WRITTEN QUESTION E-4147/97 by Gastone Parigi (NI) to the Commission (21 January 1998)

Subject: System of direct negotiation between oil companies and petrol station managers for exclusive purchase in Italy

The oil companies have arranged almost identical unilateral economic agreements (direct negotiation) to be applied in the annual negotiations with individual petrol station managers for the exclusive purchase of fuel and non-oil products.

The competitions and market authority has already been asked for a ruling on the legitimacy of the system (at Community and national level) on the basis of Regulation 1984/83 ((OJ L 173, 30.6.1983, p. 5.)) of 22 June 1983 and national law 287/90 of 10 October 1990.

Without going into details, can the Commission state whether:

1. It was aware of the exchanges of contracts arranged by the oil companies for the exclusive purchase of fuel?

2. If so, can the conduct of the oil companies and the terms of the direct negotiations between oil companies and managers be described as contrary to competition law?

3. Can the terms of the direct negotiations concerning non-oil products also be regarded as violations of Community law?

4. What will the Commission do to ensure proper application of Community law?

Answer given by Mr Van Miert on behalf of the Commission (5 March 1998)

1. The Commission is aware of the agreements concluded between oil companies and petrol station managers in Italy (the Honourable Member is referred to Written Question E-2249/97 by Mr Caligaris ((OJ C 102, 3.4.1998, p. 19. ))). These agreements are concluded under the system of 'direct negotiation', which seeks to establish objective economic factors to be taken into account by operators in negotiations between suppliers and individual managers.

2. and 3. An assessment as to whether an agreement between companies complies with EU competition law requires detailed analysis of its provisions and an evaluation of its economic context. The Commission cannot, therefore, give its opinion in the abstract on the fundamental issues raised by the Honourable Member.

Moreover, the direct negotiation system must be assessed within the broader framework of the regulations governing fuel distribution in Italy. This legislative framework is currently in the process of being revised. According to the information available to the Commission, the purpose of this revision is to deregulate the sector by abolishing the current system of concessions granted by the Italian administrative authorities and replacing it by a system of authorisation on the basis of objective criteria for the running of service stations.

4. The Commission maintains regular contact with the Autorità garante della concorrenza e del mercato (the Italian competition authority), which is also following this issue closely, in order to obtain the final texts resulting from the legislative changes currently in progress. This authority is responsible for the application of both Italian legislation and Community legal provisions on competition.

The Italian competition authority is well placed to assess the extent to which the agreements in question meet the requirements of competition law. After all, these agreements have their main impact in Italy. Moreover, the Italian competition authority has in-depth knowledge of the activities and the companies concerned.

In the present case, it may be appropriate for the Italian competition authority to interpret and apply 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.

Moreover, the Commission would remind the Honourable Member that the national courts are also responsible for examining agreements under Article 85(1) of the Treaty and secondary legislation. Where appropriate, the national courts can declare agreements void, as provided for by Article 85(2) of the Treaty.