WHO IS THE ONLY ONE TO TAKE THE INITIATIVE OF PASSING ON A COST REDUCTION OR REFRAINING FROM PASSING ON A COST INCREASE IS ABLE TO APPLY PRICES WHICH AMPLIFY HIS COST ADVANTAGE .
44 CONSEQUENTLY , FAR FROM RESTRICTING PRICE COMPETITION , THE MULTIPLIER EFFECT TENDS TO STRENGTHEN IT , ESPECIALLY SINCE IN THE NETHERLANDS IT OPERATES WITHOUT RESTRICTION AS REGARDS REDUCTIONS . THAT IS TO SAY , UNLIKE THE BELGIAN LEGISLATURE AT THE TIME OF VAN LANDEWYCK CASE , THE NETHERLANDS LEGISLATURE HAS NOT DECIDED TO IMPOSE A HIGH MINIMUM EXCISE DUTY , WHICH WOULD HAVE ENSURED A CERTAIN LEVEL OF REVENUE AND LIMITED THE MULTIPLIER EFFECT IN THE EVENT OF COST REDUCTIONS .
45 FURTHERMORE , AS THE COURT POINTED OUT IN ITS JUDGMENT OF 29 OCTOBER 1980 ( VAN LANDEWYCK AND OTHERS V COMMISSION , REFERRED TO ABOVE ), THE MULTIPLIER EFFECT DOES NOT OPERATE WHERE , WITHIN A GIVEN PRICE , A MANUFACTURER OR IMPORTER INDIVIDUALLY INCREASES THE SHARE OF WHOLESALERS AND RETAILERS . TO THAT EXTENT COMPETITION ON MARGINS IS POSSIBLE WITHOUT ANY DISTORTION ATTRIBUTABLE TO THE MULTIPLIER EFFECT .
B . THE ARGUMENT THAT THE PROHIBITED AGREEMENTS DID NOT AFFECT TRADE BETWEEN MEMBER STATES
46 THE APPLICANTS CONSIDER THAT THEIR AGREEMENTS DID NOT AFFECT TRADE BETWEEN MEMBER STATES FOR THE PURPOSES OF ARTICLE 85 ( 1 ) OF THE TREATY . FIRST OF ALL , ONCE A TAX STAMP HAS BEEN AFFIXED TO TOBACCO PRODUCTS , THEY CAN NO LONGER BE EXPORTED TO ANOTHER MEMBER STATE . FURTHERMORE , TOBACCO PRODUCTS TO WHICH TAX STAMPS HAVE NOT YET BEEN AFFIXED ARE INDEED TRANSFERRED BETWEEN UNDERTAKINGS BELONGING TO THE SAME GROUP . HOWEVER , SINCE IN THAT CASE THEY HAVE NOT YET BEEN PLACED ON THE MARKET IN A MEMBER STATE AGREEMENTS CONCERNING THEM ARE NOT LIKELY TO AFFECT TRADE BETWEEN MEMBER STATES .
47 ACCORDING TO THE COMMISSION , ARTICLE 85 OF THE TREATY DOES NOT REQUIRE THAT TRADE BETWEEN MEMBER STATES SHOULD BE RESTRICTED BUT MERELY THAT THE DISTORTION OF COMPETITION SHOULD BE LIKELY TO AFFECT SUCH TRADE , IF NOT DIRECTLY , THEN AT LEAST ACTUALLY OR POTENTIALLY . THE PARTIES TO THE AGREEMENTS AND PRACTICES IN QUESTION ACCOUNT FOR 90% OF THE NETHERLANDS MARKET AND A LARGE PROPORTION OF IMPORTS BETWEEN MEMBER STATES . IN THOSE CIRCUMSTANCES , AND IN THE LIGHT OF PARAGRAPHS 170 TO 172 OF THE JUDGMENT OF 29 OCTOBER 1980 ( VAN LANDEWYCK AND OTHERS V COMMISSION , REFERRED TO ABOVE ), IT SEEMS DIFFICULT , ACCORDING TO THE COMMISSION , TO ASSERT THAT THE CONDITION THAT TRADE BETWEEN MEMBER STATES SHOULD HAVE BEEN AFFECTED HAS NOT BEEN FULFILLED .
48 AS THE COURT HELD IN ITS JUDGMENT OF 30 JUNE 1966 ( SOCIETE TECHNIQUE MINIERE V MASCHINENBAU ULM GMBH CASE 56/65 ( 1966 ) ECR 235 ), FOR AN AGREEMENT TO BE CONSIDERED LIKELY TO AFFECT TRADE BETWEEN MEMBER STATES ' IT MUST BE POSSIBLE TO FORESEE WITH A SUFFICIENT DEGREE OF PROBABILITY ON THE