision of 13 March 1995 (IV/M.550 – Union Carbide/Enichem, paragraphs 92 to 96); Commission Decision of 27 July 1995 (IV/M.612 – RWE-DEA/Enichem Augusta, paragraphs 38 et seq.).

(35)  Commission Decision of 15 January 1998 (IV/M.1042 - Eastman Kodak/Sun Chemical, paragraph 40); Commission Decision of 7 August 1996 (IV/M.727 - BP/Mobil, paragraph 51); Commission Decision of 3 July 1996 (IV/M.751 - Bayer/Hüls, paragraph 31); Commission Decision of 6 April 2000 (COMP/M.1832 - Ahold/ICA Förbundet/Canica, paragraph 26).

(36)  Commission Decision of 29 August 2000 (COMP/M.1913 - Lufthansa/Menzies/LGS/JV; paragraph 18); Commission Decision of 22 December 2000 (COMP/M.2243 - Stora Enso/Assidoman/JV, paragraph 49, last sentence).

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