PRODUCTION AND MARKETING AND THE PARTIES REMAIN ACTUAL OR AT LEAST POTENTIAL COMPETITORS . THIS FACT IS FURTHER CONFIRMED BY THE LIMITATION , UNDER THE AGREEMENT , OF THE JOINT VENTURE ' S ACTIVITIES TO A SPECIFIC TERRITORY AND THE INCLUSION OF CERTAIN RESTRICTIONS IN THE ACTIVITIES OF THE TWO PARENT COMPANIES WHICH WOULD HAVE BEEN UNNECESSARY IF THE PARTIES HAD CEASED TO BE ABLE TO COMPETE WITH EACH OTHER .
THE REVERSIBLE NATURE OF THE JOINT VENTURE IS CONFIRMED BY THE PROVISIONS IN THE AGREEMENT RELATING TO THE CONDITIONS TO BE APPLIED ON TERMINATION AND FURTHER FROM THE FACT THAT THE AGREEMENT HAS BEEN MADE FOR A PERIOD OF ONLY FIVE YEARS . ALTHOUGH THE AGREEMENT CAN BE RENEWED AND MAY THEREFORE CREATE A MORE DURABLE ASSOCIATION , THE TWO PARTIES RETAIN THE RIGHT TO TERMINATE THE AGREEMENT AND TO REVERT TO FULLY INDEPENDENT STATUS ; HENCE THEY REMAIN ACTUAL OR AT LEAST POTENTIAL COMPETITORS .
6 . THE AGREEMENT HAS THE OBJECT AND EFFECT OF RESTRICTING AND DISTORTING COMPETITION WITHIN THE COMMON MARKET .
EACH PARTY CONTROLS 50 % OF THE ASSETS OF THE JOINT VENTURE , AND IT IS CLEAR FROM THIS FACT , AS FROM THE WORDING OF THE AGREEMENT , THAT THE CONSENT OF BOTH PARTIES IS REQUIRED FOR ANY MAJOR DECISION CONCERNING THE ACTIVITIES OF THE JOINT VENTURE . A NUMBER OF ANTI-COMPETITIVE CONSEQUENCES FLOW FROM THIS BY REASON OF THE CONSULTATIONS WHICH WILL INEVITABLY HAVE TO TAKE PLACE BETWEEN THE TWO PARTIES WITHIN THE JOINT VENTURE . EVEN IF AN INCREASE IN COMPETITION BETWEEN THE JOINT VENTURE AND OTHER COMPANIES IN BUSINESS ON THE RELEVANT MARKET RESULTS FROM THE AGREEMENT , THE EFFECT OF THE AGREEMENT IS TO ELIMINATE COMPETITION BETWEEN THE TWO PARTIES ON THE SAME MARKETS , BOTH AS REGARDS RESEARCH AND AS REGARDS PRODUCTION AND MARKETING . THE TWO COMPANIES HAVE THEREFORE DEPRIVED THEMSELVES OF THE OPPORTUNITY FOR AUTONOMOUS COSTING AND PRICING , WHICH WOULD BE AVAILABLE IF THEIR ACTIVITIES WERE SEPARATE . BY EXCHANGING INFORMATION CONNECTED WITH THEIR COMPETITIVE ABILITY THEY NOT ONLY DESTROY THE INDEPENDENCE OF THEIR MARKET CONDUCT BUT ALSO REMOVE UNCERTAINTY AS REGARDS THEIR FUTURE BEHAVIOUR TOWARDS THEIR COMPETITORS . THE POOLING OF A PART OF THEIR ACTIVITIES ALTERS THE SUPPLY STRUCTURE ON THE RELEVANT MARKETS , AS CONSUMERS WILL NO LONGER BE ABLE TO CHOOSE BETWEEN TWO INDEPENDENT SUPPLIERS .
7 . THE AGREEMENT CONTAINS FURTHER RESTRICTIONS . FOR THE DURATION OF THE AGREEMENT CERTAIN CUSTOMERS WILL , AS A RESULT OF THE EXCLUSIVE LICENSING AGREEMENTS ENTERED INTO IN CONNECTION WITH THE JVA , NO LONGER BE ABLE TO CHOOSE BETWEEN THE TWO PARTIES . BY THESE LICENCES THE BUSINESS OF DE LAVAL-STORK REMAINS CONFINED EXCLUSIVELY TO CASES WHERE BOTH THE CUSTOMER ' S PLACE OF BUSINESS AND THE PLACE OF DELIVERY ARE WITHIN A SPECIFIC TERRITORY , WHICH INCLUDES ALL THE MEMBER STATES OF THE EEC . SUCH A CUSTOMER ' S SCOPE FOR CHOICE IS THUS SUBSTANTIALLY RESTRICTED BY THE FACT THAT THE