WRITTEN QUESTION No. 2504/98 by Astrid LULLING to the Commission. Single market and exclusive distribution contracts
Date: 1998-07-30
Institutions: European Parliament, LULLING
Subjects: Belgium, Luxembourg, exclusive distribution agreement, prices, restriction on competition, single market

14.5.1999

EN

Official Journal of the European Communities

C 135/65

was found in 1997 for contracts concluded before the memorandum was signed providing for an exchange
of letters between the contractors concerned and the Ministry for Atomic Energy of the Russian Federation
(Minatom) allowing the findings of studies to be made available to beneficiaries.

Supply agencies are used solely for work which is not the responsibility of the public authorities.

The fee structure of Phare and Tacis contracts prevents experts from partner countries being invoiced at
Community fee rates. The proportion of work sub-contracted to experts in partner countries varies
according to the nature of the project under consideration. Studies of reactor design safety generally
necessitate a substantial contribution from the original designer (in some cases 50 %). On-site assistance
contracts require much less involvement on the part of local sub-contractors.

(1) PE 223.140.

(1999/C 135/076)

WRITTEN QUESTION E-2504/98

by Astrid Lulling (PPE) to the Commission

(30 July 1998)

Subject: Single market and exclusive distribution contracts

Because of the small size of the Grand Duchy of Luxembourg, retailers in Luxembourg always have to
buy from Belgian suppliers who have concluded exclusive distribution contracts for Belgium and
Luxembourg.

In some cases ‘physical’ delivery of the goods to the Luxembourg retailer is carried out directly by a
producer or wholesaler who is not based in Belgium, whereas ‘accounting’ delivery goes through the
Belgian intermediary, adding to the initial price a commission which can vary between 15 and 40 %.

Does the Commission consider this system, which often results in the price charged to the Luxembourg
retailer being higher than the consumer price of the same product in neighbouring countries, to be
compatible with the single market and the principle of fair competition?

What measures could the Commission take to ensure that retailers in Luxembourg have the right to buy
their stock in any country they choose where there are distribution networks for the same product and thus
escape exorbitantly expensive distribution networks?

Answer given by Mr Van Miert on behalf of the Commission

(6 November 1998)

Commission Regulation (EEC) 1983/83 of 22 June 1983 on the application of Article 85(3) of the Treaty to
categories of exclusive distribution agreements (1) exempts, pursuant to Article 85(3) of the EC Treaty,
exclusive distribution agreements, that is agreements whereby one party agrees with the other to supply
certain goods for resale within the whole or a defined area of the common market only to that other. It is
therefore in line with the Community competition rules to assign to one distributor the task of reselling
certain goods in a defined area of the common market, such as the Belgo-Luxembourg area.

However, the Regulation provides that the block exemption ceases to apply to the agreements in question
if the contract goods cannot be supplied by other importers in the area covered by the exclusive
distribution agreement or obtained by users or intermediaries established in that area from undertakings
outside it whose terms are more favourable.

(1) OJ L 173, 30.6.1983.