IS AN ELECTRICAL ENGINEERING FIRM COMPETING WITH AEI AND RP , BECAUSE IT IS BIG ENOUGH TO ALTER THE STRUCTURE OF THE JOINT VENTURE , BECAUSE BY ACQUIRING 20 % OF THE SHARES BRUSH IS IN A POSITION TO INFLUENCE VIL'S BUSINESS POLICY AND BECAUSE THE AGREEMENT OF 25 MARCH 1970 WAS RADICALLY AMENDED UPON THE ARRIVAL OF BRUSH IN VIL , NOTABLY IN ORDER TO GIVE BRUSH ITS FAIR SHARE OF THE SEATS ON THE BOARD OF DIRECTORS OF THEIR JOINT SUBSIDIARY .
THE COMMISSION CONSIDERS THAT THE CHANGE OF CIRCUMSTANCES WHICH WERE BROUGHT ABOUT BY THAT AGREEMENT WERE BROUGHT ABOUT BY THE PARTIES THEMSELVES , AND THAT THE EARLIER AGREEMENT , THE SUBJECT OF THE COMMISSION DECISION OF 20 JANUARY 1977 , THEREAFTER BECAME INAPPLICABLE .
9 . HAVING REGARD TO THE NATURE AND COMPLEXITY OF THE FACTORS INVOLVED , AS ALREADY REFERRED TO IN THE DECISION AND AS DEMONSTRATED BY THE SLOW RATE OF PROGRESS IN DEVELOPING THE TECHNOLOGY BY VIL , HAVING REGARD TO THE PERIOD CONSIDERED NECESSARY TO MAKE FOR SIGNIFICANT PROGRESS , AND , AT THE SAME TIME , HAVING REGARD TO THE RESTRICTION ON POTENTIAL COMPETITION , A PERIOD OF EXEMPTION TO EXPIRE ON 31 MARCH 1988 APPEARS REASONABLE IN ORDER TO ALLOW THE PROGRAMME OF INVESTMENT AND RESEARCH NOW POSSIBLE TO BE CARRIED THROUGH TO FRUITION .
IT IS TO BE NOTED THAT 31 MARCH 1986 IS THE DATE PRESCRIBED IN THE AGREEMENT AS BEING THE DATE AFTER WHICH ANY OF THE PARTIES CAN WITHDRAW FROM VIL BUT IS THEREAFTER ENTITLED TO THE TECHNICAL SUPPORT OF VIL FOR A PERIOD OF BETWEEN 12 AND 18 MONTHS . THIS PERIOD OF BETWEEN 12 AND 18 MONTHS IS CALCULATED AS BEING THE TIME REQUIRED BY A WITHDRAWING PARTY TO BE CAPABLE OF STARING TO MANUFACTURE VACUUM INTERRUPTERS IN QUANTITIES SUFFICIENT TO SUPPLY ITSELF AND ITS CUSTOMERS .
THE COMMISSION SHOULD IN THE CIRCUMSTANCES OF THIS CASE BE ENABLED TO KEEP THE PROGRESS OF DEVELOPMENT UNDER REVIEW DURING THE PERIOD OF EXEMPTION AND IT IS THEREFORE A CONDITION OF THE EXEMPTION THAT REGULA TECHNICAL REPORTS BE FURNISHED TO THE COMMISSION . SUCH REPORTS WILL BE TREATED ON THE BASIS OF BUSINESS SECRETS . THE PARTIES CONCERNED HAVE NO OBJECTION TO THIS CONDITION .
10 . THE EXEMPTION IS SUBJECT TO AN OBLIGATION TO NOTIFY THE COMMISSION OF :
- ANY CHANGE IN THE STRUCTURE AND SHARE OWNERSHIP OF VIL DURING THE PERIOD OF THE EXEMPTION ,
- ANY AUTHORIZATION GIVEN BY AEI , RP AND BRUSH FOR VIL TO CARRY ON ANY OTHER BUSINESS , WITH FULL PARTICULARS OF SUCH AUTHORIZATION ,
- THE FURNISHING OF ANNUAL REPORTS AND THE FURNISHING OF REGULAR TECHNICAL REPORTS .
HAS ADOPTED THIS DECISION :
ARTICLE 1
THE PROVISIONS OF ARTICLE 85 ( 1 ) OF THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ARE HEREBY , PURSUANT TO ARTICLE 85 ( 3 ) OF THE SAID TREATY , DECLARED INAPPLICABLE TO THE AGREEMENT MADE ON 27 APRIL 1978 BETWEEN