THE COMPANIES CONCERNED WILL THEREFORE BE REQUIRED TO REPORT ANNUALLY TO THE COMMISSION ON THE SAVINGS MADE AND ON THE REASONS FOR THEM .
20 . IT MAY ACCORDINGLY BE CONCLUDED THAT THE AGREEMENTS FOR PRODUCTION SPECIALIZATION AND FOR ALLOCATION OF ORDERS IN RELATION TO THE PRODUCTS COVERED BY THE AGREEMENTS MAY MAKE FOR A SUBSTANTIAL IMPROVEMENT IN PRODUCTION AND DISTRIBUTION .
21 . THE SAID AGREEMENTS ARE THE INDISPENSABLE MEANS OF ATTAINING THESE OBJECTS - THE IMPROVEMENT OF PRODUCTION AND DISTRIBUTION - AND ARE NO MORE RESTRICTIVE THAN IS NECESSARY FOR THAT PURPOSE . ACTING INDIVIDUALLY THE COMPANIES CONCERNED COULD NOT ATTAIN THIS IMPROVEMENT , OR AT LEAST THE SAME DEGREE OF IMPROVEMENT .
22 . THE UNDERTAKING ENTERED INTO BY THE COMPANIES CONCERNED TO INFORM AND CONFER WITH EACH OTHER ON INVESTMENT PLANS FOR THE PRODUCTS COVERED BY THE AGREEMENTS IS UNOBJECTIONABLE IN THE CONTEXT OF SPECIALIZATION AGREEMENTS , SINCE EACH COMPANY REMAINS FREE TO TAKE ITS OWN BUSINESS DECISIONS REGARDLESS OF WHAT THE OTHERS THINK .
23 . UNDER THE AGREEMENT , TO SAFEGUARD THE OBJECTIVES OF SPECIALIZATION , THE COMPANIES MAY GIVE QUANTITATIVE OF FINANCIAL COMPENSATION WHERE MAJOR CHANGES IN MARKET CONDITIONS OR PRODUCTION TECHNIQUES RESULT IN CIRCUMSTANCES DIFFERING SUBSTANTIALLY FROM THOSE OBTAINING AT THE TIME OF THE CONTRACT .
THIS IS JUSTIFIED IN THAT THE PARTIES CANNOT TELL EXACTLY HOW THE MARKET FOR EACH PRODUCT WILL DEVELOP DURING THE CURRENCY OF THE AGREEMENTS . WHERE CIRCUMSTANCES CHANGE CONSIDERABLY , THEY MUST BE IN A POSITION TO ADAPT THE SPECIALIZATION AGREEMENTS IN RESPECT OF EACH PRODUCT , SPECIFICATION , DIMENSION AND QUALITY ; THEY MUST THEREFORE BE IN A POSITION TO OFFSET THE ECONOMIC IMPLICATIONS OF ANY SUCH CHANGE IN CIRCUMSTANCES THROUGH QUANTITATIVE OR FINANCIAL COMPENSATION . SUCH COMPENSATION IS IN ANY EVENT SIMPLY A POSSIBILITY , THERE BEING NO ADVANCE OBLIGATION IMPOSED ON THE PARTNERS . COMPENSATION IS THEREFORE AN INDISPENSABLE COMPONENT OF THE SPECIALIZATION AGREEMENT , AND IS NO MORE RESTRICTIVE THAN IS NECESSARY FOR ITS PURPOSE .
THE AGREEMENTS RELATING TO QUANTITATIVE AND FINANCIAL COMPENSATION DO NOT ALLOW THE COMPANIES CONCERNED TO ESTABLISH A QUOTA SYSTEM ; IF THEY DID , THE RESTRICTION WOULD GO BEYOND WHAT WAS REQUIRED FOR THE SPECIALIZATION AND RATIONALIZATION OBJECTIVES .
THE COMMISSION WOULD BE OBLIGED TO REVOKE ITS AUTHORIZATION IF IT FOUND THAT THE COMPANIES WERE APPLYING QUOTAS OR THAT THIS AGREEMENT WAS SUBSTANTIALLY IMPEDING RATIONALIZATION . THE COMMISSION MUST THEREFORE REQUIRE THE COMPANIES TO PROVIDE REGULAR INFORMATION ON THE SCALE OF THE QUANTITATIVE OR FINANCIAL COMPENSATION GIVEN .
24 . THE AGREEMENTS THEREFORE SATISFY THE TESTS OF ARTICLE 65 ( 2 ) ( A ) AND ( B ) .
V
25 . TO ASCERTAIN WHETHER THE AGREEMENTS FOR WHICH AUTHORIZATION IS REQUESTED SATISFY THE TESTS OF ARTICLE 65 ( 2 ) ( C ) , THE FOLLOWING POINTS MUST BE CONSIDERED .
26 . FKH ANS SSW ON THE ONE HAND AND KW AND MH ON THE OTHER EACH CONSTITUTE A CONCENTRATION FOR THE PURPOSE