CELEX: C1998/184/02
Language: en
Date: 1998-06-13 00:00:00
Title: JUDGMENT OF THE COURT (Sixth Chamber) of 30 April 1998 in Case C-230/96 (reference for a preliminary ruling from the Cour d'Appel, Douai): Cabour SA and Nord Distribution Automobile SA, supported by Automobiles Peugeot SA and Automobiles Citroën SA v. Arnor 'SOCO' SARL (Competition - Vehicle distribution - Validity of exclusive dealership agreement - Article 85(1) and (3) of the EC Treaty - Regulation (EEC) No 123/85 - Regulation (EC) No 1475/95)

C 184/2             EN                   Official Journal of the European Communities                                      13.6.98
   whether the said substance is a starting material                     relating to similar domestic claims and must not be so
   within the meaning of the first paragraph of that                     framed as to make it in practice impossible or
   provision. If it is not, such particulars may                         excessively difficult to obtain reparation.
   nevertheless be required in so far as the features of the
   process by which the starting material is manufactured           (1) OJ C 174, 8.7.1995.
   from the substance are such that no other means of
   assessing the purity of the starting material is
   available. Where the competent authority requires an
   applicant for marketing authorisation to provide
   information under Article 9, point 3, of Directive 81/
   851/EEC, the time-limits laid down in Article 8 of
   that directive are to be suspended until that                                   JUDGMENT OF THE COURT
   information is provided.
                                                                                            (Sixth Chamber)
                                                                                           of 30 April 1998
2. The fact that the process by which a medicinal
   product is manufactured is continuous or other than              in Case C-230/96 (reference for a preliminary ruling from
   continuous does not affect the answers to the first              the Cour d'Appel, Douai): Cabour SA and Nord
   question.                                                        Distribution Automobile SA, supported by Automobiles
                                                                    Peugeot SA and Automobiles CitroeÈn SA v. Arnor SOCO'
                                                                                                 SARL (1)
3. The competent authority is not authorised to exempt
   an applicant for marketing authorisation from                    (Competition Ð Vehicle distribution Ð Validity of
   providing a particular or document required under                exclusive dealership agreement Ð Article 85(1) and (3) of
   Article 5 of Directive 81/851/EEC even if it appears             the EC Treaty Ð Regulation (EEC) No 123/85 Ð
   practically impossible, in a given case, to obtain that                          Regulation (EC) No 1475/95)
   information.                                                                              (98/C 184/02)
4. Consideration of the fourth question has disclosed no                            (Language of the case: French)
   factor of such a kind as to affect the validity, in the
   light of the principle of proportionality, of points 3, 4
   or 9 of the second paragraph of Article 5 of Directive             (Provisional translation; the definitive translation will be
   81/851/EEC or Part 1(A), (B) or (C) of the Annex to                        published in the European Court Reports)
   Directive 81/852/EEC.
                                                                    In Case C-230/96: reference to the Court under Article 177
5. Consideration of the fifth question has disclosed no             of the EC Treaty from the Cour d'Appel (Court of
   factor of such a kind as to affect the validity, in the          Appeal), Douai, France, for a preliminary ruling in the
   light of Articles 30 to 36 of the EC Treaty, of                  proceedings pending before that court between Cabour SA
   Directives 81/851/EEC and 81/852/EEC.                            and Nord Distribution Automobile SA, supported by
                                                                    Automobiles Peugeot SA and Automobiles CitroeÈn SA and
                                                                    Arnor SOCO' SARL Ð on the interpretation of
6. Article 40 of Directive 81/851/EEC must be                       Article 85(1) of the EC Treaty and certain provisions of
   interpreted as meaning that a request for further                Commission Regulation (EEC) No 123/85 of 12 December
   information based on Article 9, point 3, of that                 1984 on the application of Article 85(3) of the EEC
   directive need not state the reasons on which it is              Treaty to certain categories of motor vehicle distribution
   based.                                                           and servicing agreements (OJ L 15 of 18.1.1985, p. 16),
                                                                    and of Commission Regulation (EC) No 1475/95 of
                                                                    28 June 1995 (OJ L 145 of 29.6.1995, p. 25) Ð the Court
7. A Member State is required to make good loss and                 (Sixth Chamber), composed of: H. Ragnemalm, President
   damage caused to an applicant for marketing                      of the Chamber, R. Schintgen (Rapporteur), G. F.
   authorisation as a result of requests for information            Mancini, P. J. G. Kapteyn and G. Hirsch, Judges; G.
   and requirements which infringe Directives 81/851/               Tesauro, Advocate-General; D. Louterman-Hubeau,
   EEC and 81/852/EEC where the rule of Community                   Principal Administrator, for the Registrar, has given a
   law infringed is intended to confer rights on                    judgment on 30 April 1998, in which it has ruled:
   individuals, the breach is sufficiently serious and there
   is a direct causal link between that breach and the
   damage sustained by the individuals concerned.                   1. On a proper construction of Article 5(2)(1)(a) and (b)
   Subject to that reservation, it is on the basis of rules of           of Commission Regulation (EEC) No 123/85 of
   national law on liability that the State must make                    12 December 1984 on the application of Article 85(3)
   reparation for the consequences of the loss and                       of the EEC Treaty to certain categories of motor
   damage caused by a breach of Community law for                        vehicle distribution and servicing agreements, the
   which it can be held responsible, with the proviso that               exemption granted by the regulation applies to a
   the conditions laid down by the applicable national                   clause in an exclusive dealership agreement which does
   legislation must not be less favourable than those                    no more than provide that the parties may, in order to
 ---pagebreak--- 13.6.98               EN                 Official Journal of the European Communities                                     C 184/3
    release themselves from the obligation not to compete,                         JUDGMENT OF THE COURT
    put forward objectively valid reasons, without                                         (Sixth Chamber)
    indicating specifically what those reasons may be.
                                                                                           of 30 April 1998
                                                                           in Case C-24/97: Commission of the European
    On a proper construction of Article 3(3) and 5(2) of                  Communities v. Federal Republic of Germany (1)
    Regulation (EEC) No 123/85, the exemption granted
    by the regulation does not apply to a clause in a               (Failure of a Member State to fulfil its obligations Ð
    contract which, unless there are objectively valid              Right of residence Ð Obligation to hold identity papers
    reasons, prevents the dealer from selling new vehicles                                   Ð Penalties)
    of any other make, even at commercial premises
                                                                                            (98/C 184/03)
    separate from those at which the contract goods are
    offered for sale.
                                                                                   (Language of the case: German)
    On a proper construction of Articles 4(1)(3) and
    5(2)(2) and (3) of Regulation (EEC) No 123/85, the               (Provisional translation; the definitive translation will be
    exemption granted by the regulation applies to a                          published in the European Court Reports)
    clause in a contract which imposes on a dealer a fixed
    sales target and provides for penalties, extending to
    termination of the contract if the target is not met,           In Case C-24/97: Commission of the European
    provided, however, that the sales target represents             Communities (Agents: Peter Hillenkamp and Pieter Jan
    simply an obligation to use best endeavours.                    Kuijper) v. Federal Republic of Germany (Agent: Ernst
                                                                    Röder) Ð application for a declaration that by treating
                                                                    nationals of other Member States residing in Germany
2. On a proper construction of Articles 3(3) and 5(2) of            disproportionately differently, as regards the degree of
    Commission Regulation (EC) No 1475/95 of 28 June                fault and scale of fines, from German nationals when they
    1995 on the application of Article 85(3) of the Treaty          commit a comparable infringement of the obligation to
    to certain categories of motor vehicle distribution and         hold a valid identity document, the Federal Republic of
    servicing agreements, the exemption granted by the              Germany has failed to fulfil its obligations under
    regulation does not apply to a clause in a contract             Articles 48, 52 and 59 of the EC Treaty and under
    which, unless there are objectively valid reasons,              Article 4(1) of Council Directive 68/360/EEC of
    prevents the dealer from selling new vehicles of any            15 October 1968 on the abolition of restrictions on
    other make, even at commercial premises separate                movement and residence within the Community for
    from those at which the contract goods are offered for          workers of Member States and their families (OJ, English
    sale.                                                           Special Edition 1968 (II), p. 485) and Article 4(1) of
                                                                    Council Directive 73/148/EEC of 21 May 1973 on the
                                                                    abolition of restrictions on movement and residence
                                                                    within the Community for nationals of Member States
    On a proper construction of Articles 4(1)(3) and 5(2)           with regard to establishment and the provision of services
    and (3) of Regulation (EC) No 1475/95, the                      (OJ L 172 of 28.6.1973, p. 14) Ð the Court (Sixth
    exemption granted by the regulation applies to a                Chamber), composed of H. Ragnemalm (Rapporteur),
    clause in a contract which imposes on a dealer a fixed          President of the Chamber, G. F. Mancini, J. L. Murray, G.
    sales target and provides for penalties, which may              Hirsch and K. M. Ioannou, Judges; F. G. Jacobs,
    extend to termination of the contract if the target is          Advocate-General; R. Grass, Registrar, has given a
    not met, provided, however, that the sales target               judgment on 30 April 1998 in which it:
    represents simply an obligation to use best endeavours
    and is determined by common agreement between the
    parties or, where they disagree, by an expert third             1. Declares that, by treating nationals of other Member
    party.                                                              States residing in Germany disproportionately
                                                                        differently, as regards the degree of fault and scale of
                                                                        fines, from German nationals when they commit a
3. The prohibition set out in Article 85(1) of the Treaty               comparable infringement of the obligation to hold a
    applies to clauses in a motor vehicle dealership                    valid identity document, the Federal Republic of
    contract which are not covered by the block                         Germany has failed to fulfil its obligations under
    exemption if, having regard to the economic and legal               Articles 48, 52 and 59 of the EC Treaty, Article 4 of
    context, their object or effect is perceptibly to restrict          Council Directive 68/360/EEC of 15 October 1968 on
    competition within the common market and they are                   the abolition of restrictions on movement and
    capable of affecting trade between Member States.                   residence within the Community for workers of
                                                                        Member States and their families and Article 4 of
                                                                        Council Directive 73/148/EEC of 21 May 1973 on the
(1) OJ C 269, 14.9.1996.                                                abolition of restrictions on movement and residence
                                                                        within the Community for nationals of Member States
                                                                        with regard to establishment and the provision of
                                                                        services;