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 ATTENUATED ITS EFFECTS BY VIRTUE OF THE ARITHMETICAL MEAN OF THE TWO FACTORS TAKEN INTO CONSIDERATION BY ARTICLE 6 ( 1 ) OF DECISION 1831/81 .
21 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 .
22 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 USEFUL CRITERION FOR THE PURPOSE OF ADAPTING THAT OUTPUT TO THE DECLINE IN DEMAND .
23 AS THE COURT HAS 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 ' ' EQUITABLE BASIS ' ' . THE JUDGMENT STRESSED THAT , UNLIKE THE CRITERION OF PRODUCTIVE CAPACITY , THE APPRAISAL OF WHICH IS BY ITS NATURE UNCERTAIN , REFERENCE TO UNDERTAKINGS ' ACTUAL PRODUCTION HAS THE DOUBLE ADVANTAGE OF AFFORDING AN OBJECTIVE BASIS OF APPRAISAL AND OF ENABLING TOTAL PRODUCTION TO BE REDUCED WITHOUT , HOWEVER , ALTERING THE VARIOUS POSITIONS OF UNDERTAKINGS ON THE MARKET .
24 BY REDUCING THE ADVANTAGE ACCRUING TO CERTAIN UNDERTAKINGS , TO THE DETRIMENT OF OTHERS , FROM TAKING INTO CONSIDERATION AN OPERATING RATE BELOW THE COMMUNITY AVERAGE , AND IN ENDEAVOURING THEREBY TO DISTRIBUTE MORE APPROPRIATELY