MACHINES .
THIS AGREEMENT IS CAPABLE OF AFFECTING TRADE BETWEEN MEMBER STATES . DURO-DYNE PRODUCTS HAVE AN APPRECIABLE SHARE OF THE EEC MARKET . BUT FOR THE AGREEMENT OTHER DEALERS IN THE EEC WOULD HAVE BEEN ABLE TO BUY , AND WOULD HAVE BOUGHT , DIRECTLY FROM DURO-DYNE FOR RESALE IN THEIR OWN OR IN ANOTHER MEMBER STATE . AS A RESULT OF THE AGREEMENT DURO-DYNE PRODUCTS CAN ONLY BE IMPORTED INTO THE EEC FOR RESALE IN THE VARIOUS MEMBER STATES EITHER DIRECTLY THROUGH EUROPAIR AND ITS DISTRIBUTIORS OR INDIRECTLY THROUGH A DISTRIBUTOR OUTSIDE THE EEC . THE FLOW OF INTER-STATE TRADE IN THE PRODUCTS IN QUESTION WILL THEREFORE DEVELOP ON LINES OTHER THAN THOSE WHICH WOULD HAVE PREVAILED WITHOUT THE RESTRICTIONS CAUSED BY THE AGREEMENT .
THIS AGREEMENT ACCORDINGLY COMES WITHIN THE SCOPE OF ARTICLE 85 ( 1 ) .
III
UNDER ARTICLE 85 ( 3 ) , THE PROVISIONS OF ARTICLE 85 ( 1 ) MAY BE DECLARED INAPPLICABLE TO THE AGREEMENT IF IT 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 . COMMISSION REGULATION N 67/67/EEC DOES NOT APPLY TO THE AGREEMENT IN QUESTION SINCE THE LATTER RELATES NOT TO RESALE WITHIN A SPECIFIC PART OF THE TERRITORY OF THE COMMON MARKET BUT TO RESALE WITHIN THE WHOLE OF THAT TERRITORY .
NEVERTHELESS , IN THE PRESENT CASE THE EXISTENCE OF A SINGLE EXCLUSIVE DISTRIBUTOR RESPONSIBLE FOR IMPORTING AN EXTENSIVE RANGE OF AMERICAN PRODUCTS INTO THE WHOLE TERRITORY OF THE EEC DOES CONTRIBUTE TO IMPROVING THE DISTRIBUTION OF THESE PRODUCTS WITHIN THE COMMON MARKET .
FOR IN THIS WAY DURO-DYNE CAN CONSOLIDATE THE DISTRIBUTION OF ITS PRODUCTION . IT IS NOT OBLIGED TO MAINTAIN NUMEROUS BUSINESS CONTACTS WITH DISTRIBUTORS IN THE VARIOUS MEMBER STATES AND THE FACT THAT IT ENTRUSTS THE ORGANIZATION OF THE SALE OF ITS PRODUCTS WITHIN THE EEC TO ONE GENERAL DISTRIBUTOR MAKES IT EASIER TO OVERCOME DIFFICULTIES RESULTING FROM LINGUISTIC , LEGAL OR TECHNICAL DIFFERENCES . THIS IS PARTICULARLY ADVANTAGEOUS SINCE THE PRODUCTS CONCERNED , WHICH ARE MOSTLY SMALL ACCESSORIES FOR HEATING AND AIR-CONDITIONING INSTALLATIONS , CONSIST OF A LARGE NUMBER OF VARIED ARTICLES WHICH HAVE TO CONFORM TO THE VARIOUS SYSTEMS EXISTING IN THE COMMON MARKET AND COMPLY WITH THE NECESSARY TECHNICAL SPECIFICATIONS .
THE AGREEMENT NOTIFIED THEREFORE MAKES THE PROMOTION OF THE SALE OF THE PRODUCTS CONCERNED EASIER AND PERMITS MORE INTENSIVE MARKETING TO BE UNDERTAKEN AND ENSURES CONTINUITY OF SUPPLIES WHILE AT THE SAME TIME RATIONALIZING DISTRIBUTION .
FURTHERMORE , IT IS BECAUSE EUROPAIR HAS UNDERTAKEN ON DURO-DYNE'S BEHALF , IN RETURN FOR EXCLUSIVE RIGHTS , NOT ONLY TO PROMOTE SALES