ITALY . THUS , UNLIKE STEEL UNDERTAKINGS IN OTHER MEMBER STATES AND IN PARTICULAR , THE GERMAN UNDERTAKINGS , THE APPLICANT IS PAYING THE PRICE OF THE OVERALL SURPLUS OF CAPACITY IN THE ECSC , AND THAT IS ALSO AN INFRINGEMENT OF ARTICLE 3 ( G ) OF THE ECSC TREATY .
30 IN THE COMMISSION ' S VIEW , IT IS INCORRECT TO CLAIM THAT THE APPLICANT HAS BEEN PENALIZED BECAUSE IT HAS NOT BEEN ABLE TO RESERVE ITS NATIONAL MARKET FOR ITSELF . IF THE APPLICANT OBTAINED QUOTAS WHICH WERE INSUFFICIENT TO MEET THE NEEDS OF THE ITALIAN MARKET , THAT IS DUE TO THE FACT THAT DURING THE REFERENCE PERIOD ITS PRODUCTION WAS LOWER THAN THAT OF COMPETING UNDERTAKINGS . MOREOVER , BETWEEN 1981 AND 1983 , THE UTILIZATION RATES OF HOT WIDE-STRIP ROLLING MILLS INCREASED IN ITALY AS A RESULT OF THE ADDITIONAL QUOTAS GRANTED TO THE APPLICANT . DURING THE SAME PERIOD , THE GERMAN INDUSTRY ' S RATE OF UTILIZATION DECLINED .
31 IT MUST BE STATED THAT THIS SUBMISSION IS NOT IN FACT DIRECTED AGAINST THE ABSENCE OF A PROVISION IN DECISION NO 234/84 PERMITTING REFERENCE PRODUCTION TO BE ADJUSTED IN RESPECT OF THE BRINGING INTO SERVICE OF NEW PLANT , BUT AGAINST THE CRITERION WHICH IS THE BASIS OF THE METHOD FOR SHARING OUT QUOTAS UNDER THE SYSTEM IN GENERAL . THAT METHOD IS BASED ON THE ACTUAL PRODUCTION OF EACH UNDERTAKING DURING A REFERENCE PERIOD . IN ITS JUDGMENT OF 3 MARCH 1982 ( CASE 14/81 , ALPHA STEEL V COMMISSION , ( 1982 ) ECR 749 ), THE COURT HELD THAT THERE WERE NO REASONABLE GROUNDS FOR DENYING THAT THE COMMISSION ' S CHOICE OF THE CRITERION BASED ON UNDERTAKINGS ' ACTUAL PRODUCTION MAY CONSTITUTE AN EQUITABLE BASIS WITHIN THE MEANING OF ARTICLE 58 , INASMUCH AS IT CONSTITUTES AN OBJECTIVE BASIS OF ASSESSMENT AND ENABLES TOTAL PRODUCTION TO BE REDUCED WITHOUT ALTERING THE POSITION OF UNDERTAKINGS ON THE MARKET AS BETWEEN EACH OTHER .
32 IT WOULD BE TOTALLY CONTRARY TO THAT CRITERION , WHICH SEEKS TO SHARE THE QUOTAS EQUITABLY BETWEEN ALL THE UNDERTAKINGS IN THE COMMUNITY , HAVING REGARD TO THE SITUATION IN THE COMMON MARKET AS A WHOLE , TO GRANT ADJUSTMENTS OF THOSE QUOTAS ON THE BASIS OF THE SITUATION OF THE UNDERTAKING IN QUESTION ON THE NATIONAL MARKET ALONE , AND TO SEEK TO RESERVE FOR THAT UNDERTAKING THE PRODUCTION OF THE STEEL CONSUMED ON THAT MARKET .
33 THIS SUBMISSION MUST THEREFORE BE DISMISSED WITHOUT ITS BEING NECESSARY TO CONSIDER THE STATISTICS RELATING TO THE APPLICANT ' S MARKET SHARE WHICH WERE ADVANCED BY BOTH PARTIES , EITHER IN SUPPORT OF OR IN OPPOSITION TO THE SUBMISSION .
BREACH OF THE LAW
34 THE APPLICANT CLAIMS THAT , BY REFUSING TO GRANT ADDITIONAL QUOTAS FOR THE NEW PLANT AT BAGNOLI , DECISION NO 234/84 INTRODUCED A PROHIBITION UPON PRODUCTION AND , CONSEQUENTLY , UPON THE CONSTRUCTION OF NEW PLANT ; SUCH A PROHIBITION