IN PARAGRAPH 88 OF THE DECISION THE COMMISSION CONSIDERS THAT IT IS NOT POSSIBLE TO SUSTAIN THE CLAIM OF FEDETAB AND THE FIRMS INVOLVED TO THE EFFECT THAT THE MEASURES PRIOR TO THE RECOMMENDATION DID NOT CONSTITUTE SIGNIFICANT RESTRICTIONS ON COMPETITION BECAUSE THE BELGIAN GOVERNMENT LEVIES HEAVY TAXES AND REQUIRES NOTIFICATION OF THE RESALE PRICES AND PROFIT MARGINS FOR TOBACCO PRODUCTS SO THAT COMPETITION IS ALREADY SUBSTANTIALLY RESTRICTED AND UNIFORM CONDUCT IS IMPOSED ON ALL THE FIRMS OPERATING ON THE MARKET . IT ADDS THAT IF NATIONAL LEGISLATION HAS THE EFFECT OF RESTRICTING COMPETITION , THE ADDED EFFECTS OF PRIVATE ARRANGEMENTS RESTRICTING COMPETITION CAN ONLY BE THE MORE SIGNIFICANT .
125 IN PARAGRAPH 105 OF THE DECISION THE COMMISSION CITES THE SAME REASONING TO REJECT THE ARGUMENT THAT ' ' THE RESTRICTIONS ON COMPETITION FLOWING FROM THE RECOMMENDATION WERE NOT APPRECIABLE BY REASON OF STATE INTERVENTION IN THE TOBACCO INDUSTRY ' ' .
126 IT IS THEREFORE NECESSARY TO CONSIDER IN THE FIRST PLACE WHETHER , CONTRARY TO THE COMMISSION ' S ARGUMENT , THE BELGIAN RULES AND THEIR APPLICATION , AS DESCRIBED ABOVE , HAVE AS THEIR EFFECT EITHER TO EXCLUDE , AS THE APPLICANTS MAINTAIN , THE OPPORTUNITY FOR MANUFACTURERS AND IMPORTERS TO COMPETE SIGNIFICANTLY IN RELATION TO THE MARGINS TO BE ALLOWED TO THE TRADE OR TO CAST SERIOUS DOUBT ON THE EXISTENCE OF SUCH AN OPPORTUNITY . IN BOTH CASES THE COURT WOULD BE LED TO FIND THAT THE CONTESTED COMMISSION DECISION DID NOT CORRECTLY OR SUFFICIENTLY TAKE ACCOUNT OF THE EFFECT OF THE SAID RULES AND THEIR APPLICATION BY THE COMPETENT BELGIAN AUTHORITIES ON THE OPPORTUNITIES FOR COMPETITION BY THOSE IN THE INDUSTRY .
127 IN THAT RESPECT IT IS NECESSARY TO OBSERVE IN THE FIRST PLACE , AS THE PARTIES AGREE , THAT IN A SYSTEM OF BASICALLY PROPORTIONAL EXCISE DUTY , AS APPLICABLE IN BELGIUM , ANY ALTERATION IN THE MANUFACTURERS ' OR IMPORTERS ' SHARE CONTAINED IN THE RETAIL PRICE INVOLVES AN ALTERATION SEVERAL TIMES GREATER IN THE TAX AND THEREFORE IN THE RETAIL PRICE ITSELF WHERE THE SAID ALTERATION IS ADJUSTED SO AS TO BE RECOVERED IN THE PRICE . THAT MULTIPLIER EFFECT IN PRINCIPLE WORKS AS REGARDS BOTH INCREASES AND REDUCTIONS . NEVERTHELESS IN THE LATTER CASE THE DECREASING EFFECT OF THE MULTIPLIER WHICH WORKS IN FAVOUR OF THE CONSUMER IS LIMITED BY THE MINIMUM EXCISE DUTY LAID DOWN BY THE BELGIAN STATE PURSUANT TO COUNCIL DIRECTIVES NOS 72/464 AND 77/805 BY REASON OF THE FACT THAT THE EXCISE DUTY IS FIXED AT 90% OF THE AGGREGATE AMOUNT OF THE PROPORTIONAL AND THE SPECIFIC EXCISE DUTY LEVIED BY THE BELGIAN STATE ON CIGARETTES IN THE MOST POPULAR PRICE CATEGORY .
128 IT FOLLOWS FROM THIS MULTIPLIER EFFECT IN CONJUNCTION WITH THE MINIMUM EXCISE DUTY LEVIED BY THE BELGIAN STATE TO GUARANTEE ITS REVENUE THAT ANY COMPETITIVE EFFORT IN RELATION TO PROFIT MARGINS BY THE MANUFACTURER OR THE IMPORTER HAVING A REPERCUSSION ON THE RETAIL PRICE IS LIMITED .
129 FURTHER