Summary of Commission Decision of 14 October 2009 relating to a proceeding under Article 81 of the EC Treaty and Article 53 of the EEA Agreement (Case COMP/39.416 — Ship classification) (notified under document C(2009) 7796 final) (Text with EEA relevance)
Date: 2009-10-14
Institutions: European Commission
Subjects: dominant position, restriction on competition, restrictive trade practice, technical standard, vessel








C_2010002EN.01000501.xml










6.1.2010   


EN


Official Journal of the European Union


C 2/5





Summary of Commission Decision
of 14 October 2009
relating to a proceeding under Article 81 of the EC Treaty and Article 53 of the EEA Agreement
(Case COMP/39.416 — Ship classification)
(notified under document C(2009) 7796 final)
(Only the English text is authentic)
(Text with EEA relevance)
2010/C 2/05

On 14 October 2009, the Commission adopted a decision relating to a proceeding under Article 81 of the EC Treaty and Article 53 of the EEA Agreement. In accordance with the provisions of Article 30 of Council Regulation (EC) No 1/2003
 (1), the Commission herewith publishes the decision, having regard to the legitimate interest of undertakings in the protection of their business secrets. A non-confidential version of the entire decision is available on the Directorate-General for Competition’s website at the following address:


http://ec.europa.eu/competition/antitrust/cases/index/by_nr_78.html#i39_416







1.


This Decision pursuant to Article 9(1) of Regulation (EC) No 1/2003 is addressed to the International Association of Classification Societies and to International Association of Classification Societies Limited (hereinafter jointly referred to as ‘IACS’). It makes Commitments offered by IACS to bring the case to an end binding on IACS.










2.


The subject matter of the procedure is the treatment by IACS of third party Classification Societies which are not members of IACS. In its preliminary assessment, the Commission took the preliminary view that there may have been a restriction of competition on the relevant market of ship classification services due to IACS’ decisions (i) on the criteria and procedures ruling membership of IACS and the suspension or withdrawal of membership, and on the way that these criteria and procedures were applied; and (ii) on the elaboration and accessibility to non-IACS Classification Societies of IACS’ resolutions and technical background information relating to these resolutions. Given the Commission's preliminary view that the ten members of IACS have a strong position on the market and that Classification Societies which are not members of IACS may face significant competitive disadvantages, the Commission's preliminary assessment was that these decisions therefore raised concerns as to their compatibility with Article 81(1) of EC Treaty and Article 53(1) of EEA Agreement. Moreover, the Commission's preliminary view was that these decisions did not appear to fulfil the cumulative requirements for exemption under Article 81(3) of EC Treaty and Article 53(3) of the EEA Agreement.










3.


To address the Commission's competition concerns, IACS offered the following Commitments:






—


to set up objective and transparent membership criteria and to apply them in a uniform and non-discriminatory manner. The Commitments foresee detailed rules, including clear deadlines, for the different steps of the membership application, suspension and withdrawal procedure,










—


to ensure that Classification Societies which are not members of IACS will nonetheless be able to participate in IACS’ technical working groups,










—


to put all current and future IACS resolutions and their related technical background documents into the public domain at the same time and in the same way as they are made available to IACS members,










—


to set up an independent appeal board to settle possible disputes about access to, suspension or withdrawal of membership of IACS, participation in IACS’ technical working groups and access to IACS’ resolutions and to their technical background documents.














4.


The Commission considers that the Commitments offered by IACS following the preliminary assessment are sufficient and necessary to address the competition concerns identified in its preliminary assessment. This is also confirmed by the result of the replies to the notice pursuant to Article 27(4) of Regulation (EC) No 1/2003.










5.


With regard to the proposed criteria for membership of IACS, the Commitments strike an appropriate balance between, on the one hand maintaining demanding criteria for membership of IACS, while on the other hand removing unnecessary barriers to membership of IACS. The new criteria will ensure that only technically competent Classification Societies are eligible to become member of IACS, thus preventing that the efficiency and quality of IACS’ work is unduly impaired by too lenient requirements for participation in IACS. At the same time, the new criteria will not hinder Classification Societies, which are technically competent and willing to do so, from joining IACS.










6.


Similarly, the new IACS system for participation of non-IACS Classification Societies in IACS’ technical standard setting process, which is carried out in IACS’ technical working groups, will on the one hand ensure appropriate possibilities for non-IACS Classification Societies to participate in the development of IACS’ technical resolutions, while guaranteeing the proper functioning of IACS’ technical working groups. In addition, the Commitments will also ensure full access of non-IACS Classification Societies to the results of IACS’ technical standard setting process.










7.


The decision finds that, in view of the Commitments, there are no longer grounds for action by the Commission. The decision shall be binding until October 2014.










8.


The Advisory Committee on Restrictive Practices and Dominant Positions issued a favourable opinion on 28 September 2009.






(1)  OJ L 1, 4.1.2003, p. 1.