OF THE TREATY THE PROVISIONS OF ARTICLE 85 ( 1 ) MAY BE DECLARED INAPPLICABLE IN THE CASE OF ANY AGREEMENT OR CONCERTED PRACTICE BETWEEN UNDERTAKINGS WHICH CONTRIBUTES TO IMPROVING THE PRODUCTION OR DISTRIBUTION OF GOODS OR TO PROMOTING TECHNICAL OR ECONOMIC PROGRESS , WHILE ALLOWING CONSUMERS A FAIR SHARE OF THE RESULTING BENEFIT , AND WHICH DOES NOT :
( A ) IMPOSE ON THE UNDERTAKINGS CONCERNED RESTRICTIONS WHICH ARE NOT INDISPENSABLE TO THE ATTAINMENT OF THESE OBJECTIVES ;
( B ) AFFORD SUCH UNDERTAKINGS THE POSSIBILITY OF ELIMINATING COMPETITION IN RESPECT OF A SUBSTANTIAL PART OF THE PRODUCTS IN QUESTION .
1 . THE COORDINATION SET IN TRAIN BETWEEN RANK AND SOPELEM , AND ESPECIALLY THE SPECIALIZATION OF THEIR RESPECTIVE MANUFACTURING OPERATIONS , HAS ENABLED BOTH OF THEM TO SECURE ECONOMIES OF SCALE BY IMPROVING PRODUCTIVITY AND PROFITABILITY IN THESE FIELDS ; FURTHERMORE , IN THE ABSENCE OF THE AGREEMENT , THE TWO FIRMS WERE UNLIKELY TO DEVELOP A PRODUCT RANGE AS WIDE AS THEY ARE NOW BOTH ABLE TO OFFER ; THE AGREEMENT THEREFORE HELPS TO IMPROVE PRODUCTION . MOREOVER , THE OBLIGATION TO BUY FROM AND SELL TO EACH OTHER HAS ENABLED EACH PARTY TO INCREASE ITS SALES IN THE OTHER'S TERRITORY BY ALLOWING ACCESS TO EACH OTHER'S DISTRIBUTION NETWORK _ MAINLY BECAUSE OF THE EXPERIENCE AND REPUTATION OF EACH PARTY'S NETWORK IN ITS OWN TERRITORY ; IN PARTICULAR IN THIS CASE SOPELEM WAS IMMEDIATELY ABLE TO USE RANK'S WORLDWIDE SALES NETWORK . THE AGREEMENT THUS HELPS TO IMPROVE DISTRIBUTION . COORDINATION AND ALLOCATION OF RESEARCH AND DEVELOPMENT WORK BETWEEN THE TWO UNDERTAKINGS HAVE ALSO ENABLED THEM TO RATIONALIZE THEIR ACTIVITIES IN THESE FIELDS , PARTICULARLY BY CONCENTRATING ON PROJECTS SUITED TO THEIR EQUIPMENT AND EXPERIENCE AND BY MAKING THE OTHER PARTY RESPONSIBLE FOR CERTAIN TYPES OF WORK . THE AGREEMENT THUS HELPS TO PROMOTE TECHNICAL PROGRESS .
2 . SINCE 1968 THE AGREEMENT HAS BEEN INSTRUMENTAL IN INCREASING RANK'S SALES IN FRANCE AND SOPELEM'S EXPORT SALES AND IN IMPROVING THE QUALITY OF THE PRODUCTS , SERVICE AND SERVICE CONDITIONS TO CONSUMERS . EACH PARTY OFFERS CUSTOMERS A MORE EXTENSIVE AND TECHNICALLY MORE ADVANCED RANGE OF PRODUCTS _ A VERY IMPORTANT POINT WHERE PRECISION INSTRUMENTS ARE CONCERNED . THE PRESENCE OF OTHER BIG MANUFACTURERS AND OF EFFECTIVE COMPETITION ON THIS MARKET SUGGESTS THAT THE IMPROVEMENTS FLOWING FROM THE AGREEMENT AND THE BENEFITS ACCRUING TO CONSUMERS WILL BE MAINTAINED .
3 . IN THIS CASE , THE AGREEMENT CONTAINS NO RESTRICTIONS WHICH ARE NOT INDISPENSABLE TO THE ATTAINMENT OF THE ABOVE OBJECTIVES . THE EXCLUSIVE NATURE OF THE PARTIES' RECIPROCAL BUYING AND SELLING COMMITMENTS CANNOT BE SEPARATED FROM OTHER ASPECTS OF THEIR COOPERATION , AND IT PROVIDES THE BEST METHOD OF DISTRIBUTION , PARTICULARLY AS REGARDS THE STORAGE , INSTALLATION , DISPLAY , AFTER-SALES SERVICE AND GUARANTEEING OF THIS HIGHLY SPECIALIZED EQUIPMENT . THE FACT THAT EACH PARTY MUST REFRAIN FROM MANUFACTURING CERTAIN PRODUCTS ENTRUSTED TO THE OTHER FLOWS FROM THAT VERY SPECIALIZATION WHICH IS THE REASON