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JUDGMENT OF THE COURT OF FIRST INSTANCE (Third Chamber, Extended Composition)
16 September 1998 (1)
(Competition - Remail - Action for annulment - Partial rejection of a complaint)
In Cases T-133/95 and T-204/95,
International Express Carriers Conference (IECC), a professional organisation established under Swiss law, having its headquarters in Geneva (Switzerland), represented by Éric Morgan de Rivery, of the Paris Bar, and Jacques Derenne, of the Brussels and Paris Bars, with an address for service in Luxembourg at the Chambers of Alex Schmitt, 62 Avenue Guillaume,
applicant,
v
Commission of the European Communities, represented initially by Francisco Enrique González-Díaz, of its Legal Service, and Rosemary Caudwell, a national official on secondment to the Commission, and subsequently by Rosemary Caudwell and Fabiola Mascardi, a national official on secondment to the Commission, acting as Agents, assisted by Nicholas Forwood QC, with an address for service in Luxembourg at the office of Carlos Gómez de la Cruz, also of its Legal Service, Wagner Centre, Kirchberg,
defendant,
supported by,
in Cases T-133/95 and T-204/95,
United Kingdom of Great Britain and Northern Ireland, represented by Stephanie Ridley, of the Treasury Solicitor's Department, and, during the oral procedure, also by Nicholas Green QC, acting as Agents, with an address for service in Luxembourg at the British Embassy, 14 Boulevard Roosevelt,
Deutsche Post AG, represented by Dirk Schroeder, Rechtsanwalt, Cologne, with an address for service in Luxembourg at the Chambers of Loesch and Wolter, 11 Rue Goethe,
and
The Post Office, represented by Ulick Bourke, Solicitor of the Supreme Court of England and Wales, and, during the oral procedure, also by Stuart Isaacs and Sarah Moore, Barristers, with an address for service in Luxembourg at the Chambers of Loesch and Wolter, 11 Rue Goethe,
and, in Case T-133/95,
La Poste, represented by Hervé Lehman and Sylvain Rieuneau, of the Paris Bar, with an address for service in Luxembourg at the Chambers of Aloyse May, 31 Grand-Rue,
interveners,
APPLICATIONS for, in substance, the annulment of the Commission decisions of 6 April 1995 and 14 August 1995, by which the Commission definitively rejected that part of the complaint filed by the applicant on 13 July 1988 against the interception, pursuant to Article 25 of the Universal Postal Union Convention, by a number of public postal operators, of mail which had been the subject of remailing,
THE COURT OF FIRST INSTANCE
OF THE EUROPEAN COMMUNITIES (Third Chamber, Extended Composition),
composed of: B. Vesterdorf, President, C.P. Briët, P. Lindh, A. Potocki and J.D. Cooke, Judges,
Registrar: H. Jung,
having regard to the written procedure and further to the hearing on 13 May 1997,
gives the following
The facts
The International Express Carriers Conference (IECC) and remail
- 'ABC remail', where mail originating in Country A is transported by private companies to Country B and put into the postal system there for forwarding via the traditional international postal system to Country C, where the final addressee resides;
- 'ABB remail', where mail originating in Country A is transported by private companies to Country B and put into the postal system there for delivery to final addressees in Country B; and
- 'ABA remail', where mail originating in Country A is transported by private companies to Country B and put into the postal system there in order to be sent via the traditional international postal system back to Country A, where the final addressee resides.
Terminal dues and the Universal Postal Union Convention
'1. A member country shall not be bound to forward or deliver to the addressee letter-post items which senders resident in its territory post or cause to be posted in a foreign country with the object of profiting by the lower charges in force there. The same applies to such items posted in large quantities, whether or not such postings are made with a view to benefiting from lower charges.
2. Paragraph 1 shall be applied without distinction both to correspondence made up in the country where the sender resides and then carried across the frontier and to correspondence made up in a foreign country.
3. The administration concerned may either return its items to origin or charge postage on the items at its internal rates. If the sender refuses to pay the postage, the items may be disposed of in accordance with the internal legislation of the administration concerned.
4. A member country shall not be bound to accept, forward or deliver to the addressees letter-post items which senders post or cause to be posted in
large quantities in a country other than the country in which they reside. The administration concerned may send back such items to origin or return them to the senders without repaying the prepaid charge.'
The IECC's complaint and the 1987 CEPT Agreement
The Commission's handling of the complaint
No 99/63'), should the Commission consider it unnecessary to adopt a decision prohibiting the actions of the public postal operators.
'So far as the IECC is aware, all of the examples of restriction cited by the IECC represented implementation of Article 23(4) of the 1984 Universal Postal Convention against ABC remail. Since your February 17 letter makes no reference to restrictions on ABC remail, the IECC cannot regard it as an adequate justification for rejecting the IECC's complaint.'
'4. The comments subsequently submitted by your legal representative, [...], on 22 February 1995 do not, for the reasons set out below, contain any arguments which would justify a change in the Commission's position. The purpose of the present letter is to inform you about the final decision which the Commission has reached with regard to the allegations in your complaint relating to the interception of mail on the basis of Article [23] of the UPU Convention.
5. Summarised briefly, the Commission's letter sent to you on 17 February 1995 pursuant to Article 6 of Regulation No 99/63 identified four types of mail items
which have been subject to interception on the basis of the UPU Convention, namely commercial physical ABA remail, non-commercial or private physical ABA remail, so-called "non-physical" ABA remail [...] and normal cross-border mail [...]
6. With respect to commercial physical ABA remail, the Commission's position is that to the extent the commercial collection of mail from residents in country B for subsequent remailing in country A to final destinations in country B constitutes a circumvention of the national monopoly for domestic letter delivery laid down by the law of country B, the interception of such mail when it is re-entering country B may be considered to be legitimate action under the current circumstances and therefore does not constitute an abuse of a dominant position in the sense of Article 86 of the EC Treaty. [...] [The] Commission [...] has [...] specifically noted that such circumvention of the national monopoly is "rendered profitable because of the present unbalanced levels of terminal dues" and that it is precisely for this reason that some form of protection is justifiable at this stage. [...]
7. With respect to the interception of non-commercial physical ABA remail, "non-physical" remail and normal cross-border mail, the Commission's position is that to the extent the IECC's members do not engage in activities involving this type of mail, they are not harmed in their business activities by the interception of such mail and thus have no legitimate interest as required pursuant to Article 3(2) of Regulation No 17 for applications to the Commission with respect to infringements of the competition rules.
[...] In the Commission's view [...] so-called "non-physical remail" involves the following scenario: a multinational company, for example a bank, [...] sets up a central printing and mailing facility in one particular Member State "A"; information is sent by electronic means from all the bank's subsidiaries and branches to the central service centre, where the information is transformed into actual physical letter-items, e.g. bank statements, which are then prepared for postage and submitted to the local postal operator [...]
[...] [There] are in our view no indications as to how the IECC's members could be involved in this type of arrangement. [...]
8. For the above considerations I inform you that your application of 13 July 1988 pursuant to Article 3(2) of Regulation No 17/62, as far as the interception of commercial physical ABA remail, non commercial physical ABA remail, "non-physical" remail and normal cross-border mail is concerned, is hereby rejected.'
'(A) Interception of ABA remail
3.[...] [You] have received a letter dated 6 April 1995 [...] indicating that the part of your complaint relating to the interception of commercial physical ABA remail, non-commercial physical ABA remail, "non-physical" remail and normal cross-border mail has been rejected. [...]
(B) Interception of ABC remail
[...]
6. The letter from [the IECC] of 9 June 1995 states that (i) the Commission no longer has jurisdiction to take a further decision in this matter, and (ii) even if the Commission had such jurisdiction, the rejection of this aspect of the complaint [...] was inappropriate for a number of reasons. [...]
[...]
11. On 21 April 1989 the UK Post Office gave assurances to the Commission that it had not itself used powers under article 23(4) UPU, nor did it intend in future to do so. Likewise, the then German Bundespost Postdienst informed the Commission on 10 October 1989 that it no longer applied Article 23(4) to ABC remail between Member States. [...]
[...]
13. Although it is true that the Commission may adopt a formal prohibition decision regarding anti-competitive behaviour which has in the meantime been terminated, it is not under an obligation to do so and will decide whether such a step is appropriate in the specific circumstances of an individual case. In the case at hand there is no evidence that the two postal operators referred to in the IECC's complaint of 1988 [...] have not abided by the undertaking which they each gave to the Commission in 1989 to refrain from invoking Article 23(4) with respect to ABC remail. [...]
14.5. [...] The Commission would point out that the mere existence of Article 23/25 of the UPU is not necessarily contrary to the Community competition rules: it is only the exercise of the possibilities of action granted by Article 23/25 in certain circumstances - i.e. between Member States - which may constitute a breach of those rules. [...]
15. The IECC's request that strict penalties be imposed on the postal administrations in order to bring an end to the violations of EC competition law is inconsistent with the IECC's inability to produce any evidence that the infringements are continuing or that there is a real danger of their resumption. [...]
[...]
18. [...] The French Post Office replied on 24 October 1990 maintaining that it believed [...] use of Article 23 UPU to be legitimate under Community law. The incident [referred to in paragraph 13 of the present judgment] was subsequently referred to in the Statement of Objections of 5 April 1993 [...]: in its response to the Statement of Objections, the French Post Office reiterated its earlier position that the incident was not incompatible with Community law.
19. In the circumstances of the case, taking into account the isolated nature of the incident and that there is no evidence of recurrence of the behaviour, the Commission does not believe that it is necessary to take a prohibition decision against the French Post Office. [...]'.
Procedure
Forms of order sought by the parties
In Case T-133/95
- annul the Commission decision of 6 April 1995;
- order such further or other relief as the Court considers appropriate in order for the Commission to comply with Article 176 of the Treaty;
- order the Commission to pay the costs.
- declare inadmissible the statement in intervention of the Post Office;
- order the interveners to pay the costs relating to the observations on their interventions;
- order production of a number of documents.
- dismiss the application;
- order the applicant to pay the costs.
- dismiss the application;
- order the applicant to pay the costs of its intervention.
- dismiss the application;
- order the applicant to pay the costs of its intervention.
In Case T-204/95
- declare the Commission's letter of 14 August 1995 to be non-existent;
- in the alternative, annul the Commission decision of 14 August 1995 and order such further or other relief as the Court considers appropriate in order for the Commission to comply with Article 176 of the Treaty;
- order the Commission to pay the costs.
- declare the Commission's letter of 12 April 1995 to be non-existent;
- order the Commission, pursuant to Articles 64 and/or 65 of the Rules of Procedure, to produce, before the hearing, a number of documents on which it relied in its decision or in its defence, or, at least, in the event that confidentiality is raised, to allow the Court to examine those documents.
- declare inadmissible the statement in intervention of the Post Office;
- order the interveners to pay the costs relating to the observations on their interventions;
- order production of a number of documents.
- dismiss the application;
- order the applicant to pay the costs.
- dismiss the application;
- order the applicant to pay the costs, including those of Deutsche Post.
Admissibility of the Post Office's statements in intervention
the forms of order sought by the Commission, notwithstanding the fact that there were no formal submissions to that effect. The applicant could not therefore have been in any serious doubt as to the scope or purpose of the statements in intervention. It should also be noted that the Post Office's applications to intervene contained, in accordance with Article 115(2)(e) of the Court's Rules of Procedure, an indication of the forms of order sought in support of which leave to intervene was being applied for, and that the abovementioned orders of 6 February 1996 and 13 May 1996, in paragraph (1) of their respective operative parts, granted leave to the Post Office to intervene 'in support of the form of order sought by the defendant'. In those circumstances, the submission of the applicant must be rejected.
Admissibility of the claim for an order requiring the Commission to adopt appropriate measures to comply with its obligations under Article 176 of the Treaty
Substance
A - Scope of the decisions of 6 April 1995 and 14 August 1995
Arguments of the parties
pursuant to Article 6 of Regulation No 99/63, related to the entire second part of the complaint.
Findings of the Court
B - Pleas in law specific to Case T-133/95
The first plea in law, alleging breach of Article 190 of the Treaty
Arguments of the parties
Findings of the Court
It should be pointed out in this regard that the separate treatment of this aspect of the complaint does not affect the examination of its other aspects. Nor does it appear from the case-file that the applicant has argued that those different aspects could not be treated separately, even though it was clear that the Commission was concentrating its examination on the application of Article 85 of the Treaty to the CEPT Agreement and on the application of Article 86 to the alleged interception of remail.
The second plea in law, alleging breach of Article 3(2)(b) of Regulation No 17
Arguments of the parties
UPU Convention and the doctrine of non-physical remail, a large consignment of ABC mail sent by the Swiss company Matra AG.
Findings of the Court
The third plea in law, alleging infringement of Articles 85 and 86 of the Treaty
The first and second limbs
- Arguments of the parties
such interception does not necessarily constitute the exercise of a regulatory function.
- Findings of the Court
The third and fourth limbs
C - Forms of order sought and pleas in law specific to Case T-204/95
The main claims for an order declaring that the letter of 12 April 1995 and the decision of 14 August 1995 are non-existent
Arguments of the parties
Findings of the Court
The alternative claim for annulment of the decision of 14 August 1995
1. The first plea in law, alleging infringement of Article 190 of the Treaty
(a) The first limb: failure to state reasons in regard to the alleged infringement of Article 85 of the Treaty by the public postal operators
Arguments of the parties
Findings of the Court
(b) The second limb: insufficient reasoning in regard to ABC remail
Arguments of the parties
provided the undertakings it had not found or obtained any evidence that they were continuing to intercept ABC remail.
Findings of the Court
2. The second plea in law, alleging infringement of Articles 85 and 86 of the Treaty, manifest errors in the assessment of the facts and errors of law
(a) The first limb, concerning ABC remail
Arguments of the parties
to obtain than proof concerning financial activities between a State and a private company.
Findings of the Court
carefully examined the facts of the case, it is unnecessary for it to examine that complaint any further.
- Deutsche Post
have any legitimate interest, and not ABC remail. Those documents cannot therefore affect the validity of the decision of 14 August 1995 relating to ABC remail alone.
- The Post Office
intercept mail since the Post Office's letter of January 1987 addressed, in particular, to another Community public postal operator, in the light of the undertaking given by Deutsche Post and the lack of evidence that mail had been intercepted by other public postal operators, provided a sufficient basis for the Commission to conclude that there was no further risk that the Post Office would resume this practice of incitement and that it was therefore unnecessary to examine the complaint further in that connection.
- La Poste
(b) The second limb: the assessment of the existence of Article 23 of the UPU Convention with regard to competition law
Arguments of the parties
necessarily contrary to the Community competition rules and that only the exercise of the possibilities of action granted by that provision could, in certain circumstances - that is to say, between Member States - constitute a breach of those rules.
Findings of the Court
that provision could come within the scope of the Community competition rules, provided that trade between Member States was affected.
(c) The third limb: infringement of Articles 85 and 86 of the Treaty by reason of the absence of a prohibition decision
Arguments of the parties
Findings of the Court
D - Pleas in law common to Cases T-133/95 and T-204/95
The pleas in law alleging misuse of powers
Arguments of the parties
its complaint only after it had informed that Minister. The applicant accordingly takes the view that the Commission misused its powers by thus submitting confidential information to third parties prematurely. That letter also demonstrates the Commission's wish not to intervene in numerous cases of interceptions of mail so as not to displease the German authorities.
Findings of the Court
statement of 7 April 1993 by Mr Van Miert, cited by the applicant, must also be construed in the light of this twin approach. In a case such as that here at issue, which formed part of the more general background to the Commission's thinking on the future of the postal sector within the Community, this twin approach was justified. There is therefore nothing to justify the view that this twin approach reflects a misuse of powers vitiating the decisions of 6 April 1995 and 14 August 1995.
The plea in law alleging infringement of certain general principles of law
Arguments of the parties
Findings of the Court
of the scope of that decision (see paragraphs 58 to 62 above) that this was not the case. The first limb of the plea must therefore be rejected.
The request for production of documents
Costs
On those grounds,
THE COURT OF FIRST INSTANCE (Third Chamber, Extended Composition)
hereby:
1. Joins Cases T-133/95 and T-204/95 for the purposes of the judgment;
2. Annuls the decision of 6 April 1995 in so far as it concerns commercial physical ABA remail;
3. Dismisses the remainder of the actions;
4. Orders the Commission to bear the applicant's costs in Case T-133/95;
5. Orders the applicant to bear the Commission's costs in Case T-204/95;
6. Orders the interveners to bear their own costs in Cases T-133/95 and T-204/95.
Vesterdorf
Potocki Cooke
|
Delivered in open court in Luxembourg on 16 September 1998.
H. Jung B. Vesterdorf
Registrar President
The facts II - 3
The International Express Carriers Conference (IECC) and remail II - 3
Terminal dues and the Universal Postal Union Convention II - 3
The IECC's complaint and the 1987 CEPT Agreement II - 5
The Commission's handling of the complaint II - 6
Procedure II - 10
Forms of order sought by the parties II - 11
In Case T-133/95 II - 11
In Case T-204/95 II - 12
Admissibility of the Post Office's statements in intervention II - 13
Admissibility of the claim for an order requiring the Commission to adopt appropriate measures to comply with its obligations under Article 176 of the Treaty II - 14
Substance II - 14
A - Scope of the decisions of 6 April 1995 and 14 August 1995 II - 14
Arguments of the parties II - 14
Findings of the Court II - 15
B - Pleas in law specific to Case T-133/95 II - 15
The first plea in law, alleging breach of Article 190 of the Treaty II - 16
Arguments of the parties II - 16
Findings of the Court II - 16
The second plea in law, alleging breach of Article 3(2)(b) of Regulation No 17 II - 17
Arguments of the parties II - 17
Findings of the Court II - 18
The third plea in law, alleging infringement of Articles 85 and 86 of the Treaty II - 19
The first and second limbs II - 19
- Arguments of the parties II - 19
- Findings of the Court II - 20
The third and fourth limbs II - 22
C - Forms of order sought and pleas in law specific to Case T-204/95 II - 22
The main claims for an order declaring that the letter of 12 April 1995 and the decision of 14 August 1995 are non-existent II - 22
Arguments of the parties II - 22
Findings of the Court II - 23
The alternative claim for annulment of the decision of 14 August 1995 II - 24
1. The first plea in law, alleging infringement of Article 190 of the Treaty II - 24
(a) The first limb: failure to state reasons in regard to the alleged infringement of Article 85 of the Treaty by the public postal operators II - 24
Arguments of the parties II - 24
Findings of the Court II - 24
(b) The second limb: insufficient reasoning in regard to ABC remail II - 24
Arguments of the parties II - 24
Findings of the Court II - 25
2. The second plea in law, alleging infringement of Articles 85 and 86 of the Treaty, manifest errors in the assessment of the facts and errors of law II - 26
(a) The first limb, concerning ABC remail II - 26
Arguments of the parties II - 26
Findings of the Court II - 28
- Deutsche Post II - 29
- The Post Office II - 30
- La Poste II - 31
(b) The second limb: the assessment of the existence of Article 23 of the UPU Convention with regard to competition law II - 31
Arguments of the parties II - 31
Findings of the Court II - 32
(c) The third limb: infringement of Articles 85 and 86 of the Treaty by reason of the absence of a prohibition decision II - 33
Arguments of the parties II - 33
Findings of the Court II - 33
D - Pleas in law common to Cases T-133/95 and T-204/95 II - 34
The pleas in law alleging misuse of powers II - 34
Arguments of the parties II - 34
Findings of the Court II - 35
The plea in law alleging infringement of certain general principles of law II - 37
Arguments of the parties II - 37
Findings of the Court II - 37
The request for production of documents II - 38
Costs II - 38
1: Language of the cases: English.
ECR