MEANING OF ARTICLE 85 INASMUCH AS ITS EFFECT IS TO BRING TOGETHER THE MEMBERS AND AFFILIATES OF BOTH ASSOCIATIONS INCLUDING PUBLISHERS , BOOK CLUBS , IMPORTERS , EXCLUSIVE REPRESENTATIVES , WHOLESALERS AND BOOKSELLERS . IT INVOLVED A RESTRICTION ON COMPETITION WITHIN THE COMMON MARKET BY REASON OF BOTH THE COLLECTIVE EXCLUSIVE DEALING SYSTEM AND THE COLLECTIVE RESALE PRICE MAINTENANCE SYSTEM FOR WHICH IT MAKES PROVISION .
THE EXCLUSIVE DEALING SYSTEM INVOLVES A PROHIBITION OF PURCHASING , STOCKING OR ENCOURAGING THE SALE OF BOOKS PUBLISHED IN THE OTHER STATE BY A PUBLISHER WHO IS NOT RECOGNIZED . THOSE PROVISIONS HAVE THE EFFECT OF RESTRICTING THE GREATER PART OF TRADE IN BOOKS BETWEEN BELGIUM AND THE NETHERLANDS TO RECOGNIZED UNDERTAKINGS AND THEREFORE PREVENT RECOGNIZED PUBLISHERS AND TRADERS FROM DEALING WITH NON-RECOGNIZED PUBLISHERS AND TRADERS FROM THE OTHER STATE .
UNDER THE RESALE PRICE MAINTENANCE SYSTEM PUBLISHERS IN BOTH STATES ARE REQUIRED TO FIX A SINGLE RETAIL PRICE FOR EACH OF THEIR PUBLICATIONS AND SELLERS ARE REQUIRED NOT TO SELL A BOOK IN THE OTHER STATE AT A RETAIL PRICE OTHER THAN THAT FIXED BY THE PUBLISHER . ACCORDING TO THE COMMISSION THAT SYSTEM EXCLUDES ALL PRICE COMPETITION FOR ONE AND THE SAME TITLE BETWEEN BOOKSELLERS IN THE TWO STATES . TRADERS ARE FORBIDDEN ANY PERSONAL EFFORT WHICH MIGHT PERMIT THEM TO INCREASE THEIR MARKET SHARE BY RESELLING BOOKS BELOW THE PRICE FIXED BY THE PUBLISHER OR TO PROVIDE CONSUMERS WITH A FAIR SHARE OF THE BENEFIT RESULTING FROM RATIONALIZATION MEASURES .
THE MAJORITY OF UNDERTAKINGS IN THE BOOK TRADE IN FLANDERS AND THE NETHERLANDS ARE AFFILIATED TO THE TWO ASSOCIATIONS OR RECOGNIZED BY THEM SO THAT THE AGREEMENT INVOLVES A PERCEPTIBLE RESTRICTION ON COMPETITION INASMUCH AS ITS AIM IS TO SUBJECT TRADE IN BOOKS TO RULES WHICH PREVENT PUBLISHERS OF DUTCH-LANGUAGE BOOKS AND BOOKSELLERS IN EITHER STATE FROM FREELY SELECTING THEIR CHANNELS OF SUPPLY AND DISTRIBUTION IN THE OTHER STATE AND FROM DETERMINING THEIR CONDITIONS OF PURCHASE AND SALE . THE AGREEMENT , ACCORDING TO THE COMMISSION , IS THEREFORE SUCH AS TO HINDER FREEDOM OF TRADE BETWEEN MEMBER STATES . ITS HARMFUL EFFECTS ARE ALL THE MORE SIGNIFICANT INASMUCH AS THE TRADE IN BOOKS BETWEEN THE NETHERLANDS AND BELGIUM IS VERY CONSIDERABLE .
10 THE APPLICANTS PUT FORWARD TWO GROUPS OF OBJECTIONS TO THAT PART OF THE DECISION , SOME FORMAL AND PROCEDURAL AND OTHERS INVOLVING THE COMMISSION ' S APPRAISALS OF THE CONTENT OF THE AGREEMENT .
FORMAL AND PROCEDURAL OBJECTIONS
11 THE FLEMISH ASSOCIATION IN PARTICULAR HAS RAISED NUMEROUS OBJECTIONS AS TO FORM AND PROCEDURE ; TWO OF ITS OBJECTIONS HAVE BEEN TAKEN UP AND FURTHER DEVELOPED BY THE DUTCH ASSOCIATION , AS WILL APPEAR BELOW .
12 FIRST THE FLEMISH ASSOCIATION COMPLAINS THAT THE OFFICIAL WHO SIGNED THE STATEMENT OF OBJECTIONS WAS NOT EMPOWERED TO DO SO BY AN AUTHORIZATION DULY GRANTED BY THE COMMISSION .
13 IN REPLY TO THAT COMPLAINT , WHICH DOES NOT APPEAR IN GREATER DETAIL IN THE APPLICATION , THE COMMISSION HAS GIVEN