- FRENCH AND DUTCH SOLE DISTRIBUTORS WERE ALLOWED TO SELL ONLY TO THOSE DEALERS IN GERMANY WHO HAD ENTERED INTO RESALE PRICE MAINTENANCE AGREEMENTS WITH JUNGHANS . THEY WERE ALSO TO IMPOSE SUCH AN OBLIGATION ON ANY OF THEIR CUSTOMERS WHO WERE LIKELY TO RE-EXPORT TO GERMANY .
- GERMAN RETAILERS WERE ALLOWED TO SELL TO CUSTOMERS IN OTHER EEC COUNTRIES ONLY AT THE PRICES FIXED FOR GERMANY AND THEY WERE REQUIRED TO OBSERVE THE FIXED PRICE EVEN WHEN RESELLING GOODS WHICH THEY HAD REIMPORTED FROM OTHER COMMUNITY COUNTRIES .
- BELGIAN " SOLE DISTRIBUTORS " WERE PROHIBITED FROM SUPPLYING OTHER JUNGHANS WHOLESALERS ( PROHIBITION ON HORIZONTAL SUPPLIES ) AND FROM SELLING DIRECT TO TRADE CUSTOMERS .
- RETAILERS IN BELGIUM , FRANCE , ITALY AND LUXEMBOURG WERE PROHIBITED FROM SUPPLYING WHOLESALERS OR SOLE DISTRIBUTORS ( PROHIBITION ON RETURN SUPPLIES ) .
( C ) ONLY THOSE UNDERTAKINGS HAVING AS PROPRIETOR OR MANAGER A CLOCK AND WATCH SPECIALIST COULD BE APPOINTED AS JUNGHANS RETAILERS . THIS MEANT THAT THROUGHOUT THE COMMUNITY THE SUPPLY OF JUNGHANS CLOCKS AND WATCHES WAS GENERALLY DENIED TO SUPERMARKETS , DEPARTMENT STORES AND ESTABLISHMENTS USING SIMILAR DISTRIBUTION TECHNIQUES .
18 . THE CLAUSES SET OUT ABOVE DID NOT SATISFY THE CONDITIONS OF EXEMPTION UNDER ARTICLE 85 ( 3 ) OF THE EEC TREATY . THEY BROUGHT ABOUT NO PERCEPTIBLE OBJECTIVE IMPROVEMENT IN THE PRODUCTION OR DISTRIBUTION OF GOODS SUCH AS WOULD COMPENSATE FOR THEIR ADVERSE EFFECT ON COMPETITION AND FREEDOM OF TRADE IN THE COMMON MARKET , WHILE IN ADDITION THEY DENIED THE CONSUMER A FAIR SHARE OF THE BENEFIT WHICH CAN BE DERIVED FROM DISTRIBUTION AGREEMENTS . THE PROHIBITIONS AND RESTRICTIONS ON EXPORTS PREVENTED JUNGHANS DEALERS AND THE CONSUMER FROM OBTAINING THE GOODS IN QUESTION FROM OTHER COMMUNITY COUNTRIES . IN THIS WAY WAS TERRITORIAL PROTECTION ACHIEVED ENABLING CONSUMER PRICES TO VARY FROM ONE MEMBER STATE TO ANOTHER . THE EXTENSION OF GERMAN RESALE PRICE MAINTENANCE TO GOODS EXPORTED AND REIMPORTED PREVENTED JUNGHANS DEALERS FROM SUPPLYING CUSTOMERS , AND PARTICULARLY THE CONSUMER , AT PRICES MORE FAVOURABLE THAN THOSE FIXED IN GERMANY . THE EXCLUSION OF SUPERMARKETS AND DEPARTMENT STORES MEANT THAT SHOPS WHICH HAD TRADITIONALLY SOLD GOODS TO THE CONSUMER AT LOW PRICES COULD NOT DEAL IN JUNGHANS CLOCKS AND WATCHES .
19 . THE JUNGHANS DISTRIBUTION SYSTEM , IN ITS PRESENT FORM , ENABLES JUNGHANS DEALERS TO OPERATE IN THE FOLLOWING WAYS :
( A ) WHOLESALERS AND SOLE DISTRIBUTORS MAY SELL JUNGHANS AND DIEHL CLOCKS AND WATCHES NOT ONLY TO ALL RETAILERS IN THE COMMON MARKET BUT ALSO TO OTHER WHOLESALERS AND SOLE DISTRIBUTORS AND TO THE CONSUMER BY MEANS OF DIRECT SALES THROUGHOUT THE EEC .
( B ) SPECIALIST JUNGHANS RETAILERS ARE ENTITLED TO SUPPLY JUNGHANS AND DIEHL CLOCKS AND WATCHES NOT ONLY TO ALL CONSUMERS THROUGHOUT THE COMMON MARKET BUT ALSO TO ANY OTHER JUNGHANS RETAILERS , AND ANY JUNGHANS WHOLESALER OR SOLE DISTRIBUTOR IN THE EEC .
( C ) JUNGHANS DEALERS , I.E . JUNGHANS WHOLESALERS ,