PROHIBITION , WHETHER THE COMMISSION ' S EXEMPTION OF THEM PURSUANT TO ARTICLE 85 ( 3 ) CONSTITUTES A PROPER APPLICATION OF THAT PROVISION .
( 1 ) THE OBLIGATION IMPOSED UPON SABA DISTRIBUTORS TO SUPPLY FOR RESALE ONLY TO APPOINTED WHOLESALERS OR RETAILERS
26 THE APPLICANT CLAIMS THAT THE OBLIGATION IMPOSED UPON WHOLESALERS TO CHECK PERSONALLY BEFORE DELIVERING SUPPLIES TO A RESELLER WHETHER THE LATTER HAS IN FACT BEEN APPOINTED A SABA DEALER , IN PARTICULAR BY RECORDING IN A REGISTER AND STRICTLY CHECKING THE NUMBERS OF ALL SABA ARTICLES SUPPLIED , TOGETHER WITH THE DATE OF SALE AND THE NAME OF THE PURCHASER , EXCEEDS WHAT IS NECESSARY TO MAINTAIN A SELECTIVE NETWORK AND CONSTITUTES AN OBLIGATION WHICH IS INCOMPATIBLE WITH THE STRUCTURE OF THE SELF-SERVICE WHOLESALE TRADE .
27 TO BE EFFECTIVE , ANY MARKETING SYSTEM BASED ON THE SELECTION OF OUTLETS NECESSARILY ENTAILS THE OBLIGATION UPON WHOLESALERS FORMING PART OF THE NETWORK TO SUPPLY ONLY APPOINTED RESELLERS AND , ACCORDINGLY , THE RIGHT OF THE RELEVANT PRODUCER TO CHECK THAT THAT OBLIGATION IS FULFILLED .
PROVIDED THAT THE OBLIGATIONS UNDERTAKEN IN CONNEXION WITH SUCH SAFEGUARDS DO NOT EXCEED THE OBJECTIVE IN VIEW THEY DO NOT IN THEMSELVES CONSTITUTE A RESTRICTION ON COMPETITION BUT ARE THE COROLLARY OF THE PRINCIPAL OBLIGATION AND CONTRIBUTE TO ITS FULFILMENT .
THE COMMISSION CONSIDERED THAT THE OBLIGATIONS IMPOSED IN THIS CONNEXION UNDER THE AGREEMENT DO NOT EXCEED WHAT IS NECESSARY FOR AN ADEQUATE CONTROL AND CONSTITUTE A NORMAL DUTY FOR A WHOLESALER SINCE , IN THE CASE OF CONSUMER DURABLES , THE IDENTIFICATION OF THE RETAILERS SUPPLIED AND OF THE GOODS DELIVERED CONSTITUTES A NORMAL REQUIREMENT IN RUNNING A WHOLESALE BUSINESS .
ACCORDINGLY , SINCE SUCH OBLIGATIONS CONCERNING VERIFICATION DO NOT EXCEED WHAT IS NECESSARY FOR THE ATTAINMENT OF THEIR OBJECTIVE AND IN SO FAR AS THEY ARE DESIGNED TO ENSURE RESPECT FOR THE CONDITIONS OF APPOINTMENT REGARDING THE CRITERIA AS TO TECHNICAL QUALIFICATIONS , THEY FALL OUTSIDE THE SCOPE OF ARTICLE 85 ( 1 ) WHEREAS , IN SO FAR AS THEY GUARANTEE THE FULFILMENT OF MORE STRINGENT OBLIGATIONS , THEY WILL FALL WITHIN THE TERMS OF THE PROHIBITION CONTAINED IN ARTICLE 85 ( 1 ), UNLESS THEY TOGETHER WITH THE PRINCIPAL OBLIGATION TO WHICH THEY ARE RELATED ARE EXEMPTED WHERE APPROPRIATE PURSUANT TO ARTICLE 85 ( 3 ).
WHETHER THE ABOVEMENTIONED OBLIGATIONS ARE IN ACCORDANCE WITH THE TREATY THEREFORE DEPENDS UPON THE APPRAISAL WHICH MUST BE MADE OF THE OTHER ELEMENTS WHICH THE APPLICANT HAS CRITICIZED .
( 2 ) THE PROHIBITION ON DIRECT SUPPLIES TO INSTITUTIONAL CONSUMERS
28 WHILST THE COMMISSION REQUIRED SABA TO REFRAIN FROM IMPOSING UPON WHOLESALERS THE PROHIBITION ON SUPPLIES TO TRADE CONSUMERS IT PERMITTED THAT UNDERTAKING TO MAINTAIN THE PROHIBITION ON SUPPLIES TO PRIVATE CUSTOMERS , INCLUDING LARGE-SCALE ' INSTITUTIONAL ' CONSUMERS SUCH AS SCHOOLS , HOSPITALS , MILITARY ESTABLISHMENTS , ADMINISTRATIONS AND OTHER CUSTOMERS OF THE SAME NATURE .
THE COMMISSION CONSIDERS THAT , APART FROM THE FACT THAT THIS LIMITATION ON THE