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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Krupp Hoesch Stahl v Commission (ECSC) [2003] EUECJ C-195/99P (02 October 2003) URL: http://www.bailii.org/eu/cases/EUECJ/2003/C19599P.html Cite as: [2003] EUECJ C-195/99P |
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JUDGMENT OF THE COURT (Fifth Chamber)
2 October 2003 (1)
(Appeal - Agreements and concerted practices - European producers of beams)
In Case C-195/99 P,
Krupp Hoesch Stahl AG, established in Dortmund (Germany), represented by F. Montag, Rechtsanwalt, with an address for service in Luxembourg,
appellant,
APPEAL against the judgment of the Court of First Instance of the European Communities (Second Chamber, Extended Composition) of 11 March 1999 in Case T-147/94 Krupp Hoesch v Commission [1999] ECR II-603, seeking to have that judgment set aside,
the other party to the proceedings being:
Commission of the European Communities, represented by J. Currall and W. Wils, acting as Agents, assisted by H.-J. Freund, Rechtsanwalt, with an address for service in Luxembourg,
defendant at first instance,
THE COURT (Fifth Chamber),
composed of: M. Wathelet, President of the Chamber, D.A.O. Edward, A. La Pergola, P. Jann (Rapporteur) and S. von Bahr, Judges,
Advocate General: C. Stix-Hackl,
Registrar: M.-F. Contet, Principal Administrator,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 31 January 2002,
after hearing the Opinion of the Advocate General at the sitting on 26 September 2002,
gives the following
Facts and the contested decision
The proceedings before the Court of First Instance and the judgment under appeal
Forms of order sought by the parties
- set aside the judgment under appeal, in so far as it imposed on the appellant a fine of EUR 9 000 in paragraph (1) of the operative part, dismissed the appellant's action in paragraph (2) of the operative part and ordered the appellant to bear its own costs and to pay half of the Commission's costs in paragraph (3) of the operative part;
- annul Articles 1, 3 and 4 of the contested decision;
- order the Commission to pay the costs of the proceedings at first instance and those of the present appeal.
- dismiss the appeal;
- order the appellant to pay the costs.
The grounds of appeal
1. infringement of the Commission's Rules of Procedure as laid down in Commission Decision 93/492/Euratom, ECSC, EEC of 17 February 1993 (OJ 1993 L 230, p. 15) (the 1993 Rules of Procedure);
2. infringement of Article 33 of the ECSC Treaty;
3. infringement of Article 65(1) of the ECSC Treaty as regards the exchange of information, the interpretation of the concept of normal competition and the appellant's participation in the events which were the subject of complaint;
4. error in law as regards the conduct complained of in relation to price-fixing on the German market;
5. infringement of Article 65(5) of the ECSC Treaty as regards the assessment of fault on the part of the appellant;
6. infringement of the obligation to state reasons under Article 15 of the ECSC Treaty;
7. infringement of Article 6 of the European Convention for the Protection of Human Rights and Fundamental Freedoms, signed in Rome on 4 November 1950 (the ECHR), as a result of the allegedly excessive duration of the proceedings before the Court of First Instance.
The appeal
The first ground of appeal
The first limb of the first ground of appeal
Findings of the Court
The second limb of the first ground of appeal
Findings of the Court
- paragraph 83, in which the Court of First Instance assumed that documents C(94)321/2 and C(94)321/3 were annexed to the minutes;
- paragraph 84, in which the Court of First Instance took the view that it had not been established that there was any substantive difference between the notified version of the contested decision and that annexed to the minutes;
- paragraph 85, in which the Court of First Instance ruled that documents C(94)321/2 and C(94)321/3 had to be regarded as having been authenticated by the signatures of the President and the Secretary-General of the Commission on the first page of the minutes;
- paragraph 86, in which the Court of First Instance decided that the certification of authenticity by the titular Secretary-General of the Commission provided sufficient proof for legal purposes that the original version of the minutes bore the original signatures of the President and the Secretary-General of the Commission; and
- paragraph 88, in which the Court of First Instance held that the minutes had been properly signed by the President and the Secretary-General of the Commission on 23 February 1994.
The second ground of appeal
The Court of Justice shall have jurisdiction in actions brought by a Member State or by the Council to have decisions or recommendations of the Commission declared void on grounds of lack of competence, infringement of an essential procedural requirement, infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. The Court of Justice may not, however, examine the evaluation of the situation, resulting from economic facts or circumstances, in the light of which the Commission took its decisions or made its recommendations, save where the Commission is alleged to have misused its powers or to have manifestly failed to observe the provisions of this Treaty or any rule of law relating to its application.
Undertakings or associations referred to in Article 48 may, under the same conditions, institute proceedings against decisions or recommendations concerning them which are individual in character or against general decisions or recommendations which they consider to involve a misuse of powers affecting them.
It must therefore be concluded that, in recitals 263 to 272 of the [contested] decision, the information exchange systems in question were regarded as being separate infringements of Article 65(1) of the Treaty. In so far as they seek to alter this legal assessment, the arguments submitted by the Commission in its reply of 19 January 1998 and at the hearing must therefore be rejected.
Findings of the Court
The third ground of appeal
The first limb of the third ground of appeal
The matters set out in recitals 49 to 60 of the [contested] decision confirm that, having regard to all the circumstances of the case, in particular the fact that the information distributed was up-to-date, broken down and intended only for producers, the product characteristics, and the degree of market concentration, the arrangements in question clearly affected the participants' decision-making independence.
It follows that the information exchange systems in question appreciably reduced the decision-making independence of the participating producers by substituting practical cooperation between them for the normal risks of competition.
Findings of the Court
- in principle, where there is a truly competitive market, transparency between traders is likely to lead to intensification of competition between suppliers, since the fact that in such a situation a trader takes into account information on the operation of the market, made available to him under the information exchange system, in order to adjust his conduct on the market, is not likely, having regard to the atomised nature of the supply, to reduce or remove for the other traders all uncertainty about the foreseeable nature of his competitors' conduct;
- however, on a highly concentrated oligopolistic market, the exchange of market information is liable to enable undertakings to be aware of the market positions and strategies of their competitors and thus to impair appreciably the competition which exists between traders.
The second limb of the third ground of appeal
Findings of the Court
The third limb of the third ground of appeal
The argument that the applicant's participation in the systems at issue had no anti-competitive effect as a result of the small market share which it held and of the fact that the statistics in question did not include figures on sales of U sections, the only product relevant to the applicant, must also be rejected. Although the applicant held only a small market share, its participation in the systems at issue nevertheless enabled the other participating undertakings to obtain a comprehensive and up-to-date overview of all orders and deliveries of beams on the various national markets, thus increasing the value and reliability of the information systems in question. More specifically, by their very nature, the data provided by the applicant enabled the other undertakings producing U sections to ascertain in a very precise manner how its sales of those products were developing on the various geographical markets and, in particular, to determine to what extent the applicant was respecting traditional flows of trade. Finally, if, as the applicant maintains, the data received by it were of no use to it, it would be difficult to explain why it participated in the systems concerned.
Findings of the Court
The fourth limb of the third ground of appeal
The Court observes, finally, that, having regard to the nature of the discussions conducted within the Poutrelles Committee, of which the applicant was regularly informed by way of the minutes made available to it by the Walzstahl-Vereinigung, and to the wording of the 1968 communication, the undertakings involved could not have had any reasonable doubt that the exchanges in question tended to prevent, restrict or distort normal competition and that they were consequently prohibited under Article 65(1) of the Treaty. The same conclusion also follows from the considerations set out by the Court in Part C below. In any event, the alleged difficulties which might exist in assessing the prohibited nature of a course of conduct cannot affect the prohibition itself, which is objective in nature. The Court also takes the view that, in recitals 266 to 271 of the [contested] decision, the Commission has provided adequate legal grounds to support its view that the arrangements in question were contrary to normal competition.
Findings of the Court
101 The Court observes, first, that the U sections manufactured by the applicant were covered by the system of monitoring orders and deliveries organised by the Poutrelles Committee. It is also undisputed that U sections fall within the definition of beams used by the Commission for the purposes of the [contested] decision (see recital 3).
102 Second, the parties are agreed that, in the present case, the applicant regularly sent to the Walzstahl-Vereinigung, during the period of infringement, figures relating to its orders and deliveries of U sections and that that association forwarded those figures, together with the individual figures on the orders and deliveries of the other German producers of beams, to the secretariat of the Poutrelles Committee, provided at that time by Usinor Sacilor.
103 Third, it is likewise undisputed that, through the Walzstahl-Vereinigung, the applicant received tables drawn up by the secretariat of the Poutrelles Committee on the basis of the figures provided by the applicant and the corresponding figures supplied by its competitors. Those tables contained figures for the orders and deliveries of beams, broken down for each undertaking and for each country, of all the undertakings participating in the system, including the applicant. In those circumstances, the only possible explanation for the regular transmission of the applicant's figures is that it consented to their being communicated to its competitors and, more generally, to a mutual exchange with the other participating undertakings.
104 It is true that, according to the [contested] decision (recital 38), the applicant did not attend the meetings of the Poutrelles Committee, so that, in the absence of evidence to the contrary, the discussions held on the basis of the figures obtained under the monitoring system (see recitals 268 and 49 to 60 of the [contested] decision) did not form part of the complaint raised against the applicant. However, the fact that the applicant was not an active member of the Poutrelles Committee does not establish that it did not act in line with the agreement which was the subject of complaint. Its actual participation in a system of reciprocal exchanges, of the operation of which it was aware, is sufficient to establish that it acted in accordance with the agreement on that system. The applicant has not denied that it was kept informed by the Walzstahl-Vereinigung of all the deliberations of the Poutrelles Committee (see recital 33 of the [contested] decision).
105 Finally, the applicant has not denied its participation, through the Walzstahl-Vereinigung, in the exchange of information referred to in recital 272 of the [contested] decision.
106 Accordingly, the applicant's argument denying its participation in the exchange of information in question must be rejected.
The fourth ground of appeal
156 In recital 152 (facts) and the fourth indent of recital 273 (law) of the [contested] decision, the Commission accuses the applicant of having concluded an agreement on fixing prices on the German market with TradeARBED. The Commission bases its accusation on a hand-written note on the meeting of the VA Profilstahl group of 18 April 1989, which was drafted by the Walzstahl-Vereinigung.
157 The applicant submits, first, that it was not represented at the meeting in question. Second, the hand-written note on that meeting, drafted by the Walzstahl-Vereinigung (recital 152 of the [contested] decision), does not permit the conclusion to be drawn that the applicant participated in a pricing agreement prior to that meeting. In view of the oligopolistic structure of the market, the fact that TradeARBED expected the applicant to apply certain agreed prices does not necessarily mean that it was bound by any agreement on those prices. Moreover, according to the wording of that note, the applicant was to respect (respektieren) the prices in question (an expression which could apply to a third party) and not to comply with (einhalten) contractual obligations (which expression is generally used for parties to an agreement). The link between the abovementioned meeting and that held in Düsseldorf on 20 January 1988, relied on by the Commission to challenge that reasoning, has, the appellant submits, been fabricated by the defendant.
158 In addition, there is no sufficiently specific indication in the Walzstahl-Vereinigung's note as to when the alleged agreement on prices was concluded, its specific purpose or the undertakings party to it. That failure to state specific details is prejudicial to the applicant's rights of defence and precludes the argument that the alleged infringement has become time-barred from being excluded.
159 In any event, the applicant argues, it is clear from the abovementioned note that it did not respect any prices which might have been agreed, which shows that it was not a party to the alleged agreement.
160 The Court notes that the relevant passage of the note on the meeting of 18 April 1989 (document No 56) reads as follows:
Arbed vetoed higher size extras for UPN 320 and larger sizes (the other producers - especially Hoesch [Stahl AG, a company which merged with Krupp Stahl to form the appellant company] - should first respect the agreed prices).
161 It is clear from the fourth indent of recital 273 of the [contested] decision that the Commission is not alleging that the applicant participated in an agreement on prices concluded at the meeting of 18 April 1989 but that it was party to a prior agreement concluded with TradeARBED. The parties also agree that the applicant produced the UPN 320 sections to which the note on the meeting of 18 April 1989 refers.
162 The Court takes the view that, in the context of the present case, that note provides sufficient proof for legal purposes that TradeARBED and Hoesch concluded an agreement on prices at a date prior to 18 April 1989. The fact that the Commission was able neither to determine the date of that agreement nor its specific purpose (except that it concerned products manufactured by Hoesch) does not affect the finding that there was such an agreement at that time.
Findings of the Court
The fifth ground of appeal
Findings of the Court
The sixth ground of appeal
Findings of the Court
The seventh ground of appeal
Findings of the Court
Costs
136. Under Article 69(2) of the Rules of Procedure, which is applicable to appeal proceedings by virtue of Article 118 of those Rules, the unsuccessful party is to be ordered to pay the costs if they have been applied for in the successful party's pleadings. Since the Commission has applied for costs to be awarded against the appellant and since that party has been unsuccessful in all of its grounds of appeal, it must be ordered to pay the costs.
On those grounds,
THE COURT (Fifth Chamber)
hereby:
1. Dismisses the appeal;
2. Orders Krupp Hoesch Stahl AG to pay the costs.
Wathelet
Jannvon Bahr
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Delivered in open court in Luxembourg on 2 October 2003.
R. Grass M. Wathelet
Registrar President of the Fifth Chamber
1: Language of the case: German.