CELEX: 51988PC0447
Language: en
Date: 1988-10-14
Title: Proposal for a COUNCIL REGULATION (EEC) on a code of conduct for computerised reservation systems (presented by the Commission)

ARCHIVES HISTORIQUES
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COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 447
Vol. 1988/0164
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                   COM(88) ) 447 final
                                   Brussels , 14 October 1988
                         Proposal for a
                    COUNCIL REGULATION ( EEC )
            on a code of conduct for computerised
                       reservation systems
                ( presented by the Commission )
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           PROPOSAL FOR A COUNCIL REGULATION ON COMPUTERISED
                          RESERVATION SYSTEMS
                         EXPLANATORY MEMORANDUM
Introduction
1.        It has Deen estimated that about 80 % ( 1 ) of all European
airline cookings are made through travel agents and some
80 % ( 2 ) of all Dookings made by travel agents are made through
airline-owned computerised reservation systems ( CRSs ) . US
experience suggests that between 70 % and 90 % of ail airline
Dookings on CRSs are made from the first display screen .
2.        These figures give some measure of the importance to
airlines of being able to participate in and , if possible ,
control CRSs . They also give an indication of the temptation for
airlines which control CRSs to build into the systems a bias in
their own favour , either in terms of screen presentation ,
comprehensiveness or reliability of information , or to deny
access to the system to other airlines or to charge prohibitive
or unreasonable fees for participation in the system . It will be
clear that the ultimate user of a CRS - the consumer - can be
seriously disadvantaged by a biased CRS while a travel agent can
be the willing or unwilling instrument of promoting the products
of a biased CRS .
problem
3.        Abuses in the way CRSs are operated have occurred . These
were first felt in the USA because of the earlier development
there of these systems . Complaints about screen bias and market
domination finally resulted in the implementation in 1984 by the
US authorities of legislation governing tne operation of CRSs .
4.        Although these regulations were generally considered
effective , the ingenuity of system vendors found ways around
these regulations so that complaints , including complaints from
European carriers , have again been voiced .
5.        In Europe CRSs are , by and large , owned by the national
flag carriers . Bias in these systems has been tempered by
reciprocal arrangements between these carriers . However a number
of air carriers do not benefit from such reciprocity and are
therefore disadvantaged .
There have been complaints of small airlines being denied access
to systems and US airlines being refused the right to issue
tickets in respect of certain European airlines .
6.        in 1986 the Association of European Airlines ( AEA ) carried
out a study of the feasibility of establishing a European CRS
owned by AEA carriers and aDie to compete with US systems on
equal terms . The results of tne study were positive Dut the
practical result was the grouping of certain AEA airlines m 1987
 into two separate companies – Amadeus and Galileo – with the aim
 of developing and operating two large European CRSs .
 ( 1 ) AEA figures
 ( 2 ) Commission survey carried out with the help of ECTAA
 ---pagebreak---                                   2
Controls in Europe
7.     The Council of Ministers , as part of the December 1987
Aviation package , gave the Commission delegated powers to make
regulations , subject to certain conditions , giving block
exemptions from the competition rules inter alia to airlines
which jointly develop , purchase or operate airline computerised
reservation systems . This action was designed to meet the
specific case of Amadeus and Galileo which were seen by the
Council as an appropriate response to the challenge of the major
US system vendors -Apollo and Sabre - which were and still are
gaining ground in the European market . These regulations were
adopted by the Commission in July 1988 .
8.     The European Civil Aviation Conference ( ECAC ) drew up
principles for a code of conduct on CRSs which were adopted at
its triennial meeting in June 1988 .    Member States of the
Community and the Commission participated m the formulation of
these principles and supported their approval . At the ECAC
meeting it was indicated that the EC in a matter of montns would
enact these principles .
9.     The Commission Dlock exemption regulation on CRSs is by
definition limited in scope and application ( see para 7 above ) .
It will only apply to jointly-owned systems , viz . currently only
to Amadeus and Galileo and article 86 applies only to dominant
positions . However , other systems of a different nature exist as
well in the Community e.g. systems owned by single companies ,
several of them with their head office in non-Member States .    From
a transport policy point of view this is not a satisfactory
situation . Air Carriers , Travel Agents , Freight forwarders and
Users must have the certainty of e.g. access and neutraiity of
display . It is important , especiaiiy so that Community airlines
can compete on fair and equal terms , that a code of conduct be
established which would apply to these systems as well . For these
reasons the Commission has decided to bring forward proposals for
a general and detailed mandatory code of conduct to apply to all
CRSs offered for use and/ or used in the Community for the
distribution and sale of air transport products irrespective of
the status or nationality of the system vendor , the source of
information used or the location of the relevant central data
processing unit . The Commission has taken account of particular
Community needs and representations from interested parties . The
concern , voiced by Member States , the Economic and Social
Committee and by Amaaeus and Galileo , that the two sets of
Community Regulations should not be m conflict , has been taken
fully into account in the drafting of these two sets of
Regulations .
There is a core area where the two sets of Regulations overlap
and here every effort has been made to impose the same
ODligations and to use the same language . Where , however , the
purpose or scope of the Regulations are different , the texts
diverye .
                                                                      ?
 ---pagebreak---                                    3
                   COMMENTS ON INDIVIDUAL ARTICLES
Article 1
This article sets out the scope of the Regulation . The
Regulation will apply to the terms on which or the way in which
all CRSs are offered and/ or used in the Community . The fact that
a system vendor mignt not De a Community citizen or that the
information mignt come from outside the Community or that the
air transport service concerned might oe outside the Community ,
is   irrelevant .
Article 2
This sets out a series of definitions .
a ) " Air transport product " has Deen defined to include
     non-scheduled as well as scheduled passenger and freight
     services or a combination thereof .
b ) The definition of CRS is limited by the phrase " and which
     makes some or all of these services available to
     subscribers " . If , for example , an airline does not make some
     or all of the services in its CRS available to subscribers
     ( usually travel agents ) it will not be bound by this
     Regulation .
c ) self-explanatory .
d ) The definition of " distribution facilities " is important as
     it further limits the obligations of a system vendor , e.g. in
     Articles 3 and 9 .
     A system vendor is therefore only required to allow
     participation by air carriers in its distribution facilities
     and to make these facilities available to subscribers but it
     is not required to allow access to or make available its
     in-house facilities .
e ) self-explanatory .
f ) self-explanatory .
g ) self-explanatory .
h ) This definition uses the term " city pairs " to cover all
     airports serving the same city .
i ) The purpose behind this definition is to treat scheduled
     passenger services and " seat only " charter services ( where
     allowed ) in the same way and to treat block bookings on
     scheduled flights whicn are sold as part of a package deal in
     the same way as charter services .
 3 ) This is intended to cover any improvement , in terms of
     service or equipment offered to subscribers by a system
     vendor , other than the display of information on schedules ,
     fares , etc . e.g. book-keeping facilities .
 ---pagebreak--- k ) This definition covers travel agents , freight forwarders ,
    companies or individuals which make a written contract or
    other arrangement with a system vendor to use its CRS .
i ) self-explanatory .
Article 3
This requires a system vendor which offers distribution
facilities in a particular sector , viz . scheduled passenger , to
allow any air carrier the opportunity to participate in the
appropriate segment of its distribution facilities . It does not
require a system vendor to provide ail these facilities , it
merely requires a system vendor which provides some or all of
the facilities to allow access to these facilities , subject to
the conditions which tollow relating to the level of fees , the
conditions to be applied and non-discrimination . The article
also allows a system vendor to refuse access if capacity
limits of the system have been reached or if there are technical
constraints outside the system vendor 's control .
Article 3.3(b ) bans exclusive contracts so that air carriers
would be free to participate in several CRSs if they wished .
Article 3.3(c ) guarantees a participating carrier the right to
terminate his contract with a system vendor without penalty
provided he has abided oy the contract for at least a year and
has given notice which need not exceed six months . The provision
requiring a system vendor to stay in the system for at least a
year is designed to compensate a system vendor for any
adaptation/ start up costs that might be involved in admitting a
new carrier to the system .
Article 3.4 . is designed to ensure that a system vendor does not
confer a first class status on some participating carriers to
tne detriment of others . Ail should be given equal opportunity
to acquire any enhancements offered . However , if there are
technical limitations - either within or without the system
vendor 's control - he is not required to offer any further
enhancements .
Article 3.5 . is designed to ensure transparency .
Article 3.6 . is also aimed at transparency and
non-discrimination .
Article 4
Article 4.1 . puts the onus on participating air carriers to
ensure the accuracy , comprehensiveness etc . of data provided for
inclusion in a CRS and article 4.2 . imposes obligations on
system vendors as to how such data will be used .
 ---pagebreak--- Article 4.3 . requires system vendors to load and process all
data equally carefully and quickly Out it allows them to
presence how the data shall De provided and it recognises that
participating carriers may choose different loading methods
which may result m different treatment .
Article 4.4 . is intended to ensure that no airline - whether a
parent carrier or merely a participant in a system - can put its
competitor at a market disadvantage Oy withholding information
from a competing CRS or refusing to allow a competing CRS to
make cookings on its flights . This provision should ce read in
conjunction with Article 8.3 . which deals with the question of
ticketing .
Article 5
Article 5.1 . and 5.2 . imposes an ocligation on a system vendor
to have a principal display and sets out what shall be included
in such a display . If information is provided on charter and
freight services this can oe shown in separate principal
displays .
Article 5.3 . requires the ranking of flight options in the
principal display to ce in accordance with the criteria set out
in the Annex . However , it allows a customer to request a
different display ( but see Article 9.5 . which requires the
system vendor to ensure either through technical means or
through the contract with the sucscricer that the principal
display is provided for each individual transaction ) .
Provision is also made for the criteria to be changed by a
management committee , as provided in Article 5.4 . This procedure
is used so as to allow the ranking criteria to be changed
rapidly in the light of experience of the market and technical
development .
Article 6
This article is concerned with the protection of the
confidentiality of data and the circumstances in which data
generated oy a CRS can oe divulged . Existing legislation dealing
with data protection would supplement these provisions .
Article 7
This is the reciprocity provision exempting a system vendor from
the obligations of the Regulation in respect of a third-country
parent carrier of another CRS to the extent that that CRS does
not conform with the Regulation or provide equivalent
treatment . However , any system vendor wishing to avail of this
provision must notify the Commission 14 days in advance . This
then allows the Commission under Article 11 to decide whether or
not to allow the exemption .
This provision does not apply to Community carriers since they
are required to comply witn the provisions of this Regulation
and their compliance could be assured under the provisions of
Articles 10 to 20 inclusive of this Regulation .
 ---pagebreak--- Article 8
Article 8.1 . prohibits a parent or participating carrier from
making the payment of commission etc . to a subscriDer dependent
on that suDscnoer using a specific CRS .
Article 8.2 . prohiDits a parent or participating air carrier
from insisting that its products are sold or tickets for them
are issued by a specific CRS .
Article 8.3 . makes it clear tnat an air carrier 's Dasic right to
decide under which conditions it will allow a travel agent or
freight forwarder to sell and issue ticjcets for its products is
not affected .
Article 9
This article sets out the terms of the relationship between a
system vendor and a suoscriDer . To a large extent it echoes the
principles contained into Article 3 . A subscriDer is allowed
terminate his contract with a system vendor without penalty
after completing one year provided he has given notice which
need not exceed 3 months . This coincides with the minimum period
of such contracts known to the Commission .
Article 9.5 allows a suDscrioer to re-order data or use
alternative displays in order to meet a preference specifically
expressed Dy a consumer . However , a system vendor must make the
principal display available for each transaction so that the
subscriDer must enter a request specific to that transaction for
a display other than the principal one to De made available .
Articles  10 to 20
These articles give authority to the Commission to investigate
complaints of non-compliance witn the Regulation and set out a
complaints procedure and a system of fines for infringements . It
also allows the Commission to grant exemptions in accordance
with Article 7 ( reciprocity provision ).
It is in accordance with the procedure already approved Dy the
Council in EEC Regulation n° 11 of 1960 on the elimination of
discrimination in respect of prices and conditions of transport .
Article 21
Tnis article applies the Regulation m all Member States from
1 January 1989 to systems offered and / or used for the first
time after that date Dut allows a longer transition period ( i.e.
up to 1 April 1989 ) for existing systems .
 ---pagebreak---                                  -7-
Annex - Ranking Criteria
This Annex applies a set of general criteria to all principal
displays in all sectors - scheduled and non scheduled passenger
services , scheduled and non-scheduled freight services or a
comDination tnereof . It also sets out more precise criteria for
scneculed air services . It stioulu oe noted in this context that
paragraph 2 does not require code-sharing flights to involve a
guarantee that the connecting flight will he held ; it merely
provides that unless there is such a guarantee , then
code-snaring flights shall he treated as connecting flights for
ranking purposes . It would oe open to the committee provided for
in Article 5.4 to prescribe specific criteria for the ranking of
services other than scheduled passenger services .
                                                                  9
 ---pagebreak--- PROPOSAL FOR A COUNCIL REGULATION ON A CODE OF CONDUCT FOR
            COMPUTERISED RESERVATION SYSTEMS
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic
Community , and in particular Article 84(2 ) thereof ,
Having regard to the proposal from the Commission ( 1 ),
Having regard to tne opinion of the European parliament ( 2 ),
Having regard to the Opinion of the Economic and Social
Committee ( 3 ),
Whereas the hulk of airline reservations are made through
computerised reservation systems ( CRSs ) ;
Whereas such systems can , if properly used , provide an important
and useful service to air carriers , travel agents and the
travelling public hy providing easy access to up- to- date and
accurate information on flights , fares and seat availability ,
making reservations and in some cases issuing tickets and
boarding passes ;
Whereas abuses in the form of denial of access to the systems , or
discrimination in the provision , loading or display of data or
unreasonable conditions imposed on participants or subscribers
can seriously disadvantage air carriers , travel agents and
ultimately consumers ;
Whereas this Regulation is without prejudice to the application
of Articles 85 and 86 of the Treaty ;
Whereas Commission Regulation ( EEC ) No 2672 / 88 ( 4 ) exempts from
the provisions of Article 85(1 ) agreements for the common
purchase , development and operation of computerised reservation
systems ;
(1)
(2)
(3)
( 4 ) OJ No L 239 , 30.8.1988 , p. 13
 ---pagebreak---                                 -2-
Whereas a mandatory code of conduct applicable tc all CRSs ana/ or
distribution facilities offered for use and / or used in the
Community could ensure that CRSs are used in a non-discriminacory
and transparent way , subject to certain safeguards , so avoiding
their misuse while reinforcing undistorted competition between
air carriers and between CRSs and thereby protecting the
interests of consumers ;
Whereas it would not be appropriate to impose obligations on a
CRS vendor in respect of an air carrier of a third country which
alone or jointly with others owns and / or controls another CRS
which does not conform with this code or offer equivalent
treatment ;
Whereas a complaints , investigation and enforcement   procedure
for non-compliance with such a cone is desirable ,
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                    -3-
                                ARTICLE 1
This Regulation shall apply to computerised reservation systems
( CRSs ) offered for use and / or used in the territory of the
European Communities for the distribution and sale of air
trcnsport products irrespective of :
- the status or nationality of the system vendor ,
- the source of the inform tion used or the location of the
   relevant central data processing unit ,
- the geographical location of the air transport service
   concerned .
                                ARTICLE 2
For the purposes of this Regulation :
(a)      " air transport product " means a scheduled or non-scheduled
         passenger air service or air freight service or a
         combination of passenger and freight services , including
         any related ancillary services and additional benefits
         offered for sale and/ or sold as an integral part of the
         air service ;
(o)      " CRS " means a computerised reservation system containing
         information about , inter alia , air carriers'
         -  schedules
         - availability
         - fares
         -  rates  and
         - related services
         with or without facilities through which
         - reservations can be made or
         - tickets and airwaybills may be issued , or both
         and which makes some or all of these services available to
         subscribers ;
(c)      " consumer " means any person seeking information about
         and / or intending to purchase an air transport product ;
(d)      " distribution facilities " means facilities provided by a
         system vendor to a subscriber or consumer for the
         provision of information about air carriers' schedules ,
         availability , fares , rates and related services and for
         making reservations and / or issuing tickets , airwaybills
         and for any other related services ;
(e)      " elapsed journey time " means the time difference between
         normal departure and arrival time ;
                                                                      λλ
 ---pagebreak---                                  - 4 -
( f) " parent carrier " means an air carrier which is a system
     vendor or which directly or indirectly alone or jointly
     with others owns or controls a system vendor ;
(g)  " participating carrier " means an air carrier whicn has an
     agreement with a system vendor for the distriDution of its
     air transport products through a CRS . To the extent that a
     parent carrier uses the distribution facilities of its own
     CRS , it shall be considered a participating carrier ;
( h) " principal display " means a comprehensive neutral display
     of data concerning services Detween city pairs , within a
     specified time period , containing inter alia all
     point - to-point air services ;
(1)  " scheduled air service " means a series of flights each
     possessing all the following characteristics ;
       - it is performed by aircraft for the transport        of
          passengers or passengers and cargo ana/ or mail for
          remuneration , in such a manner that on each flight
          seats are available for individual purchase by members
          of the public ( eitner directly from the air carrier or
          from its authorised agents );
        - it is operated so as to serve traffic oetween the same
          two or more points , either :
          ( 1 ) according to a published timetable , or
          ( 2 ) with flights so regular or frequent that they
                constitute a recognisaDly systematic series ;
     To the extent that non-scheduied services provide " seat
     only " fares , which are sold directly by the carrier or its
     authorised agent , they shall be included in the definition
     of scheduled air service ;
(j)  " service enhancement " means any product or service offered
     by a system vendor on its own behalf to subscribers or
     consumers in conjunction with a CRS other than
     distribution facilities ;
( K) " subscriDer " means an undertaking , other than a
     participating carrier , using under contract or other
     arrangement with a system vendor a CRS for the sale of air
     transport products ;
(i)   " system vendor " means any entity and its affiliates which
     are responsible for the operation or marketing of a CRS .
                               ARTICLE 3
1.   A system vendor offering distribution facilities in one of
      the following sectors , namely , scheduled passenger air
      services , non-scheduied passenger air services , scheduled
      air freight services or non-scheduied air freight
      services , shall allow any air carrier the opportunity to
     participate in the appropriate sectoral distribution
      facilities within the available capacity of the system and
     within technical limits outside the control of the system
      vendor .
                                                                  λι
 ---pagebreak---                                     -5-
2.        Any fee charged by a system vendor to participating
          carriers shall De non-discnminatory and reasonably
          related to the cost of the service provided , and shall , in
          particular oe the same for the same level of service .
3 . ( a ) A system vendor shall not
          - attach unreasonable conditions to any contract with a
            participating carrier
          - require the acceptance of supplementary conditions
            which , by their na cure or according to commercial usage ,
            have no connection with participation in its CRS
            and shall apply the same conditions for the same level
            of service .
    ( b ) A system vendor shall not make it a condition
          of participation in its CRS that a participating carrier
          may not at the same time be a participant in another
          system .
    ( c ) A participating carrier shali have the right
          to terminate his contract with a system vendor without
          penalty on giving notice which need not exceed six
          months to expire no earlier than the end of the first
          year .
4.        If tne system vendor adds any improvement to the
          distribution facilities provided or the equipment
          used in tne provision of the facilities , it shall offer *
          these improvements to all participating carriers on the
          same terms and conditions subject to current technical
          limitations .
5.        A system vendor shall , on request , provide to interested
          parties details of current procedures , fees , systems
          facilities , editing and display criteria used . However ,
          this provision does not oblige a system vendor to disclose
          proprietary information such as software programmes .
6.        Any proposed changes to fee levels , conditions or
          facilities offered and the basis therefor shall be
          communicated to all participating carriers on a
          non-discriminatory oasis .
                                 ARTICLE 4
          An air carrier providing material for inclusion in a
          CRS shali ensure that the data submitted are
          comprehensive , accurate , non-misleading and transparent .
2.        A system vendor snail not manipulate material supplied
          oy an air carrier , either directly or indirectly in a
          manner that would lead to inaccurate , misleading    or
          discriminatory information being provided .
                                                                        λ ?
 ---pagebreak---                                 6
3.   A system vendor shall load and process data provided Dy
     participating carriers with equal care and timeliness
     subject to the constraints of the loading method selected
     Dy individual participating carriers and to the standard
     formats used Dy the system vendor .
4.   Suoject to Article 7 , a parent or participating carrier
     may not refuse , except for an objective and legitimate
     reason of a technical or commercial nature , to provide to
     a competing CRS the same information on schedules , fares ,
     rates and availaDility relating to its own services as it
     provides to the CRS in which it is a participating
     carrier , nor shall it refuse to accept a reservation made
     through a competing CRS unless the fee(s ) charged are
     higher than in the CRS of which it is a participating
     carrier .
                            ARTICLE 5
1.   A system vendor shall provide a principal display and
     shall include therein data provided Dy participating
     carriers on schedules , fares , rates , seat and capacity
     availaDility in a clear and comprehensive manner and
     without discrimination or Dias , in particular as regards
     the order in which information is presented . There may De
     separate principal displays for scheduled , charter and
     freight air services .
2.   A system vendor shall not intentionally or negligently
     display inaccurate or misleading information , and in
     particular
     - the criteria to De used for ranking information shall
        not De Dased on any factor directly or indirectly
        relating to carrier identity and shall De applied on a
        non-discnminatory oasis to all participating carriers ;
     - no discrimination on the Oasis of different airports
        serving the same city shall be exercised in constructing
        and selecting city-pairs .
3. ( a ) Ranking of flight options in the principal display , for
         the day or days requested , shall De as set out in the
         Annex unless requested in a different way Dy a consumer
         for an individual transaction .
   ( D ) The Annex may oe amended in accordance with the
         procedure set out in paragraph 4 .
4.   The Commission shall be assisted by a committee composed
     of the representatives of the Member States and chaired
     Dy the representative of the Commission .
     The representative of the Commission shall submit to the
     committee a draft of the measures to be taken . The
     committee shall deliver its opinion on the draft within a
     time limit which the chairman may lay down according to
     the urgency of the matter .
                                                                  ΛΨ
 ---pagebreak---                                   -7-
        The opinion shall he delivered by the majority laid down
        in Article 148(2 ) of the Treaty in the case of decisions
        which the Council is required to adopt on a proposal from
        the Commission . The votes of the representatives of the
        MemDer States within the committee shall be weighted in
        the manner set out in that Article .  The chairman shall not
        vote .
        The Commission shall adopt measures which shall apply
        immediately . However , if these measures are not in
        accordance with the opinion of the committee , they shall
        be communicated by the Commission to the Council
        forthwith . in tha t eventX
        ifhe Commission may defer application of the measures which
        it has decided for a period of not more than one month
        from the date of such communication .
        The Council , acting by a qualified majority , may take a
        different decision within the time limit referred to in
        the previous paragraph .
                               ARTICLE 6
A system vendor shall provide information , statistical or
otherwise , generated by its CRS , other than that offered as an
integral part of the distriDution facilities , only as follows :
      ( a ) information concerning individual bookings shall be
            made available on an equal basis to the air carrier or
            air carriers participating in the service covered by
            the booking ;
      ( b ) information in aggregate or anonymous form when made
            available on request to any air carrier shall be
            offered to all participating air carriers on a
            non-discnminatory basis ;
      ( c ) other information generated by the CRS shall be made
            available with the consent of the air carrier
            concerned and subject to any agreement between a system
            vendor and participating airlines .
                               ARTICLE 7
1.      Subject to Article 11 , the obligations of a system vendor
        under Articles 3 to 6 shall not apply in respect of a
        parent carrier of a third country to the extent that its
        CRS does not conform with this Regulation or does not
        offer Community air carriers equivalent treatment to that
        provided under this Regulation .
2.      A system vendor proposing to avail itself of the
        provisions of paragraph 1 must notify the Commission of
        its intentions and the reasons therefor at least 14 days
        in advance of such action .
                               ARTICLE 8
1 .     A parent or participating carrier shall not link the use
        of any specific CRS by a subscriber with the receipt of
        any commission or other incentive for the sale of or
        issuance of tickets or airwaybills for any of its air
        transport products .
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2. A parent or participating carrier snail not require use of
   any specific CRS by a subscriber for any sale or issuance
   of tickets or airwaybills for any air transport products
   provided either directly or indirectly by itself .
3. Paragraphs 1 and 2 shall be without prejudice to any
   condition which an air carrier may require of a travel
   agent or freight forwarder when authorising them to sell
   ana issue tickets or airwaybills for its air transport
   products .
                          ARTICLE 9
1. A system vendor shall make any of the distribution
   facilities of a CRS available to any subscriber on a
   non-discriminatory basis . Any fee charged shall be
   non-discnminatory and reasonably related to the cost of
   the service provided , and shall , in particular , be the
   same for the same level of service .
2.
   A system vendor shall not require a subscriber to sign an
   exclusive contract , nor directly or indirectly prevent a
   subscriber from subscribing to or using any other system
   or systems .
3. A service enhancement offered to any one subscriber shall
   be offered by the system vendor to all subscribers on a
   non-discriminatory oasis .
4. A system vendor shall not attach unreasonable conditions
   to any contract with a subscriber and in particular a
   subscriber may terminate his contract with a system
   vendor , without penalty , on giving notice which need not
   exceed three months to expire no earlier than the end of
   the first year .
5. A system vendor shall ensure either through technical
   means or through the contract with the subscriber tnat the
   principal display is provided for each individual
   transaction . However , for any one transaction a subscriber
   may re-order data or use alternative displays to meet a
   preference expressed by a consumer .
                          ARTICLE 10
1. Complaints regarding non-observance of this Regulation
   shall be addressed to the Commission .
2. complaints may be submitted by :
    ( a ) Member States ;
    lb ) natural or legal persons who claim a legitimate
   interest .
3. The Commission shall immediately forward to the Member
   States copies of the complaints and applications and of
   the most important documents sent to it or which it sends
   out in the course of such procedures .
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                                  ARTICLE 11
Upon receipt of a notification pursuant to Article 7 the
Commission shall without delay determine whether discrimination
within the meaning of Article 7 exists . If this is found to he
the case the Commission shall decide that the obligations under
this Regulation do not apply to the air carrier concerned and
shall so inform all system vendors in the Community and Member
States . If discrimination within the meaning of Article 7 does
not exist the Commission shall so inform the system vendor
concerned .
                                  ARTICLE 12
1.      In carrying out the duties assigned to it by this
        Regulation , the Commission may obtain all necessary
        information from the Member States and from undertakings
        and associations of undertakings .
2.      The Commission may fix a time limit of not less than one
        month for the communication of the requested information .
3.      When sending a request for information to an undertaking
        or association of undertakings , the Commission shall
        forward a copy of the request at the same time to the
        the Member State in whose territory the head office of the
        undertaking or association of undertakings is situated .
4.      In its request , the Commission shall state the legal oasis
        and purpose of the request and also the penalties for
        supplying incorrect information provided for in Article
        16 ( 1 ) ( a ) .
5.      The owners of the undertakings or their representatives
        and , in the case of legal persons or of companies , firms
        or associations not having legal personality , the person
        authorized to represent them by law or by their rules
        shall be bound to supply the information requested .
6.      All standard contracts between system vendors          and
        participating carriers or subscribers shall be
        communicated by the system vendor to the Commission .
                                  ARTICLE 13
1.      In carrying out the duties assigned to it by this
        Regulation , the Commission may undertake all necessary
        investigations into undertakings and associations of
        undertakings . To this end , officials authorized by the
        Commission shall oe empowered :
        ( a)       to examine the books and other business records ;
        (b)        to take copies of , or extracts from , the books and
                   business records ;
        (c)        to ask for oral explanations on tne spot ;
        (d)        to enter any premises , land and vehicles used by
                   undertakings or associations of undertakings .
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2. The authorized officials of the Commission shall exercise
   tneir powers upon proauction of an authorization in
   writing specifying the subject matter and purpose of the
   investigation and the penalties provided for in Article 16
   ( l)(b ) in cases where production of the required books or
   other business records is incomplete . In good time , before
   the investigation , the Commission shall inform the Member
   State , in whose territory the same is to be made , of the
   investigation and the identity of the authorized
   officials .
3. Officials of the Member State in whose territory the
   investigation is to be maae may assist the Commission
   officials in carrying out their duties , at the request of
   the Memoer State or of the Commission .
4. Where an undertaking opposes an investigation ordered
   pursuant to this Article , the Member State concerned shall
   afford the necessary assistance to the officials
   authorized by the Commission to enable them to make their
   investigation . To this end , Member States shall take the
   necessary measures by 31 July 1989 , after consulting the
   Commission .
                          ARTICLE 14
1. Information acquired as a result of the application of
   Articles 12 and 13 shall be used only for the purposes of
   the relevant request or investigation .
2. Without prejuaice to the provisions of Articles 10 and 20 ,
   the Commission and the competent authorities of the Member
   States , their officials ana other servants shall not
   aisclose information of a kind covered by the obligation
   of professional secrecy which has been acquirea by them as
   a result of the application of this Regulation .
3. The provisions of paragraphs 1 and 2 shall not prevent
   publication of general information or of surveys which do
   not contain information relating to particular
   undertakings or associations of undertakings .
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                              ARTICLE 15
1.     When an undertaking or association of undertakings does
       not supply the information requested within the time limit
       fixed oy the Commission , or supplies incomplete
       information the Commission shall by decision require the
       information to be supplied . The decision shall specify
       what information is required , fix an appropriate time
       limit within which it is to De supplied and indicate the
       penalties provided for in Article 16(1 ) ( a ) as well as the
       right to have the decision reviewed by the Court of
       Justice .
2.     At the same time the Commission shall send a copy of its
       decision to the competent authority of the Member State in
       whose territory the head office of the undertaking or
       association of undertakings is situated .
                              ARTICLE 16
1.     The Commission may , by decision , impose fines on
       undertakings or associations of undertakings of from 1 000
       to 100 OOO ECU where , intentionally or negligently :
       (a)   they supply incorrect information in response to a
             request made pursuant to Article 12 or do not supply
             information witmn the time    limit fixed
       (b)   they produce the required books or other business
             records in incomplete form during investigations or
             refuse to submit to an investigation pursuant to
             Article 13(1 ).
2.     The Commission may , by decision , impose fines on system
       vendors , parent carriers , participating carriers and / or
       subscribers for infringements of this Regulation up to a
       maximum of 10 % of the annual turnover for the relevant
       activity of the undertaking concerned .
       In fixing the amount of the fine , regard shall be had both
       to the gravity and to the duration of the infringement .
3.     Decisions taken pursuant to paragraphs 1 and 2 shall not
       be of a penal nature .
                              ARTICLE 17
The Court of Justice shall have unlimited jurisdiction within the
meaning of Article 172 of the Treaty to review decisions whereoy
the Commission has imposed a fine ; it may cancel , reduce or
increase the fine .
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                             ARTICLE 18
For the purposes of applying Article 16 , the ECU shall he that
adopted in drawing up the budget of the Communities in accordance
with Articles 207 and 209 of the Treaty .
                             ARTICLE 19
1.     Before taking decisions as provided for in Article 16 , the
       Commission shall give the undertakings or associations of
       undertakings concerned the opportunity of being heard on
       the matters to which the Commission takes , or has taken ,
       objection .
2.     If the Commission or the competent authorities of the
       MemDer States consider it necessary , they may also hear
       other natural or legal persons . Applications by such
       persons to oe heard shall be granted when they show a
       sufficient interest .
                             ARTICLE 20
1.     The Commission shall publish the decisions which it adopts
       pursuant to Article 16 .
2.     The publication shall state the names of the parties and
       the main content of the decision ; it shall have regard to
       the legitimate interest of undertakings in the protection
       of their business secrets .
                             ARTICLE 21
This Regulation shall apply from 1 January 1989 to all CRSs
offered for use and/ or used in the Community for the first time
after that date . It shall apply to other CRSs from 1 April 1989 .
This Regulation shall   be binding in its entirety and directly
applicable in all MemDer States .
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                                                   Annex
                             RANKING CRITERIA
General cnteria
1.     The principal displays shall provide a reasonable number
       of travel options from among existing services for any
       city pair requested including indirect services . A
       participating carrier may request the inclusion of an
       indirect service unless the routing is in excess of 130%
       of the great circle distance between the two airports .
2.     A system vendor shall not use the screen space in its
       principal displays in a manner which gives excessive
       exposure to one particular travel option or which displays
       unrealistic travel options .
3.     Where a system vendor chooses to display information in
       relation to the schedules or fares of non-participating
       carriers such information shall be displayed in
       an accurate , non-misleading and non-discriminatory manner
       as between those carriers displayed .
4.     If information as to the number and identity of and
       services / fares / rates offered by air carriers on a point to
       point air service is not comprehensive this shall be
       clearly stated on the relevant display .
Criteria for Scheduled Air Services
1.     Ranking of flight options in the principal display for
       scheduled air services , for the day or days requested ,
       shall be in the following order unless requested in a
       different way by a consumer for an individual transaction :
       i)         all non-stop flights between the city pairs
                  concerned in order of departure time or arrival
                  time
       ii )       otner direct flights , between the city pairs
                  concerned , in order of departure or arrival time
                  and/ or elapsed journey time
       iii )      connecting flights in order of departure or
                  arrival time and/ or elapsed journey time .
       Ranking criteria once chosen , shall be applied
       consistently in any given display .
2.     Scheduled flights involving stops en-route , change of
       aircraft , change of airport and/ or code-sharing    shall be
       clearly identified . Code-sharing flights shall be treated
       as connecting flights unless the code-sharing arrangement
       guarantees emDarkation on the connecting flignt , in which
       instance cone-sharing flights may be displayed in
       preference to normal connecting flights .