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aCOMMISSION OFTHEEUROPEAN COMMUNITIES
COM (79)526 final
Brussels .10th October 1979
PREPARATION OFTHE UNITED NATIONS CONFERENCE
ONRESTRICTIVE BUSINESS PRACTICES
(Geneva ,19November -7December 1979 )
(Communication from theCommission tothe Council )
■ \ ■ ' ''XT\v.x^ ■ -a
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C0M(79 )526 final

PurposeoftheCommunication -
InaccordancewithUNGeneralAssemblyresolution33/l53of20December1978ana
UNCTADresolution103(V)of30May1979>aUnitedNationsconferenceistobe
held,undertheauspicesofUNCTAD,inGenevafrom19Novemberto7December1979
inordertonegotiateacodeforthecontrolofrestrictivebusinesspractices
adverselyaffectinginternational trade. ••
Thesenegotiations willbeofmajorimportancetotheEuropeanCommunity.The
developingcountriesconsidersuchacodeasanimportantelementofthe
so-called NewInternational EconomicOrder.Thecodeislikelytoentail
considerable consequences ofapolitical ,economicandlegalnaturesinceit
isaimedatregulatingbusinessbehaviourininternational tradeworldwide.The
negotiations alsoraisespecificproblemsfortheCommunity,namelythe
participation bytheCommunityintheadoptionofthecodeanditscompatibility
withCommunitylaw. ..
ItisthereforenecessaryfortheCommunitytodefineacommonpositiononthe
keyproblemsofthecodeandonthebroadlinestobefollowedduringthe
negotiations .ThispositionmustbebasedontheviewswhichtheCommunity
.anditsMemberStates,togetherwiththeothermembercountriesoftheOECD,
defendedintheproparatory phaseofthecodeandinotherinternational forums.

-2-
I,Historical development andpresentsituation
1.Attempttocometointernational agreementonrulesonrestrictivebusiness
practiceshavealonghistory.TheywerealreadyforeseenintheHavanaChart©**
of1948whichfailedtobeaccepted.
WithinUNCTADthreeadhocgroupsofexpertshavesuccessively doneWork
intheareaofrestrictive "businesspracticessince1972.Theyhaveelaborated
proposalsforasetofmultilat©rallyagreedequitableprinciplesandrules
forthecontrolofrestrictivebusinesspracticeshavingadverseeffectson
international trade,particularly thatofdevelopingcountries,andonthe
eoonomicdevelopmentofthesecountries(referredtoascodeforthe
controlofrestrictivebusinesspractices).
WithinUNCTADnegotiations alsocontinue onacodeofconducton
transferoftechnologywhichcontainsspecifiorulesonrestrictive
businesspracticesinthecontextofinternational transferoftechnology
transactions .
Moreover,anintergovernmental groupofexpertsundertheUnitedNations
CommissiononTransnational Corporations isintheprocessofdrawing
upaninternational codeofconductgoverningtheactivitiesofsuch
corporations .Thisgrouphasdecidedtopostponediscussionofthe
chapteronrestrictivebusinesspracticesuntiltheresultsofthe
negotiations onUNCTAD'scodeofconductareavailable.
2.TheThirdadhocGroupofExpertsonRestrictive BusinessPracticeshas
submittedthereportonitssixthandlastsessionfrom17to27April1979
toUNCTADVforconsideration 1^.Thereport,inparticular,containsthe
resultoftheworkontheprinciplesandrules.
UNCTADresolution103(v),inwelcomingthisreportandnotingthe
significantprogressmadebytheexperts,recallsthatinaccordancewith
GeneralAssemblyresolution33/153thetaskoftheUNConferenceon
Restrictive BusinessPracticesis"tonegotiate,onthebasisofthework
oftheThirdadhocGroupofExperts,andtotaJcealldeoisionsnecessary
1)TD/250;TD/B/C.2/2015TD/B/C.2/AC.6/20
la)SeeCommuncationtotheCommissiontotheCouncilof20September1978,
Doc.COM(78)447

fortheadoption ofthe said principles andrules ,including a
decision ontheir legal character ".Itfurthermore requests the
UNConference "tomake recommendations inrespect ofinstitutional
aspects concerning future work onrestrictive business practices
within theframework ofUNCTAD ,"bearing inmind thework done inthis
field elsewhere inthe United Nations ".
The future code will contain ~ .
-!•provisions ofsubstance ,calling upon enterprises torefrain from
specified restrictive business practices relating tocartels andabuses
ofadominant position ofmarket power ,
-provisions adressed toStates atnational ,regional and subregional
levels with respect tothecontrol ofrestrictive business practices
-provisions relating to" collaboration at-theinternational level ,
particularly ,with respect toconsultations between states and
technical assistance fordeveloping countries . '
Theregional groups (developing countries =group of77;
GECD-oountries =group B;Eastern European socialist countries =
i
group' D)have together elaborated agreed texts onalarge number
ofprovisions .Onmajor questions ,however ,substantial differences
remain between these groups .Among themost important outstanding 7issues
left totheNegotiating Conference arethefollowing :
a)scope ofapplication ofthecode
–Group Bproposes that theprinciples andrules shall notapply
toactivities which areaccepted orexempted under anyapplicable
national law .Group of77recognizes only thepossibility of
exemptions under thelawofadeveloping country .
–Group Bproposes that theprinciples andrules shall notapply to
,practices between affiliated enterprises belonging tothe same
concern unless amounting taanabuse ofadomir-ont position of
market power .Group of77wants intra^-enterprise restrictions to
beincluded inthescope ofapplication .

-4-
b)Content ofprinciples andrules •
-Group of77proposes that national enterprises ofdeveloping countries
should beafforded preferential ordifferential treatment inorder
toensure equitable application oftheprinciples andrules .Group B
only wants toaccept that account should betaken ofspecial conditions
andeconomic circumstances ,particularly indeveloping countries ,
including theneed forsmall andmedium-sized enterprises tocooperate .
-Group of77isupported bygroup D,proposes specific rules fortrans­
national enterprises .Group Bwants transnational enterprises tobe
treated inthesame wayasenterprises based inonecountry only .
. »
-Group of77,supported bygroup D,proposes special rules for
regional integration arrangements ofdeveloped countries relating to
thecontrol ofpractices restricting trade ofdeveloping countries .
c)Légal nature ofthecode
–Group of77wants thecode tobecome legally binding .Group Bis
only willing toaccept voluntary guidelines .
d)Role ofUNCTAD
–Group of77proposes that notification would need tobemade tothe
Secretary General ofUNCTAD ofall exemptions from therules and
principles granted pursuant tothepossibilities given inthecode .
–Group of77also proposes aconsultation mechanism within UNCTAD rela­
ting toissues concerning thecontrol ofrestrictive business practices
which involve interests ofseveral states .Group Bdefends the
principle ofbilateral consultations . ■
–Group of77proposes anappropriate permanent mechanism within UNCTAD
tomonitor theimplementation ofthecode and tomake proposals and
recommendations concerning possible revisions andimprovements .Ithas
specifically proposed theestablishment ofaCommittee onRestrictive
Business Practices within UNCTAD .Group Bproposes theorganisation of
periodic meetings among officials having responsibilities related to
'thecontrol ofrestrictive business practices inStates 'andregional
groupings .

5.Thedevelopingcountrieshavereiteratedtheirpositiononthecode's
outstandingissuesintheprogrammeadoptedatthe4thministerial meet
oftheGroupof77inArusha.Particularemphasiswasputonpreferenti
treatmentfotdevelopingcountriesandtheirenterprises ,theinclusion
ofrestrictive "businesspracticesintransactions betweenvarious'
entitiesoftransnational corporations andastrengthening oftherole
UNCTADincludingnotification ,consultation andimplementation -
mechanisms.Thesedemandswereag^inintroducedinadraftresolution
ofthegroup'of77submittedtoUNCTADVinManila.
6.SeveralMemberStatesoftheCommunityandtheCommissionhave
participated intheworkdoneontheexpertlevelsincethebeginning,
.IhpreparationofUNCTADVagendaitem11b(restrictivebusiness
practices).,aCommunitypositionwasoutlinedrelatingtosomeofthe
..2)outstandingissues.InManilaaCommunityinitiativeservedasthe
basisforthedraftresolutiononitem11bsubmittedbygroupB.The
"adoptedresolution103(V)(copyattachedhereto)reflectsthe
positionheldbytheCommunityandgroupB,nottoprejudgetheoutcc:
oftheNegotiating Conference onsubstantiveissuesandinstitutional
implications . . .
2)Councildocument5386/7?/Add.2of16March1979incorporateCommission ,StaffPaperSEC(79)293/3incorporating

-β-
II.ThecodeandCommunitylaw
1.UnderCommunitylaw,inthosefieldswherecommonrulesarecontained
inthetreatiesor.havebeenadoptedfortheimplementation ofacommon
policyprovidedforinthetreaties,theMemberStates,whetheracting
individually orcollectively ,donothavetherighttoundertake
obligations withthirdcountrieswhich.affectthoserules.Wherecommon
rulesexist,theCommunityaloneisinapositiontoassumeandcarry
outobligations towardsthirdcountriesaffectingthewholesphere
3ofapplication oftheCommunitylegalsystem.
2.IntheareaofrestrictivebusinesspracticestheEECTreaty
(Articles85to90)andtheECSCTreaty(Articles65and66)contain
rulesdirectlyapplicabletoenterprises aswellasobligationsfor
theMemberStates.Theirenforcementissafeguarded bytheCommission
»
andtheCourtofJustice,aswellasbythecompetentauthorities and
tribunalsoftheMemberStates.TheCommunityhasadoptedaseries
ofregulations destinedtoimplementandcompletetherulesofthe
Treaty.Thecommoncompetitionrulesapplytoallrestrictivebusiness
practiceswhichmayhaveaneffectoncompetitionwithintheCommunity
andontradebetweentheMemberStates,notwithstanding thefact
thataconcernedundertaking maybelocatedoutsidetheCommunity.
3.Theproposedmultilateralprinciplesandrulesforthecontrolof
restrictivebusinesspracticesareuniversallyapplicable.Theymay
thereforeapplytobusinessactivitieswhichtakeplaceandproduce ■.
effectswithintheCommunity.Theyalsoapplytobusinessbehaviour
intherelationsbetweentheCommunityandthirdcountries,which
mayproduceeffectsoncompetitionandtradewithintheCommunityand
thereforecomewithinthescopeofthecommunitycompetitionrules.More­
over,theycontainprovisionsforthecontrolofrestrictivebusiness
3)seeJudgmentoftheCourtofJusticeoftheEuropeanCommunitiesof^
31March1971incase22/70(AETR),(l97l)SCR2o3;seealsoopinion1/7o
of26April1977,07noCIO7/4,3May1977

practicesadressedtostateswithrespecttotheirinternalpoliciesand.as
membersofregionaleconomiointegrationarrangements.Itisthereforeclear
thatthefuturecodewillapplyto.matterswhxchcomewxthxntheJu.riso.xction
communitylawand.couldhavesignificanteffectsontheapplicationand
implementation ofCommunitycompetitionpolicy.
BecauseofthesepossibleeffectsonCommunitylawandpolicy,itisvita:.-
fortheCommunitytodevelopacommonapproachtowardstheforthcoming
negotiationsandensurethatthecodewillnotinfringeuponanyexistingcr
futureapplicationandimplementation oftheCommunityTreaties.Inorderoob
abletocarryoutcommitmentsunderthecpdeintheareaofCommunitycompeto
theCommunityassuchmustparticipateinthenegotiationofthecode,andmus
ensurethattheCommunityintheareasofitscompetencesbecomesapartyto
thesamemannerasStates.Inadditiontothesereasons,aCommunity
participation inthenegotiation ofthecodeanditscomingintoeffect
wouldfurnishconsiderable know-howinhandlingrestrictive businesspractic-
affectinginternational trade. ,
participatxon *
This/isnecessaryirrespectiveofthelegalcharacter "ofthecode.Whileit
truethatanon-binding codewouldnotgiverisetolegalcommitments inthe
propersenseattheinternational level,itwould ,nevertheless establish
•principlesandrulesthataresupposedtoguide,toagreaterorlesserdegr
thebehaviourofthosewhohaveadoptedthemandofthosetowhomtheyare
adressed.GroupBandtheCommunity,intheseandothernegotiations (ie.cu*
ofconductontransferoftechnology,codeofconductontransnational corpo-
ons),whilearguinginfavourofnon-bindinglinesofconduct,haverepeated'
stressedthataoodeadoptedbyconsensusinthe-formofguidelineswillhav
suchapronounoedimpactthatitsprovisionswouldineffectbewidely
applied;Thiswouldbeevenmorelikelyifaneffectiveinternational isa-chii..
forthesupervisionofthecodewereagreedupon.Itwouldthereforenot
becorrecttodenythepossibilityofconflictsbetweenthecodeandCommunis
competitionpolicybyreferingsimplytothenonbindingnatureofthecode.

-8-
6..InordertorespecttheCommunitycompetenceintheareaofcompetitionpolicy
andtoensurethatthecodewillnotinfringeupontheapplicationand
implementation oftheCommunityTreatiesitisthereforenecessary
-thattheCommunityassuchparticipatesinthenegotiationofthecodeandensu­
resthatitsprovisionsapplytotheCommunityassuchintheareasofits
competence^,
–thattheCommunitymakessurethatthecodedoesnotinterferewiththe
application andimplementation ofruleswhichareinforcewithin
regionaleconomicgroupingS.This canbedoneeitherinthecontext
oftherelevantprovisionsofthecodeorbyintroducingaspecific
clauserelatingtoregionaleconomicgroupings^
SuchaclausehasbeendiscussedintheCouncilmthecontextofthe
examination ofacommunication oftheCommission totheCouncilonthe
preparation oftheconferenceoftheUnitedNationsonaninternational
codeofconductontransferoftechnology(seedoc.S/l778/78(Relex172)
of25October1978)•Onthebasisofthisdiscussion,theCOREPERhas
agreedtoaformulatobenegotiatedifnecessarywhichrepresentsacompromise
under.theassumptionthatanonlegallybindingcodeweretobeadoptedby
wayofresolutionoftheU.N.GeneralAssembly(seeminutesoftheCOREPER
meetingof7November1978,2ndpart,pt.12).Ifthecodeweretobelegally
bindingitwouldhavetobeensuredthattheCommunityassuchmaybecome
acontractingpartytoit.

-9-'
III.Proposals foraCommunity position fortheUNNegotiating Conference
1.General approach
a)TheCommunity hasalways held theview that thedevelopment of ^
international trade should take place under conditions offair
competition and that itisnecessary topromote international
cooperation inorder tocontrol restrictive "business practices
adversely affecting international trade .Theexisting national and
regional rules donotapply toallrestrictive business practices
ininternational trade ,particularly nottopractices adversely
affecting trade of those developing countries which have no
legislation inthis area .Aninterdependent world economy calls for
agreater degree ofcollaboration inorder topromote theconcept
\
ofanopen andfair trading system .Such collaboration exists among
.OECD countries anditwould notbereasonable todeny thedeveloping
countries thebenefit ofsomething ofasimilar nature .Reasonable
international rules should also beintheinterest ofthebusiness
community ingiving some guidance ajidlegal certainty .tointernational
business operations andhelping toprotect fair play incompetition . .
b)While taking apositive approach andshowing flexibility inorder to
meet reasonable demands ofthedeveloping countries ,theCommunity must
befirm ininsisting that fundamental principles oflawsuch as
non-discrimination arerespected andthat solutions areavoided thefore­
seeable effect ofwhich would betodiscourage trade andinvestment rather
than promote fair competition .International solutions inthis area should
notgobeyond principles whose soundness hasbeen firmly established onthe
basis ofexperience gained intheir application nationally orregionally .
Atthesarae time ,itmust bebone inmind that theinternational community
lacks thedegree ofooherence andinstitutional integration necessary for
theuniform operation ofasystem ofstrict control providing atthesam*
time forasufficient amount offlexibility todeal adequately with
individual cases .Itwould notbeastep towards abetter international
economic order nor a.service todeveloping countries toadopt acode
containing rules which would beeither unenforceable orcounterproductive
instifling trade relations andthus Hampering eoonomic development .

-10-
2.Exemptions under national a.ndregional lp.w
TheCommunity must insist that thecode provisions forenterprises do
notapply toactivities andforms ofcooperation which areaccepted or
exempted under applicable national orregional law .ininternational
system forthecontrol ofrestrictive business practices ininternational
trade can ,fortheforeseeable future ,only bebuilt upon existing
national andregional laws andcomplement them with regard topractices
which have effects outside their jurisdiction .Otherwise ,conflicts
between the code andboth Community andnational laws are unavoidable .
Exemptions from theprohibitions ofrestrictive business practices laws
exist for certain industries oractivities inmost countries which
have legislation inthis area .Such exemptions often reflect important
policies .Toallow exemptions from thecode rules only under thelaw
ofdeveloping countries ,asisproposed bythegroup of77>would be
discriminatory andimply intervention into internal policies toan
extent which islegally andpolitically unacceptable .
3.Preferential treatment ofenterprises ofdeveloping countries
Thegroup of77also proposes toafford preferential treatment to
national enterprises ofdeveloping countries .Such adifferentiation
would notonly beimpractical ,because cartel arrangements mayinclude
enterprises from developed anddeveloping countries ,butwould also be
contrary totheprinciple ofnon–discrimination onthebasis of
nationality ,seat orplace ofincorporation which governs theCommunity
competition rules aswell asmost national competition laws andwhich
should also govern international rules .
Ontheother hand ,group Bhasproposed that upon theapplication ofthe
rules account should betaken ofspecial conditions and economic
circumstances including theneed for small andmedium –sized enterprises
toco-operate .Such anapproach would beconsistent with Community law
andrespond adequately totheparticular needs ofinfant industries ,
which predominate inmany developing countries .

Treatmentoftransnational enterprises
/
Someprogresshas"beenmadeduringthelastmeetingsoftheexperts
towardsacceptanceofthepositionofgroupBthattherules3iouldbe
appliedinthesamewaytorestrictive "businesspracticesinvolving
transnational enterprisesastothoseinvolvingenterprises basedin
onecountryonly.Differential treatmentofenterprises undercompetition
rulesonthebasisoftheirtransnational characterwouldnotbej
consistentwithCommunitylaw.
Intra-enterprise restrictions
Itisnotappropriate toapplycompetitionrulesinthesame
waytorestrictive businesspracticescarriedonbetween
independententerprises andpracticesbetweenaffiliatedenterprises
undercommoncontrol.Article85(l)oftheTreatyofRomedoesnotapply
toagreements"betweenundertakings belongingtothesameconcernandr
havingthestatusofparentcompanyandsubsidiaryiftheundertakings
formaneconomicunitwithinwhichthesubsidiaryhasnorealfreedomto
determineitscourseofactiononthemarket,andiftheagreementsor-
practicesareconcernedmerelywiththeinternalallocationoftasks
asbetweenundertakings "
However,thJ^r^DOisalofgroupBaccordingtowhichtherulesmayapply
torestrictions betweenenterprisesbelongingtothesameconcernonly
iftheyamounttoanabuseof-adominantpositionofmarketpowerand
adverselyaffectoutsideenterprises ,isconsistentwithCommunitylaw.
Solutionstothespecificproblemsofintra-enterprise conspiracyshould
benegotiated onthebasisofthisapproach.
5JudgmentoftheCourtofJusticeoftheEuropeanCommunities of'
31October1974incase15/74(CentrafarmB.V.v.SterlingDrugInc.),
(1974)ECR1147,1167

-12-
6.Specific rules with resoect toregional integration arrangements of
developed countries
Group of77,supported bygroup D,isproposing rules requiring that regional
integration arrangements ofdeveloped countries should notimpede improved
access toexports from developing countries and should not facilitate theuse
ofrestrictive business practices adversely affecting trade anddevelopment
ofthese countries .
Tothe extent that theobject ofthese proposed rules relates togovernmental
measures oftrade policy they areoutside the scope ofacode forthe control
ofifestrictive business practices and should bediscussed elsewhere .
Tothe extent that they are -based onallegations that theapplication of
EECcompetition rules work tothe disadvantage oftrade from outside the
Community they contain amisapprehension ofEEC competition policy .This
policy hasalways been tofree trade within theCommunity and toliberalize
access totheCommon Market byremoving business practices restricting
free trade andbyrefusing toexempt cartel agreements aimed atthe
protection ofhome markets .Inremoving numerous trade barriers within the
Community ithastoaconsiderable extent contributed tooffer trade
possibilities todeveloping countries .TheCommunity competition policy has
also clearly limited thescope ofexport cartels forbidding them ifthey
have anindirect negative effect ontrade between Member States .
TheCommunity therefore suggests torefuse acceptance ofprovisions imposing
special obligations forregional groups because they aimatinterfering with
theapplication oftherules oftheTreaties andbecause they discriminate
against regional groups byunjustifiably requiring different standards
for them asopposed tothose for individual states .Itshould however
beaccepted that regional groups inapplying law inthefield ofrestrictive
trade practices are submitted tothe same principles assovereign states .

-13-
7.Légalnatureofthecode
1Uptonowthegroupof77insiststhatthecodeshouldhavealegally -
bindingcharactereventhoughthisdemandisnotexpresslyformulatedin
theArushaprogramme.GroupBcountriesandtheCommunityhaveneverleft
indoubtthattheycouldonlyacceptanonlegallybindingguidelinecode.
Themainreasonforthispositionisthatlegallybindingruleswoulddirectly
intereferewithexistingnationalandregionallaws,requireratification
proceduresandcallforanenforcementmechanismattheinternational levelfor
which,intheabsenceofaschemeofeconomicintegrationsuchasexists
intheCommunity,thenecessarypreconditions forittooperateeffectivelyare
missing.■
8.RoleofUNCTAD •
Contrarytothedemandsofthegroupof77»obligations wherebyUNCTAD
wouldbeinvolvedinconsultationsrelatingtoindividualcasesorwouldbe'
s
notifiedofindividualexemptionsfromrulesprohibitingrestrictive business
practicesshouldnotbeaccepted.Suchobligations wouldunnecessarily .
gobeyondthekindofbilateralconsultation mechanismsagreeduponwithin
03CDandcreateseriouslegalproblemsunderCommunityrulesofprocedure,
particularly withrespecttotheprovisions ondisclosureofinformation.
UnlessanotherbodywithintheUnitedNationsisbeing,entrustedwiththe
supervisionofthecodetheCommunityshould,however,acceptamoreimportant
roleforUNCTADinthefieldofrestrictive businesspracticeswithrespect
tosuchmattersastechnicalassistancefordeveloping'countriesrelating "to
theadministration ofrestrictivebusinesspracticeslegislation,the
collection anddissemination ofinformation andtheestablishment ofa
mechanismtoenablediscussionofquestionsrelatingtothecode,including
proposalsforitsrevision,aswellasthecontinuation ofworkonthe
elaboration ofamodellaworlawsonrestrictive businesspracticesinorderto
assist,developing -countriesindevisingappropriatelegislation .
Consideration shouldalsobegiventothequestionwhetheritisadvisableto
• l
createaspecialcommitteewithinUNCTADtodealwiththecodeorwhether
thiscannot.bedonewithintheexistingCommitteeonManufactures .-Duplication
ofworkwithintheUnitedNationsrelatingtorestrictivebusinesspractices
shouldinanyeventbeavoidedasmuchaspossible._

-14-
IV.Conclusions
TheCommission askstheCouncil
–toagreethattheCommunityassuchparticipatesinthenegotiation of
thecodeforthecontrolofrestrictivebusinesspracticesand.ensuresth
itsprovisionsapplytotheConmaa.ityassuch,intheareasofitscompe­
tences
–toagreethattheCommunitymustmakesureintheforthcoming
negotiations thatthecodeiscompatiblewithCommunitylawanddoes
notinterferewiththeapplication andimplementation ofCommunity
competitionpolicy
–toagreetotheproposalsforCommunitypositionsoutlinedin
paragraphIIIabovewithregardtotheUnitedNationsConference .
TheCommissionsuggeststhatfurtherCommunitycoordination takesplace
duringtheconferenceinGenevainordertodevelopcommonpositionswhere-
evernecessaryordesirableinthecourseofthenegotiations .

Annex
UNITED NATIONS CONFERENCE ONTRADE AND DEVELOPMENT
Fifth session
Manila .Philippines
Resolution 103 CV)Restrictive business practices
Date :30May1979 Meeting :169th Agenda item 11(b)
Resolution adopted without dissent Document :TD/L.157
ι
The United Nations Conference onTrade and Development ,
Taking into account thework done bythethree AdhocGroups ofExperts on
Restrictive Business Practices ,pursuant toConference resolution 73(IH )of
19May1972 andSection IIIofConference resolution 96(IV )of31May1976 ,
Taking into account also thesignificant progress made bytheThird Adhoc '»
Group ofExperts :onRestrictive Business Practices ,inparticular intheproposals
fortheformulation ofasetofmultilaterally agreed equitable principles and
rules forthecontrol ofrestrictive business practices having adverse effects on
international trade ,particularly that ofdeveloping countries ^andontheeconomic
development ofthose countries ,
Noting that anumber ofissues remain toberesolved bytheUnited Nations
Conference onRestrictive Business Practices onthebasis ofthework ofthe r
Third AdhocGroup ofExperts ,
Bearing inmind General Assembly resolution 33/153of20December 1978 convening
under theauspices oftheUnited Nations Conference onTrade andDevelopment ,a
United Nations Conference onRestrictive Business Practices tonegotiate ,onthe
basis ofthework oftheThird AdhocGroup ofExperts ,and totake alldecisions
necessary fortheadoption ,of,thesaid principles andrules ,including adecision
ontheir legal character , - - '

-2-
Recalling that theGeneral Assembly ,inresolution 33/153 5authorized the
United Nations Conference onTrade andDevelopment ,atitsfifth session ,totake
appropriate actions fortheConference onRestrictive Business Practices ,including
decisions onrelevant issues and ,inparticular ,thedetermination oftheprecise
dates fortheConference within theperiod September 1979 andApril 1980 .
Recalling further that theTrade andDevelopment Board atitstenth special
session authorized theThird AdhocGroup ofExperts totransmit itsreport onits
sixth session toUNCTAD Vforconsideration ,
1.Takes note ofandwelcomes with satisfaction thereport oftheThird Adhoc
Group ofExperts onRestrictive Business Practices onits sixth session and in
particular theproposals andrecommendations forthe setofmultilaterally agreed
equitable principles andrules ;
2.Decides ,inaccordance with General Assembly resolution 33/153 ,tohold the
United Nations Conference onRestrictive Business Practices ,inthelast quarter
of1979 ;
3.Requests theUNCTAD secretariat tomake thenecessary preparations forthe
Conference including inthis regard ofpertinent documentation tobedi-stributed in
atimely manner ;
k.Decides that continued action should betaken within the framework of
UNCTAD :
(a)tocollect publicly available information andasfaraspossible other
information ,particularly onthebasis ofrequests addressed toallmember States or
provided attheir owninitiative and ,where appropriate ,totheCentre on
Transnational Corporations andother competent international organizations ,on
restrictive business practices adversely affecting international trade particularly
that .ofdeveloping countries and theeconomic development ofthese countries ,
including information related tothelegislative ,judicial ,administrative actions
fortheeffective control ofsuch practices ;andtodisseminate such information ;
(b)onthe elaboration ofamodel laworlaws onrestrictive business
practices inorder toassist developing countries indevising appropriate
legislation ;
5.Requests member States and theSecretary-General ofUNCTAD toexplore
possibilities forinternational co-operation intheprovision oftechnical
assistance todeveloping countries relating tothecontrol ofrestrictive business
practices ,including inrespect ofthetraining oftheir officials ;

.6.Reaffirms thedecision inConference resolution 9o(IV )recommending that -
action should.be taken bycountries inamutually reinforcing manner atthenational ,
regional andinternational levels toeliminate oreffectively deal with restrictive
business practices ,including those oftransnational corporations ,adversely affecting
international trade ,particularly that ofdeveloping countries ,andtheeconomic
development ofthese countries ;
7.Requests theUnited Nations Conference onRestrictive Business Practices
tomake recommendations through theUnited Nations General Assembly tothe
Trade andDevelopment Board inrespect ofinstitutional aspects concerning
future work onrestrictive business practices within theframework ofUNCTAD ,
bearing inmind thework done inthis field elsewhere intheUnited Nations ;
8.Requests theSecretary-General ofUNCTAD toundertake studies inthefield
ofrestrictive business practices ,including those oftransnational corporations ,
adversely affecting international trade particularly that ofdeveloping countries
andtheeconomic development ofthese countries ,concerning especially :
(a)marketing anddistribution arrangements inrespect ofexport andimport
transactions ;and *""•
(b)exclusive dealing arrangements inanabuse ofadominant position of
market power ,
9.Recognizes thedesirability fordeveloping countries topromote co-operation
* ,
amongst themselves forthecontrol ofrestrictive business practices adversely
affecting their trade andeconomic development .