AS A RESULT OF THIS EXTREMELY LOW SHARE , IT HAD SO FAR BEEN POSSIBLE FOR ATF " TO MAINTAIN A UNIFORMLY HIGH PRICE LEVEL FOR TELEFUNKEN PRODUCTS , WHICH IS VIEWED FAVOURABLY BY THE SPECIALIST TRADE " ( A HIGHER PROFIT MARGIN THAN ON COMPETING PRODUCTS ) . THE RECORD GOES ON TO STATE THAT , DESPITE INCREASINGLY DETERMINED INQUIRIES FROM THE DISCOUNT STORES , THEIR REQUESTS HAD SO FAR BEEN TURNED DOWN . IT FURTHER STATES THAT " COOPERATION MUST UNDER ALL CIRCUMSTANCES AGAIN BE AVOIDED IN 1978 " ( PROFIT MARGIN WITH THE SPECIALIST TRADE , LOWER RETURNS WITH DISCOUNT STORES ) .
( 21 ) A TFR INTERNAL MEMO DATED 1 SEPTEMBER 1978 CONCERNING THE FRENCH MARKET STATES THAT " OUT AND OUT DISCOUNTERS HAVE SO FAR DELIBERATELY NOT BEEN SUPPLIED FOR REASONS OF PRICING POLICY " .
( 22 ) ON 12 JANUARY 1979 THE ATF SALES MANAGER WROTE TO TFR TO INFORM IT THAT ATF NOW PLANNED IN THE MEDIUM TERM TO GRADUALLY RELAX ITS POLICY TOWARDS MODERN SALES OUTLETS . THIS LETTER FURTHER STATES THAT " WE MUST DECIDE WHETHER WE SHOULD SIGN DISTRIBUTION CONTRACTS WITH SUCH POTENTIAL SALES OUTLETS AS CONFORAMA , CARREFOUR , ETC . " . THIS LETTER ALSO REVEALS THAT " TELEFUNKEN PRODUCTS ARE BETWEEN FF 570 AND 770 DEARER THAN COMPARABLE COMPETING PRODUCTS " . IT GOES ON TO STATE THAT " WE REALIZE THAT THE PROBLEMS OF THE HIGH PRICE POLICY ARE CONNECTED WITH THOSE OF SALES OUTLETS ( DISCOUNT STORES ) " .
( B ) INDIVIDUAL CASES
AUCHAN
( 23 ) AN ATF MEMO DATED 21 MARCH 1978 STATES THAT AUCHAN IS ONE OF THE KEENEST DISCOUNTERS WHOSE ORDERS ATF HAS HITHERTO IGNORED . NOW , HOWEVER , ATF HAD RECEIVED A FORMAL REQUEST FOR SUPPLIES FROM AUCHAN SO THAT ATF WAS FACED FOR THE FIRST TIME WITH THE PROBLEM OF REFUSING TO SELL . THIS MEMO FURTHER STATES THAT " THE SUPPLYING OF TELEFUNKEN EQUIPMENT TO AUCHAN WOULD BE EXTREMELY DANGEROUS AND WOULD JEOPARDIZE OUR WHOLE YEAR'S WORK " .
( 24 ) OWING TO THE PRESSURE EXERTED BY AUCHAN ON ATF , TALKS WERE HELD ON 18 OCTOBER 1978 CONCERNING AUCHAN'S INCLUSION IN THE DISTRIBUTION NETWORK . AN ATF MEMO DATED 20 OCTOBER 1978 STATES THAT " ( AUCHAN ) WOULD BE WILLING ... IN EXCHANGE FOR OUR DELIVERIES ... TO WITHDRAW ALL PRESS ADVERTISEMENTS FEATURING OUR TELEVISION SETS AND TO ADHERE TO OUR RECOMMENDED PRICES , ON CONDITION THAT IN THE TOWN WHERE THE PRODUCTS ARE SOLD NO SHOP OF A SIMILAR KIND CHARGES LOWER PRICES ... " . AUCHAN WAS SUBSEQUENTLY ADMITTED TO THE AEG DISTRIBUTION NETWORK ON 3 NOVEMBER 1978 .
AUCHAN'S UNDERTAKING TO ADHERE TO THE TFR PRICE RECOMMENDATIONS WAS CLEARLY SUFFICIENT FOR IT TO BE SUPPLIED WITH PRODUCTS COVERED BY THE AGREEMENT . BY AUGUST 1980 TFR HAD SOLD SOME 700 TELEVISION SETS TO AUCHAN .
MAMMOUTH ( TOULOUSE )
( 25 ) AN ATF INTERNAL MEMO DATED