RENNET PURCHASED FROM THE COOPERATIVE OVER THE PREVIOUS FIVE YEARS ' MEMBERSHIP .
4 ACCORDING TO THE CONTESTED DECISION THE COOPERATIVE MANUFACTURES 100% OF NETHERLANDS RENNET OUTPUT AND APPROXIMATELY 90% OF THE OUTPUT OF COLOURING AGENTS FOR CHEESE , AND SUPPLIES 94% OF ITS RENNET OUTPUT AND 80% OF ITS COLOURING AGENT OUTPUT TO ITS MEMBERS WHICH , ACCORDING TO THE COMMISSION , REPRESENT MORE THAN 90% OF THE NETHERLANDS DAIRY-PRODUCTS INDUSTRY . THE REMAINDER OF THE OUTPUT IS SOLD TO NON-MEMBER NETHERLANDS CHEESE-MAKERS . AS REGARDS INTRA-COMMUNITY TRADE IN RENNET , INCLUDING SYNTHETIC RENNET , THE DECISION STATES THAT BETWEEN 1976 AND 1978 THE NETHERLANDS IMPORTED 16 TONNES OF RENNET FROM OTHER MEMBER STATE WHILST THE OTHER MEMBER STATES , BELGIUM AND LUXEMBOURG BEING TREATED AS ONE MARKET , IMPORTED QUANTITIES FROM 113 TO 745 TONNES . FINALLY , IT MAY BE SEEN FROM THE DECISION THAT THE VALUE OF THE COOPERATIVE ' S OUTPUT OF COLOURING AGENTS IS MINIMAL COMPARED TO THAT OF ITS RENNET OUTPUT WHICH IN 1978 WAS 830 000 LITRES .
5 IN THE DECISION THE COMMISSION ' S FINDING AS TO THE APPLICATION OF ARTICLE 85 ( 1 ) IS THAT BOTH THE EXCLUSIVE PURCHASING OBLIGATION , WHICH IS ENFORCED BY THE THREAT OF A FINE AND REINFORCED BY POSSIBLE EXPULSION AND THE PAYMENT OF A SUM FOR INFRINGEMENT OF THAT OBLIGATION , AND THE OBLIGATION TO PAY AN EQUIVALENT SUM IN THE EVENT OF RESIGNATION , APPRECIABLY RESTRICT COMPETITION WITHIN THE COMMON MARKET AND ARE LIABLE TO AFFECT APPRECIABLY TRADE BETWEEN MEMBER STATES AS THEIR EFFECT IS TO PREVENT THE COOPERATIVE ' S MEMBERS , WHICH REPRESENT OVER 90% OF THE NETHERLANDS DAIRY PRODUCTS INDUSTRY , FROM PURCHASING THE PRODUCTS IN QUESTION FROM OTHER SUPPLIERS LOCATED , IN PARTICULAR , IN OTHER MEMBER STATES .
6 THE COMMISSION ACCEPTS IN THE DECISION THAT THE FIRST TWO CONDITIONS CONTAINED IN ARTICLE 85 ( 3 ) ARE FULFILLED BECAUSE THE FORMING OF THE COOPERATIVE HAS CONTRIBUTED TO IMPROVING THE PRODUCTION AND DISTRIBUTION OF THE PRODUCTS IN QUESTION WHILE ALLOWING CONSUMERS A FAIR SHARE OF THE RESULTING BENEFIT . THE THIRD AND FOURTH CONDITIONS ARE NOT MET , HOWEVER , FIRST BECAUSE THERE ARE LESS RESTRICTIVE SOLUTIONS FOR ATTAINING THE ADVANTAGES OBTAINED BY THE COOPERATIVE , SUCH AS , FOR EXAMPLE , AN OBLIGATION TO PURCHASE A LIMITED QUANTITY OF PRODUCTS , OR AN OBLIGATION TO GIVE NOTICE OF WITHDRAWAL AND , SECONDLY , BECAUSE COMPETITION IS VIRTUALLY ELIMINATED ON ALMOST THE WHOLE OF THE NETHERLANDS MARKET IN THE PRODUCTS IN QUESTION .
7 THE DECISION RULES OUT THE APPLICATION OF REGULATION NO 26/62 OF THE COUNCIL OF 4 APRIL 1962 APPLYING CERTAIN RULES OF COMPETITION TO PRODUCTION OF AND TRADE IN AGRICULTURAL PRODUCTS ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1959-1962 , P . 129 ) ON THE GROUND THAT THE SCOPE OF THAT REGULATION IS DETERMINED BY ANNEX II TO THE TREATY IN WHICH RENNET IS NOT LISTED .
8 IN SUPPORT OF ITS