BY THE EFFECT OF ARTICLE 6 ( 1 ) ( B ) OF DECISION 1831/81 .
21 THE EXPLANATIONS SUPPLIED IN THE COURSE OF PROCEEDINGS DISCLOSE THAT , BY AMENDING THE SYSTEM IN THAT WAY , THE COMMISSION INTENDED TO DEFINE THE BASIS OF CALCULATION USED FOR DETERMINING REFERENCE PRODUCTION FIGURES IN A MORE EQUITABLE MANNER FOR ALL THE UNDERTAKINGS IN THE COMMUNITY , BY DINT OF TAKING INTO CONSIDERATION THEREAFTER , BOTH A PRODUCTION PERIOD PRIOR TO THE CRISIS AND A PERIOD CLOSE TO THE INTRODUCTION OF THE SYSTEM OF PRODUCTION QUOTAS . THE COMMISSION CONSIDERS THAT AS A RESULT OF A BETTER ADJUSTMENT OF THE CRITERIA UNDERLYING THE DETERMINATION OF QUOTAS TO THE ACTUAL SITUATION OF UNDERTAKINGS , THERE WAS NO FURTHER PURPOSE IN RESORTING TO PRODUCTIVE CAPACITY AS A CORRECTIVE OF THE REFERENCE-PRODUCTION FIGURES UNDER THE SYSTEM LAID DOWN BY THE EARLIER DECISION . WHILE RETAINING , FOR THOSE UNDERTAKINGS WHICH BENEFITED FROM THE CORRECTIVE , PART OF THE ADVANTAGE THEREBY OBTAINED , THE COMMISSION ACCENTUATED ITS EFFECTS BY VIRTUE OF THE ARITHMETICAL MEAN OF THE TWO FACTORS TAKEN INTO CONSIDERATION BY ARTICLE 6 ( 1 ) OF DECISION 1831/81 .
22 IN THAT CONTEXT THE COMMISSION EXPLAINS THAT , IN THE LIGHT OF EXPERIENCE , IT APPEARED THAT THE EFFECT OF THE CORRECTIVE UNDER ARTICLE 4 ( 3 ) OF DECISION 2794/80 WAS TO CONFER AN UNJUSTIFIED ADVANTAGE ON UNDERTAKINGS CHARACTERIZED BY AN OPERATING RATE BELOW THE COMMUNITY AVERAGE , TO THE DETRIMENT OF THE OTHER UNDERTAKINGS . IT NOTES THAT THE APPLICANT DERIVED GREATER BENEFIT FROM THAT PROVISION THAN ANY OTHER UNDERTAKING . THE OBJECTIVE OF THE NEW DECISION WAS PRECISELY TO LESSEN THAT ADVANTAGE IN ORDER TO DO JUSTICE TO PROTESTS FROM OTHER LESS-FAVOURED UNDERTAKINGS . THE COMMISSION DENIES THAT THE TREATMENT OF THE APPLICANT UNDER THE NEW DECISION MAY BE DESCRIBED AS CAUSING ITS PREVIOUS POSITION TO ' ' DETERIORATE ' ' ; THE NEW DECISION MEANS MERELY PARTIAL WITHDRAWAL OF AN UNJUSTIFIED ADVANTAGE .
23 THE COMMISSION CONSIDERS THAT , BY RE-DEFINING THE DETAILED RULES GOVERNING THE CALCULATION OF PRODUCTION QUOTAS , IT HAS MOVED CLOSER TO ESTABLISHING AN ' ' EQUITABLE BASIS ' ' FOR ALL COMMUNITY UNDERTAKINGS . IN THAT CONNECTION IT EMPHASIZES , WHILST RECALLING THE REASONING SET OUT IN CASE 119/81 , THAT A SYSTEM OF PRODUCTION QUOTAS SET UP BY VIRTUE OF ARTICLE 58 MUST NECESSARILY BE BASED ON UNDERTAKINGS ' ACTUAL PRODUCTION AND NOT ON THEIR PRODUCTIVE CAPACITY . AN EXAMINATION OF CAPACITY AFFORDS NO INDICATION AS TO ACTUAL OUTPUT AND IS THEREFORE NOT CAPABLE OF FURNISHING A MORE USEFUL CRITERION FOR THE PURPOSE OF ADAPTING THAT OUTPUT TO THE DECLINE IN DEMAND .
24 AS THE COURT OBSERVED IN ITS JUDGMENT OF 7 JULY 1982 , IT CANNOT REASONABLY BE DENIED THAT THE COMMISSION ' S CHOICE OF THE CRITERION OF ACTUAL PRODUCTION ACCORDS WITH ARTICLE 58 ( 2 ) OF THE TREATY , WHICH REQUIRES THAT QUOTAS SHALL BE DETERMINED ON AN ' '