Judgment of the Court of 9 September 2003 in Case C-137/00 (Reference for a preliminary ruling from the High Court of Justice (England & Wales), Queen's Bench Division (Crown Office): The Queen v The Competition Commission, formerly The Monopolies and Mergers Commission, Secretary of State for Trade and Industry, The Director General of Fair Trading, ex parte: Milk Marque Ltd, National Farmers' Union, third party: Dairy Industry Federation (DIF) (Common agricultural policy — Articles 32 EC to 38 EC — Regulation (EEC) No 804/68 — Common organisation of the market in milk and milk products — Target price for milk — Regulation No 26 — Application of certain competition rules to the production of and trade in agricultural products — Whether Member States may apply national competition rules to milk producers who choose to organise themselves into cooperatives and hold market power)
Date: 2003-11-01
Institutions: Court of Justice
Subjects: United Kingdom, competition policy, interpretation of the law, milk product, producer organisation, target price

C 264/2

EN

Official Journal of the European Union

1.11.2003

JUDGMENT OF THE COURT

of 9 September 2003

in Case C-137/00 (Reference for a preliminary ruling from
the High Court of Justice (England & Wales), Queen’s
Bench Division (Crown Office): The Queen v The Compe-
tition Commission, formerly The Monopolies and Merg-
ers Commission, Secretary of State for Trade and Indus-
try, The Director General of Fair Trading, ex parte: Milk
Marque Ltd, National Farmers’ Union, third party: Dairy
Industry Federation (DIF) (1)

(Common agricultural policy — Articles 32 EC to 38 EC —
Regulation (EEC) No 804/68 — Common organisation of
the market in milk and milk products — Target price
for milk — Regulation No 26 — Application of certain
competition rules to the production of and trade in agricul-
tural products — Whether Member States may apply
national competition rules to milk producers who choose to
organise themselves into cooperatives and hold market
power)

(2003/C 264/02)

(Language of the case: English)

In Case C-137/00: Reference to the Court under Article 234
EC by the High Court of Justice of England and Wales, Queen’s
Bench Division (Crown Office) for a preliminary ruling in the
proceedings pending before that court between The Queen
and The Competition Commission, formerly The Monopolies
and Mergers Commission, Secretary of State for Trade and
Industry, The Director General of Fair Trading, ex parte: Milk
Marque Ltd, National Farmers’ Union,
third party: Dairy
Industry Federation (DIF), on the interpretation of Articles 12,
28 to 30, 32 to 38, 49 and 55 EC, of Council Regulation
No 26 of 4 April 1962 applying certain rules of competition
to production of and trade in agricultural products (OJ, English
Special Edition 1959-1962, p. 129) and of Regulation (EEC)
No 804/68 of the Council of 27 June 1968 on the common
organisation of the market in milk and milk products (OJ,
English Special Edition 1968 (I), p. 176), as amended by
Council Regulation (EC) No 1587/96 of 30 July 1996 (OJ
1996 L 206, p. 21), the Court, composed of: M. Wathelet,
President of the First and Fifth Chambers, acting as President,
R. Schintgen and C.W.A. Timmermans (Presidents of Cham-
bers), C. Gulmann, D.A.O. Edward, A. La Pergola, P. Jann,
V. Skouris (Rapporteur), F. Macken, N. Colneric, and J.N. Cunha
Rodrigues, Judges; C. Stix-Hackl, Advocate General; L. Hewlett,
Principal Administrator, for the Registrar, has given a judgment
on 9 September 2003, in which it has ruled:

2.

3.

1. Articles 32 to 38 EC, Council Regulation No 26 of 4 April
1962 applying certain rules of competition to production of
and trade in agricultural products and Regulation (EEC)
No 804/68 of the Council of 27 June 1968 on the common
organisation of the market in milk and milk products, as
amended by Council Regulation (EC) No 1587/96 of 30 July
1996, must be interpreted as meaning that,
in the sector
governed by the common organisation of the market in milk
and milk products, the national authorities in principle retain
jurisdiction to apply national competition law to a milk
producers’ cooperative in a powerful position on the national
market.

Where the national competition authorities act in the sector
governed by the common organisation of the market in milk
and milk products, they are under an obligation to refrain from
adopting any measure which might undermine or
create
exceptions to that common organisation.

Measures taken by national competition authorities in the sector
governed by the common organisation of the market in milk
and milk products may not, in particular, produce effects which
are such as to impede the working of the machinery provided
for by that common organisation. However, the mere fact that
the prices charged by a dairy cooperative were already lower
than the target price for milk before those authorities intervened
is not sufficient to render the measures taken by them in relation
to that cooperative in application of national competition law
unlawful under Community law.

Furthermore, such measures may not compromise the objectives
of the common agricultural policy as set out in Article 33(1) EC.
The national competition authorities are under an obligation to
ensure that any contradictions between the various objectives
laid down in Article 33 EC are reconciled where necessary,
without giving any one of them so much weight as to render
the achievement of the others impossible.

the target price for milk laid down in
The function of
Article 3(1) of Regulation No 804/68, as amended by
Regulation No 1587/96, does not preclude the national
competition authorities from using that price for the purposes
of investigating the market power of an agricultural undertaking
by comparing variations in actual prices with the target price.

In the context of the application of national competition law,
the Treaty rules on the free movement of goods do not preclude
the competent authorities of a Member State from prohibiting
a dairy cooperative which enjoys market power from entering
into contracts with undertakings, including undertakings estab-
lished in other Member States, for the processing, on its behalf,
of milk produced by its members.

1.11.2003

EN

Official Journal of the European Union

C 264/3

4. Article 12 EC and the second subparagraph of Article 34(2)
EC do not preclude the adoption of measures such as those at
issue in the main proceedings against a dairy cooperative which
enjoys market power and exploits that position in a manner
contrary to the public interest, even though large vertically-
integrated dairy cooperatives are permitted to operate in other
Member States.

(1) OJ C 176 of 24.6.2000.

JUDGMENT OF THE COURT

(Sixth Chamber)

of 18 September 2003

in Case C-338/00 P: Volkswagen AG (1)

(Appeal — Competition — Distribution of motor vehicles
— Partitioning of the market — Article 85 of the EC Treaty
(now Article 81 EC) — Regulation (EEC) No 123/85
— Whether the infringement can be attributed to the
undertaking concerned — Right to a fair hearing — Duty to
state reasons — Legal consequences of disclosure to the press
— Effect of propriety of the notification on the calculation
of the fine — Cross-appeal)

JUDGMENT OF THE COURT

(Fifth Chamber)

of 18 September 2003

in Case C-331/00: Hellenic Republic v Commission of the
European Communities (1)

(2003/C 264/04)

(EAGGF — Clearance of accounts — Financial years 1996,
1997 and 1998 — Arable crops — Beef — Aid for early
retirement)

(Language of the case: German)

(2003/C 264/03)

(Language of the case: Greek)

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-331/00, Hellenic Republic (Agents: V. Kontolaimos
and I. K. Chalkias, as well as by C. Tsiavou) v Commission of
the European Communities (Agent: M. Condou-Durande):
Application for partial annulment of Commission Decision
2000/449/EC of 5 July 2000 excluding from Community
financing certain expenditure incurred by the Member States
under the Guarantee Section of the European Agricultural
(OJ 2000 L 180,
Guidance and Guarantee Fund (EAGGF)
p. 49), in so far as its concerns the Hellenic Republic, the Court
(Fifth Chamber), composed of: D.A.O. Edward (Rapporteur),
acting for the President of the Fifth Chamber, A. La Pergola,
P. Jann, S. von Bahr and A. Rosas, Judges; A. Tizzano, Advocate
General; M.-F. Contet, Principal Administrator, for the Regis-
trar, has given a judgment on 18 September 2003, in which it:

1. Dismisses the application;

2. Orders the Hellenic Republic to pay the costs.

(1) OJ C 355 of 9.12.2000.

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-338/00 P, Volkswagen AG, established in Wolfsburg
(Germany) (represented by R. Bechtold): Appeal against the
judgment of the Court of First Instance of the European
Communities (Fourth Chamber) of 6 July 2000 in Case T-62/
98 Volkswagen v Commission [2000] ECR II-2707, seeking
to have that judgment set aside in part, the other party to the
proceedings being: Commission of the European Communities
(Agent: K. Wiedner, assisted by H.-J. Freund), the Court (Sixth
Chamber), composed of:
J.-P. Puissochet, President of the
Chamber, C. Gulmann, V. Skouris (Rapporteur), F. Macken
and N. Colneric, Judges; D. Ruiz-Jarabo Colomer, Advocate
General; M.-F. Contet, Principal Administrator, for the Regis-
trar, has given a judgment on 18 September 2003, in which it:

1. Dismisses the main appeal and the cross-appeal;

2. Orders each party to bear its own costs.

(1) OJ C 335 of 25.11.2000.