ACCORDING TO THEIR NEEDS ;
4 . WHEREAS THE MEMBER FIRMS UNDERTAKE TO ABSTAIN FROM ALL COMMERCIAL ACTIVITY INCOMPATIBLE WITH THE SLJ'S OR COMPETING WITH IT ;
5 . WHEREAS THE AGREEMENT IS VALID FOR FIFTEEN YEARS ;
II
6 . WHEREAS THE AGREEMENT IN QUESTION DISTORTS NORMAL COMPETITION BETWEEN THE MEMBER FIRMS FOR THE FOLLOWING REASONS :
- THROUGH SLJ THEY OBTAIN SUPPLIES OF ROLLED STEELS AT UNIFORM CONDITIONS AND PRICES WHICH DIFFER FROM THOSE WHICH EACH COULD OBTAIN SEPARATELY ;
- THEY AGREE NOT TO KEEP INDIVIDUAL STOCKS OF CERTAIN STEEL PRODUCTS ;
- THEY AGREE NOT TO EQUIP THEMSELVES FOR CUTTING UP COILS AND SHEET ;
- THEY AGREE TO ABSTAIN FROM ALL ACTIVITY COMPETING WITH THE SLJ'S ;
7 . WHEREAS , UNDER THESE CIRCUMSTANCES , THE AGREEMENT IN QUESTION COMES UNDER THE BAN OF WHICH THE PRINCIPLE IS STATED IN ARTICLE 65 ( 1 ) OF THE TREATY ;
8 . WHEREAS , NEVERTHELESS , ACCORDING TO ARTICLE 65 ( 2 ) , SPECIALIZATION AGREEMENTS , JOINT-BUYING OR JOINT-SELLING AGREEMENTS AND AGREEMENTS STRICTLY ANALOGOUS IN NATURE AND EFFECT MAY BE AUTHORIZED IF THE COMMISSION IS SATISFIED THAT THEY MEET THE BODY OF REQUIREMENTS LAID DOWN ;
9 . WHEREAS THE AGREEMENT IN QUESTION HAS SET UP A JOINT-BUYING ORGANIZATION FOR STEEL PRODUCTS ; WHEREAS SLJ'S CUTTING-UP ACTIVITY MAY BE CONSIDERED AS A SPECIALIZATION OF THE JOINT VENTURE IN AN ACTIVITY NO LONGER EXERCISED BY THE MEMBER FIRMS ; WHEREAS THIS AGREEMENT MAY THEREFORE BE AUTHORIZED UNDER ARTICLE 65 ( 2 ) IF AND IN SO FAR AS IT MAKES FOR A SUBSTANTIAL IMPROVEMENT IN PRODUCTION OR DISTRIBUTION AND IF IT IS ESSENTIAL IN ORDER TO ACHIEVE THOSE RESULTS , WHILE NOT BEING MORE RESTRICTIVE THAN IS NECESSARY FOR THAT PURPOSE ; WHEREAS , MOREOVER , IT MUST NOT BE LIABLE TO GIVE THE UNDERTAKING CONCERNED THE POWER TO DETERMINE THE PRICES , OR TO CONTROL OR RESTRICT THE PRODUCTION OR MARKETING OF A SUBSTANTIAL PART OF THE PRODUCTS IN QUESTION WITHIN THE COMMON MARKET , OR TO SHIELD THEM AGAINST EFFECTIVE COMPETITION FROM OTHER UNDERTAKINGS WITHIN THE COMMON MARKET ;
III
10 . WHEREAS THE GROUPING TOGETHER OF THE STEEL PURCHASES OF THE TEN FIRMS HAS PERMITTED THEM TO OBTAIN BETTER PRICES AND CONDITIONS FROM STEEL WORKS ; WHEREAS THE CREATION OF A SINGLE STOCKPILE HAS PERMITTED SUBSTANTIAL ECONOMIES BOTH IN CAPITAL EXPENDITURE AND IN ADMINISTRATIVE COSTS ; WHEREAS THE CUTTING-UP DONE BY THE SLJ REPRESENTS A USEFUL SERVICE TO THE MEMBER FIRMS , WHICH HAVE BEEN ABLE TO SAVE THE INVESTMENTS NECESSARY FOR EQUIPPING THEMSELVES FOR SUCH A PURPOSE ; WHEREAS THE OVERALL RESULT OF THESE ADVANTAGES HAS BEEN AN IMPROVEMENT IN THE SUPPLY CONDITIONS OF THE FIRMS , AND HENCE A SIGNIFICANT IMPROVEMENT IN THE DISTRIBUTION OF THE PRODUCTS IN QUESTION ;
11 . WHEREAS THESE IMPROVEMENTS CANNOT BE ACHIEVED ON THE SAME SCALE BY INDIVIDUAL PROCUREMENT AND STORAGE OF STEEL BY EACH OF THE FIRMS CONCERNED ; WHEREAS THE CLAUSE OF NONCOMPETITION