TO A CONGEALING OF THE PRICE STRUCTURE AT THE LEVEL OF THE RETAIL TRADE AND THUS TO THE ELIMINATION OF PRICE COMPETITION .
42 A RESTRICTION OF PRICE COMPETITION MUST HOWEVER BE REGARDED AS BEING INHERENT IN ANY SELECTIVE DISTRIBUTION SYSTEM IN VIEW OF THE FACT THAT PRICES CHARGED BY SPECIALIST TRADERS NECESSARILY REMAIN WITHIN A MUCH NARROWER SPAN THAN THAT WHICH MIGHT BE ENVISAGED IN THE CASE OF COMPETITION BETWEEN SPECIALIST AND NON-SPECIALIST TRADERS . THAT RESTRICTION IS COUNTERBALANCED BY COMPETITION AS REGARDS THE QUALITY OF THE SERVICES SUPPLIED TO CUSTOMERS , WHICH WOULD NOT NORMALLY BE POSSIBLE IN THE ABSENCE OF AN APPROPRIATE PROFIT MARGIN MAKING IT POSSIBLE TO SUPPORT THE HIGHER EXPENSES CONNECTED WITH THOSE SERVICES . THE MAINTENANCE OF A CERTAIN LEVEL OF PRICES IS THEREFORE LAWFUL , BUT ONLY TO THE EXTENT TO WHICH IT IS STRICTLY JUSTIFIED BY THE REQUIREMENTS OF A SYSTEM WITHIN WHICH COMPETITION MUST CONTINUE TO PERFORM THE FUNCTIONS ASSIGNED TO IT BY THE TREATY . IN FACT THE OBJECT OF SUCH A SYSTEM IS SOLELY THE IMPROVEMENT OF COMPETITION IN SO FAR AS IT RELATES TO FACTORS OTHER THAN PRICES AND NOT THE GUARANTEE OF A HIGH PROFIT MARGIN FOR APPROVED RE-SELLERS .
43 AEG WAS THEREFORE NOT JUSTIFIED IN TAKING THE VIEW THAT THE ACCEPTANCE OF AN UNDERTAKING TO CHARGE PRICES MAKING POSSIBLE A SUFFICIENTLY HIGH PROFIT MARGIN CONSTITUTED A LAWFUL CONDITION FOR ADMISSION TO A SELECTIVE DISTRIBUTION SYSTEM . BY THE VERY FACT THAT IT WAS AUTHORIZED NOT TO ADMIT TO AND NOT TO KEEP IN ITS DISTRIBUTION NETWORK TRADERS WHO WERE NOT , OR WERE NO LONGER , IN A POSITION TO PROVIDE SERVICES TYPICAL OF THE SPECIALIST TRADE , IT HAD AT ITS DISPOSAL ALL THE MEANS NECESSARY TO ENABLE IT TO ENSURE THE EFFECTIVE APPLICATION OF THE SYSTEM . IN SUCH CIRCUMSTANCES THE EXISTENCE OF A PRICE UNDERTAKING CONSTITUTES A CONDITION WHICH IS MANIFESTLY FOREIGN TO THE REQUIREMENTS OF A SELECTIVE DISTRIBUTION SYSTEM AND THUS ALSO AFFECTS FREEDOM OF COMPETITION .
C - THE NON-SYSTEMATIC NATURE OF THE CONDUCT TO WHICH THE OBJECTIONS RELATE
44 BY THIS SUBMISSION AEG DENIES THAT IT NORMALLY AND INTENTIONALLY MADE AN IMPROPER USE OF ITS SELECTIVE DISTRIBUTION SYSTEM . IF ACCOUNT IS TAKEN OF THE THOUSANDS OF DISTRIBUTORS WHO APPLY TO BE ADMITTED TO THE SYSTEM OR WHO ARE ALREADY ACTIVE WITHIN IT , IT IS EASY TO UNDERSTAND , ACCORDING TO AEG , THAT VAGARIES ARE INEVITABLE . EVEN ON THE SUPPOSITION THAT THEY WERE INTENTIONAL , A FEW INFREQUENT CASES OF INFRINGEMENT CANNOT IN ANY CASE CALL IN QUESTION A CORRECT APPLICATION OF THE SYSTEM .
45 BEFORE THOSE ARGUMENTS ARE CONSIDERED , IT MUST FIRST BE STATED THAT , AS THE COMMISSION HAS PERTINENTLY OBSERVED , THE SMALL NUMBER OF INFRINGEMENTS WITH WHICH AEG IS CHARGED IN COMPARISON WITH THE WHOLE OF THE CASES IN WHICH THE SYSTEM IS APPLIED DOES NOT BY ITSELF PROVE THE NON-SYSTEMATIC NATURE OF THE INFRINGEMENTS . INDEED , THE GREAT