TO RESTRICT COMPETITION .
1 . INTRODUCTORY OBSERVATIONS
93 FOR THE BETTER APPRECIATION OF THE APPLICANTS ' ARGUMENTS IT IS ADVISABLE IN THE FIRST PLACE TO RECALL THE NATURE AND SCOPE OF THE CONTESTED MEASURES FOR THE PURPOSE OF CONSIDERING THEM IN THE LIGHT OF ARTICLE 85 OF THE TREATY .
( A ) THE CONTESTED MEASURES
( I ) THE PERIOD PRIOR TO 1 DECEMBER 1975
94 AS HAS ALREADY BEEN STATED , IN ARTICLE 1 OF THE DECISION THE COMMISSION LISTS THE MEASURES WHICH IT CONDEMNS AS CONSTITUTING INFRINGEMENTS OF ARTICLE 85 ( 1 ) PRIOR TO 1 DECEMBER 1975 .
95 IN THE FIRST PLACE THERE IS THE APPROVAL AND CLASSIFICATION BY FEDETAB OF WHOLESALERS AND RETAILERS INTO DIFFERENT CATEGORIES ACCORDING TO A CLASSIFICATION MADE BY THE BELGIAN COMMITTEE FOR DISTRIBUTION AND THE ALLOCATION TO THOSE CATEGORIES OF DIFFERENT FIXED PROFIT MARGINS INCLUDING IN PARTICULAR A DIRECT REBATE REPRESENTING THE MAXIMUM MARGIN ALLOWED BY THE BELGIAN MINISTER FOR ECONOMIC AFFAIRS UNDER THE SYSTEM OF NOTIFICATION OF PRICE INCREASES . ACCORDING TO THE COMMISSION , THAT REBATE WAS RETAINED ONLY BY CO-OPERATIVES AND SUPERMARKETS WHICH ACTED ALSO AS RETAILERS SINCE WHOLESALERS PROPERLY SO CALLED HAD TO ALLOW PART OF IT TO THE RETAILERS TO WHOM THEY RESOLD THEIR PRODUCTS . THE RETAILERS , NUMBERING 80 000 IN BELGIUM , WERE ACCORDING TO THE COMMISSION DIVIDED PURSUANT TO AN AGREEMENT MADE ON 29 DECEMBER 1970 BETWEEN FEDETAB AND THE FNCG INTO ' ' APPROVED RETAILERS ' ' ( NUMBERING SOME 2 000 ) AND ' ' NON-APPROVED RETAILERS ' ' , THE LATTER RECEIVING FROM THE WHOLESALER A LESSER PROPORTION OF THE REBATE THAN THAT ALLOWED TO APPROVED RETAILERS .
96 THE COMMISSION THEN POINTS TO A NUMBER OF MEASURES ADOPTED BY FEDETAB AND THE FNCG IN RELATION TO RESALE PRICES . IT DRAWS ATTENTION IN PARTICULAR TO THE AGREEMENT OF 22 MAY 1967 MADE BETWEEN FEDETAB AND THE FNCG ACCORDING TO WHICH WHOLESALERS UNDERTOOK TO RESELL THE MANUFACTURED TOBACCO PRODUCTS AT THE PRICES INDICATED BY THE SUPPLIERS WITHOUT ANY REBATE OR BENEFIT OTHER THAN THE RETAILERS ' MARGIN . PURSUANT TO THE SAME AGREEMENT WHOLESALERS HAVING RETAIL SHOPS UNDERTOOK TO RESELL THE CIGARETTES AT THE RETAIL PRICES STATED ON THE TAX BAND WITHOUT ANY ALLOWANCE TO THE CONSUMER . APPROVED RETAILERS SIGNED A STANDARD AGREEMENT SUBMITTED TO THEM BY FEDETAB CONTAINING A SIMILAR UNDERTAKING . BY AN INTERPRETATIVE SUPPLEMENT DATED 5 OCTOBER 1967 TO THE ABOVE-MENTIONED AGREEMENT FEDETAB AND THE FNCG SPECIFIED THAT WHOLESALERS OPERATING RETAIL SHOPS WERE REGARDED AS UNDERTAKING TO REFUSE TO SUPPLY RETAILERS WHO DID NOT OBSERVE THE PRICE ON THE TAX BAND . BY A FURTHER INTERPRETATIVE SUPPLEMENT OF 29 DECEMBER 1970 SIGNED BY FEDETAB AND THE FNCG THE LATTER UNDERTOOK TO CARRY OUT A STRICT AND SYSTEMATIC CHECK THAT THE AGREEMENTS WERE IMPLEMENTED . ON 30 JUNE 1972 ( THE DATE ON WHICH THE AGREEMENT OF 22 MAY 1967 WOULD IN DUE COURSE HAVE EXPIRED ) FEDETAB SUBMITTED A STANDARD TYPE OF AGREEMENT