IN RELATION TO THE APPLICANT MUST BE REJECTED .
5 . THE DISTRIBUTION SYSTEM APPLIED IN THE UNITED KINGDOM
38 THE COMMISSION STATES IN ARTICLE 3 OF ITS DECISION THAT THE SELECTIVE DISTRIBUTION SYSTEM APPLIED BY THE APPLICANT SINCE 1974 INFRINGES ARTICLE 85 ( 1 ) OF THE TREATY BY CLAUSES 6 , 23 AND 28 OF THE DEALER AGREEMENT , THE QUANTITATIVE SELECTION OF DEALERS AND THE INFLUENCE OF THAT SYSTEM ON RESALE PRICES .
39 ACCORDING TO THE DECISION , THE APPLICANT DECIDED IN 1974 TO INTRODUCE A DISTRIBUTION SYSTEM FOR HASSELBLAD PRODUCTS . ONLY RETAILERS WHO SIGNED THE STANDARD DEALER AGREEMENT WERE RECOGNIZED AS AUTHORIZED HASSELBLAD DEALERS AND SUPPLIED BY THE SOLE DISTRIBUTOR . WITH EFFECT FROM 1 JANUARY 1979 THE APPLICANT AMENDED THE EXISTING DEALER AGREEMENT IN CERTAIN RESPECTS . THE AMENDED DEALER AGREEMENT WAS NOTIFIED TO THE COMMISSION ON 25 JANUARY 1980 .
40 IT MUST BE POINTED OUT IN THAT REGARD THAT CLAUSE 6 , TO WHICH THE COMMISSION REFERS , WAS NOT INCLUDED IN THE AGREEMENTS CONCLUDED BEFORE 1 JANUARY 1979 . ACCORDINGLY , THE OBJECTION CONCERNING THAT CLAUSE CANNOT BE UPHELD AS REGARDS THE PERIOD BETWEEN 1974 AND 1 JANUARY 1979 . CLAUSES 23 AND 28 , MENTIONED IN THE DECISION , CORRESPOND TO CLAUSES 22 AND 27 IN THE AGREEMENTS CONCLUDED BEFORE 1 JANUARY 1979 . IF IN THAT RESPECT A CLERICAL ERROR WAS MADE IN THE DECISION , THAT ERROR CANNOT HAVE HAD ANY MATERIAL EFFECT ON THE APPLICANT ' S UNDERSTANDING OF THE COMMISSION ' S OBJECTIONS . AS REGARDS THE PERIOD BETWEEN 1974 AND 1 JANUARY 1979 , THE COMMISSION ' S DECISION MUST BE UNDERSTOOD AS REFERRING TO CLAUSES 22 AND 27 OF THE PREVIOUS AGREEMENTS . THE DISTRIBUTION SYSTEM MUST THEREFORE BE CONSIDERED IN THE LIGHT OF THOSE OBSERVATIONS .
41 THE COMMISSION OBJECTS IN PARTICULAR TO THE FOLLOWING CLAUSES OF THE DEALER AGREEMENT , AS AMENDED IN 1979 , ON THE GROUND THAT THEY INFRINGE ARTICLE 85 ( 1 ) OF THE TREATY :
( A ) CLAUSE 6 ( A ), WHICH PROHIBITS UNDER ANY CIRCUMSTANCES A DEALER FROM SUPPLYING HASSELBLAD PRODUCTS TO ANY OTHER DEALER IN CAMERAS , IN THE UNITED KINGDOM OR ELSEWHERE , WITHOUT THE APPLICANT ' S PRIOR CONSENT ;
( B)CLAUSE 23 ( C ), WHICH REQUIRES , IN PARTICULAR , THE DEALER TO WITHDRAW AND NOT TO REPEAT ANY ADVERTISEMENTS OR ANNOUNCEMENTS TO WHICH THE APPLICANT HAS NOTIFIED ITS OBJECTIONS IN WRITING TO THE DEALER ; AND
( C)CLAUSE 28 , WHICH ENABLES THE APPLICANT TO TERMINATE THE AGREEMENT WITHOUT PRIOR NOTIFICATION IF THE DEALER FAILS TO OBSERVE ANY OF THE TERMS OR CONDITIONS OF THE AGREEMENT OR IF THE DEALER CHANGES THE GEOGRAPHICAL LOCATION OF HIS PREMISES WITHOUT THE APPLICANT ' S PRIOR APPROVAL IN WRITING , THE DEALER BEING REQUIRED TO NOTIFY THE APPLICANT IMMEDIATELY IF HE TRANSFERS HIS BUSINESS PREMISES TO ANOTHER LOCATION .
42 IN SUPPORT OF ITS OBJECTION THE COMMISSION CONTENDS THAT THE