JUNE 1968 ON THE COMMON ORGANIZATION OF THE MARKET IN MILK AND MILK PRODUCTS ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1968 ( I ), P . 176 ) WAS DISREGARDED ; SECONDLY , THAT THE PROHIBITION OF DISCRIMINATION LAID DOWN IN ARTICLE 40 ( 3 ) OF THE TREATY WAS CONTRAVENED ; THIRDLY , THAT THE RIGHT TO PROPERTY AND THE RIGHT TO CARRY ON AN ESTABLISHED BUSINESS WAS INFRINGED AND FOURTHLY THAT THE PRINCIPLE OF THE PROTECTION OF LEGITIMATE EXPECTION WAS DISREGARDED . THE APPLICANT CONTENDS THAT ALL THOSE RULES ARE SUPERIOR RULES OF LAW WHICH THE COMMISSION MUST OBSERVE WHEN ENACTING REGULATIONS .
12 WITH REGARD TO THE FIRST SUBMISSION , THE APPLICANT STATES THAT THE BRINGING BACK INTO FORCE OF REGULATIONS NOS 368/77 AND 443/77 BY REGULATION NO 1753/82 AND THE INSERTION IN THOSE REGULATIONS BY REGULATION NO 2923/82 OF DENATURING FORMULAE WHICH WERE UNSUITABLE FOR PREVENTING SKIMMED-MILK POWDER SOLD UNDER REGULATIONS NOS 368/77 AND 443/77 FROM BEING SUBSTITUTED FOR POWDER SOLD UNDER REGULATION NO 1725/79 LED TO A DESTIBILIZATION OF THE MARKET IN SKIMMED-MILK POWDER FOR USE AS FEED FOR PIGLETS CONTRARY TO THE AIM REFERRED TO IN ARTICLE 39 OF THE TREATY AND DEFINED MORE SPECIFICALLY IN THE FIRST SUBPARAGRAPH OF ARTICLE 7 ( 2 ) OF REGULATION NO 804/68 .
13 THE COMMISSION RESPONDS BY CONTENDING THAT , IN VIEW OF THE LARGE SURPLUSES OF SKIMMED-MILK POWDER AND THE LIMITED MEANS PUT AT ITS DISPOSAL BY THE COUNCIL FOR REDUCING THE LARGE STOCKS HELD BY THE INTERVENTION AGENCIES , IT TOOK THE ONLY COURSE OPEN TO IT BY BRINGING BACK INTO FORCE REGULATIONS NOS 368/77 AND 443/77 ON THE SALE AT A REDUCED PRICE OF SKIMMED-MILK POWDER FOR USE AS PIG AND POULTRY-FEED AND THAT ITS ACTION WAS INTRA VIRES SINCE THE SECOND SUBPARAGRAPH OF ARTICLE 7 ( 2 ) OF REGULATION NO 804/68 EMPOWERS IT TO ADOPT SPECIAL MEASURES TO DISPOSE OF SKIMMED-MILK POWDER WHICH CANNOT BE MARKETED ON NORMAL TERMS DURING A MILK YEAR . THE PARTICULARLY LOW PRICE OF PRODUCTS COMPETING WITH SKIMMED-MILK POWDER ON THE MARKET IN PIG AND POULTRY-FEED , ESPECIALLY THE PRICE OF SOYA IMPORTED FROM THE UNITED STATES , WHICH WAS APPROXIMATELY 17 TO 18 ECU PER TONNE , JUSTIFIED THE FIXING OF THE PRICE OF SKIMMED-MILK POWDER FOR FEEDING TO PIGS AND POULTRY AT APPROXIMATELY 20 ECU PER TONNE .
14 AFTER LEARNING SOME TIME AFTER THE BRINGING BACK INTO FORCE OF REGULATIONS NOS 368/77 AND 443/77 THAT , OWING TO THE DENATURING FORMULAE LAID DOWN IN THOSE REGULATIONS , SKIMMED-MILK POWDER SOLD UNDER THEM WAS BEING INCREASINGLY USED AS A SUBSTITUTE FOR SKIMMED-MILK POWDER SUBSIDIZED UNDER REGULATION NO 1725/79 , IT ADOPTED REGULATION NO 2923/82 BY WHICH NEW DENATURING FORMULAE WERE INSERTED INTO REGULATIONS NOS 368/77 AND 443/77 WITH THE INTENTION OF PREVENTING SUCH SKIMMED-MILK FROM BEING USED IN FEED FOR PIGLETS .
15 THE COMMISSION POINTS OUT THAT IT IS DIFFICULT , IF NOT IMPOSSIBLE , TO FIND A DENATURING METHOD WHICH IS