LIABLE TO GIVE THE UNDERTAKINGS CONCERNED THE POWER TO DETERMINE THE PRICES , OR TO CONTROL OR RESTRICT THE PRODUCTION OR MARKETING , OF A SUBSTANTIAL PART OF THE PRODUCTS IN QUESTION WITHIN THE COMMON MARKET , OR TO SHIELD THEM AGAINST EFFECTIVE COMPETITION FROM OTHER UNDERTAKINGS WITHIN THE COMMON MARKET .
IV
16 . ON THE QUESTION WHETHER THE AGREEMENTS MAKE FOR A SUBSTANTIAL IMPROVEMENT IN THE PRODUCTION OR DISTRIBUTION OF THE RELEVANT PRODUCTS , THE FOLLOWING POINTS CAN BE MADE .
ARBED , ARBED-FELTEN UND GUILLEAUME , ESCHWEILER BERGWERKSVEREIN AND ROECHLING-BURBACH CONSTITUTE A CONCENTRATION FOR THE PURPOSE OF ARTICLE 66 ( 1 ) AND FORM A GROUP ( KONZERN ) WITH OTHER UNDERTAKINGS WHICH PROCESS FINISHED AND FINAL ROLLED PRODUCTS .
SPECIALIZATION WITHIN THE VARIOUS UNDERTAKINGS BELONGING TO THE GROUP HAS LED TO A HIGH DEGREE OF BOTH HORIZONTAL AND VERTICAL INTEGRATION .
THE SAME CAN BE SAID OF NEUNKIRCHEN , BOCHUM AND RASSELSTEIN , WHICH FORM THE OTTO WOLFF GROUP .
THE ARBED , ROECHLING-BURBACH AND NEUNKIRCHEN PROGRAMMES OVERLAP AS REGARDS HEAVY SECTIONS AND PERMANENT WAY MATERIAL . ARBED , ARBED-FELTEN UND GUILLEAUME , EBV AND NEUNKIRCHEN ALSO PRODUCE LIGHT SECTIONS AND WIRE RODS . DILLINGEN AND OW SPECIALIZE IN FLAT PRODUCTS , BUT THERE IS LITTLE DUPLICATION IN THEIR PROGRAMMES . SINCE THE PRODUCERS OF HEAVY AND LIGHT SECTIONS AND WIRE RODS OPERATE SIMILAR ROLLING MILLS , THEY HAVE ADDITIONAL OPPORTUNITIES OF HARMONIZING THEIR PRODUCTION PROGRAMMES AND CONCENTRATING THE MANUFACTURE OF CERTAIN PRODUCTS ON A SMALL NUMBER OF PRODUCERS .
THROUGH THE PROVISION FOR RECIPROCAL UNDERTAKINGS NOT TO ROLL ENTIRE PRODUCT CATEGORIES , SUCH AS BROAD-FLANGED BEAMS , MERCHANT BARS , SECTIONS , AND HEAVY AND MEDIUM PLATES , AND THROUGH THE PROVISIONS ALLOCATING WORK IN RELATION TO CERTAIN SECTION-TYPES AND CERTAIN PRODUCT-SIZES , THE PRODUCTION SPECIALIZATION AGREEMENTS ENABLE LARGER ROLLING LOTS TO BE BUILT UP SO THAT ROLLING MILLS CAN WORK CLOSER TO CAPACITY . THIS APPLIES NOTABLY TO PERMANENT WAY MATERIAL , SECTIONS AND MERCHANT BARS .
BY COORDINATING THEIR INTERESTS IN THE SUPPLY OF IRON ORE THROUGH GROUPED ORDERS , THE COMPANIES CONCERNED CAN REDUCE THEIR EXPENDITURE ON THIS IMPORTANT RAW MATERIAL . THIS APPLIES BOTH TO THE BASIC PURCHASE PRICE AND TO CARRIAGE AND STORAGE COSTS .
BY UNDERTAKING NOT TO PRODUCE FOR THE TIME BEING SOME OF THE PRELIMINARY PRODUCTS THEY REQUIRE BUT TO HAVE THEM SUPPLIED BY NEIGHBOURING COMPANIES , THEY OBVIATE THE NEED FOR HEAVY INVESTMENT WHICH , IN VIEW OF THE SCALE OF THEIR OWN REQUIREMENTS , WOULD NOT BE USED TO OPTIMAL CAPACITY ; SECONDLY , THEIR SUPPLIERS CAN INCREASE USE OF THEIR OWN FACILITIES AND THEREBY REDUCE COSTS .
THE ALLOCATION OF ORDERS AND COORDINATION OF SALES BETWEEN THE COMPANIES CONCERNED IN A PERIOD OF POOR TRADE , WHEN THE COMMISSION INDICATES TO THEM AN OVERALL DELIVERY OBJECTIVE , SHOULD ALLOW THEM TO SHARE OUT AMONG THEMSELVES THIS OVERALL FIGURE IN A WAY WHICH WILL SECURE THE SPECIALIZATION OBJECTIVES OF THE PRESENT AGREEMENTS AND , IN