NoL286/24 OfficialJournaloftheEuropeanCommunities 5.11.75
COMMISSION DECISION
of23October1975
relatingtoaproceedingunderArticle85oftheEECTreaty(IV/223—Trans­
oceanMarinePaintAssociation )
(OnlytheEnglishtextisauthentic)
(75/649/EEC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle85
thereof;
HavingregardtoRegulationNo17(!)of6February
1962,andinparticularArticle8thereof;
HavingregardtotheCommissionDecisionof21
December1973(2)grantingexemptiontotheTrans­
oceanMarinePaintAssociation until31December
1978inaccordancewithArticle85(3);
HavingregardtotheJudgmentoftheEuropean
CourtofJusticeof23October1974(3)which
annulledArticle3(1)(d)oftheCommissionDecision
mentionedabove;
Havingconsideredtherepresentations oftheAssocia­
tioninaccordancewithArticle19(1)ofRegulation
No17andRegulationNo99/63/EEC(4);
HavingregardtotheOpinionoftheAdvisory
Committee onRestrictivePracticesandDominant
PositionsobtainedpursuanttoArticle10ofRegula­
tionNo17on15July1975;
WHEREAS :
BytheDecisionof21December1973theCommis­
siongrantedexemptiontotheTransoceanMarine
PaintAssociationuntil31December1978inaccor­
dancewithArticle85(3).Article3oftheDecision
providedthattheDecisionshouldbesubjecttothe
followingobligations :
1.ThattheCommission shallbeinformedwithout
delayofthefollowingmatters:
(a)anyamendmentoradditiontotheAgreement ;
(b)anydecisiontakenbytheBoardofDirectorsor
theresultofanyarbitrationheldpursuantto
therestrictiveprovisionsoftheAgreement,in
particularArticles3to9thereof;
(c)anychangeinthecompositionofmember­
ship;
(d)anylinksbywayofcommondirectorsor
managersbetweenamemberoftheAssociationandanyothercompanyorfirminthepaints
sectororanyfinancialparticipation bya
memberoftheAssociation insuchoutside
companiesorfirmsorviceversaincludingall
changesinsuchlinksorparticipations already
inexistence .
2.AreportistobesubmittedbytheAssociation
annuallytotheCommissionontheactivitiesofthe
Associationandinparticularonimprovements
achievedintheproductionandmarketingof
marinepaintproducts.
TheEuropeanCourtofJusticeon23October1974
annulledArticle3(1)(d)oftheCommission'sDeci­
sioninthiscaseforbreachofproceduralrequire­
mentsandreferredthecasebacktotheCommission
(Case17/74).
TheCourtnevertheless confirmedthattheCommis­
sionmustbeinapositionatanytimetoverifythat
theconditionsjustifyingtheexemptionarestill
present.
IngrantingitsexemptiontheCommissionconsidered
interaliathatthemembersoftheAssociation are
medium-sized undertakings facedwithgenuine
competitionfromotherlargermarinepaintproducers,
thatthecontractualcommitments ofthemembers
relatingtotheAssociationarelimitedtoindispens­
ablerestrictionsandthatthemarketshareoftheAsso­
ciationmembersdoesnotpresentanyopportunityto
restrictcompetitionsignificantlyinthemarinepaint
sector.
InaccordancewiththeprovisionsofArticle8(1)of
RegulationNo17,theCommissionmustberegularly
informedofanylinksbetweenAssociationmembers
andbetweenanAssociationmemberandanyother
paintenterprisewheresuchotherpaintenterprise
doesbusinesswithinthecommonmarketinorderto
beabletoverifywhether,havingregardtoArticle
8(3)(a)ofRegulationNo17,therehasbeenachange
inanyofthefactswhichwerebasictothemakingof
theDecision .
IntheviewoftheCommissionthedutytoprovide
informationconcerninglinksbetweenAssociation(>)OJNo13,21.2.1962,p.204/62.
(2)OJNoL19,23.1.1974,p.18.
(3)ReportsofCases,1974to1976,p.1063.
(4)OJNo127,20.8.1963,p.2268/63.

5.11.75 OfficialJournaloftheEuropeanCommunities NoL286/25
HASADOPTEDTHISDECISION :
Article1
Article3(1)(d)ofCommission DecisionNo
74/16/EECof21December1973isreplacedbythe
following:
'(d)Anylinkandanychangesinsuchlinks,
presentorfuture,constitutedbymeansofa
financialparticipationamountingto25%or
moreofthesharecapitalbywayofcommon
directorsormanagers
(aa)betweenmembersoftheAssociation,or
(bb)amemberoftheAssociationandanother
enterpriseinthepaintsector,provided
thatsuchnon-member carriesonbusiness
directlyorindirectlywithintheCommu­
nityinthepaintsector,thatistosay
undertakes businessinoneormore
MemberStatesdirectlyorthrougha
subsidiaryundertakingorbymeansofa
jointventure.'
Article2
ThisDecisionisaddressedtothemembersofthe
TransoceanMarinePaintAssociationthroughthe
intermediary ofitsSecretary-General ,MrF.Th.
Regnault,DelftsePlein37,Rotterdam,theNether­
lands.membersandoutsideenterprisescannotbelimitedto
themarinepaintsectoralone,butrathermustextend
tolinkswithenterprisesinthepaintsectorasawhole.
AllAssociationmembersmanufacturenotonly
specialmarinepaintproductsbutalsootherpaints.At
least20%ofallthemarinepaintscanbeusedin
otherpaintfields.Moreovercertainpartsofaship(e.g.
theinterior)canbetreatedwithotherpaints.Apaint
manufacturer iscapableofextendinghisproduction
inarelativelyshorttimetothemarinepaintsector.
LinksbetweenanAssociationmemberandanunder­
takinginthegeneralpaintsectorarethereforecapable
ofhavinganinfluenceonthecompetitionsituationin
themarinepaintsector.
Ontheotherhand,theobligationistobelimitedto
linkswithsuchenterprisesascarryonbusinesswithin
theCommunityinthepaintsector,thatistosay
thosewhichdobusinessinoneorseveralMember
States,directlyorthroughsubsidiaryundertakingsor
bymeansofajointventure.
Alinkshallberegardedasexistingbetweentwoenter­
priseswherethereisa25%,financialparticipationor
wherethereareinterlockingdirectorshipsormanage­
mentsbetweenoneundertakingandanother,irrespec­
tiveofwhethertheAssociation memberhasan
interestintheotherundertakingorviceversa.
Changesinsuchlinksmustalsobenotified.
Thedutyofprovidingtheinformationspecifiedis
imposedoneachexistingAssociationmember,in
whosefavourtheexemptionwasgranted,andalsoon
anyfuturememberswhomaysubsequentlybenefit
fromitbyjoiningthegroup.TheCommissionwill
continuetoacceptnotificationsmadebytheCentral
Officeonbehalfofindividualmembers.However,
suchnotificationsmustbecompleteandtheCommis­
sionwillnotacceptthefailureoftheCentralOffice
tomakesuchcompletenotificationduetolackof
informationasexoneratingtheindividualfirmsfrom
theobligationhereinafterimposed,DoneatBrussels,23October1975.
FortheCommission
A.BORSCHETTE
MemberoftheCommission