JUDGMENT OF THE COURT (Fifth Chamber)
16 March 2000 (1)
(Competition - International maritime transport - Liner conferences - Regulation (EEC) No 4056/86 - Article 86 of the EC Treaty (now Article 82 EC) - Collective dominant position - Exclusivity agreement between national authorities and liner conferences - Liner conference insisting on application ofthe agreement - Fighting ships - Loyalty rebates - Rights of defence - Fines - Assessment criteria)
In Joined Cases C-395/96 P and C-396/96 P,
Compagnie Maritime Belge Transports SA (C-395/96 P), established in Antwerp, Belgium,
Compagnie Maritime Belge SA (C-395/96 P), established in Antwerp,
and
Dafra-Lines A/S (C-396/96 P), established in Copenhagen, Denmark,
represented by M. and D. Waelbroeck, of the Brussels Bar, with an address for service in Luxembourg at the Chambers of E. Arendt, 34 Rue Philippe II,
appellants,
APPEAL against the judgment of the Court of First Instance of the European Communities (Third Chamber, Extended Composition) of 8 October 1996 in Joined Cases T-24/93 to T-26/93 and T-28/93 Compagnie Maritime Belge Transports and Others v Commission [1996] ECR II-1201, seeking to have that judgment set aside,
the other parties to the proceedings being:
Commission of the European Communities, represented by R. Lyal, of its Legal Service, acting as Agent, assisted by J. Flynn, Barrister, with an address for service in Luxembourg at the office of C. Gómez de la Cruz, of the same service, Wagner Centre, Kirchberg,
defendant at first instance,
Grimaldi, established in Palermo, Italy,
and
Cobelfret, established in Antwerp,
represented by M. Clough, Solicitor, with an address for service in Luxembourg at the Chambers of A. May, 31 Grand-Rue,
interveners at first instance,
Deutsche Afrika-Linien GmbH & Co., established in Hamburg, Germany,
Nedlloyd Lijnen BV, established in Rotterdam, Netherlands,
applicants at first instance,
THE COURT (Fifth Chamber),
composed of: D.A.O. Edward (Rapporteur), President of the Chamber, J.C. Moitinho de Almeida, L. Sevón, C. Gulmann and P. Jann, Judges,
Advocate General: N. Fennelly,
Registrar: H. von Holstein, Deputy Registrar,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 14 May 1998,
after hearing the Opinion of the Advocate General at the sitting on 29 October 1998,
gives the following
'Article 1
The Cewal, Cowac and Ukwal shipping conferences and the undertakings that are members thereof, a list of which is attached as Annex I to this decision, have infringed Article 85(1) of the EEC Treaty by entering into non-competition agreements according to which each member undertaking of one conference refrains from operating as an independent shipping company (outsider) in the area of activity of the other two conferences in order to share out the liner market between northern Europe and western Africa on a geographical basis.
Article 2
In order to eliminate the principal independent competitor in the trade in question, the undertakings that are members of Cewal have abused their joint dominant position by:
- participating in the implementation of the cooperation agreement with Ogefrem and by [requesting] repeatedly by a variety of means that it be strictly complied with,
- modifying its freight rates by departing from the tariff in force in order to offer rates the same as or less than those of the principal independent competitor for vessels sailing on the same date or neighbouring dates (practice known as fighting ships), and
- establishing 100% loyalty arrangements (including goods sold fob) which went beyond the terms of Article 5(2) of Regulation (EEC) No 4056/86, accompanied by the use, as described in this decision, of blacklists of disloyal shippers.
Article 3
The undertakings concerned by this decision are hereby required to bring to an end the infringement referred to in Article 1.
The member undertakings of Cewal are also required to bring to an end the infringements referred to in Article 2.
Article 4
The undertakings concerned by this decision are hereby required to refrain in future from any agreement or concerted practice which may have the same or similar object or effect as the agreements and practices referred to in Article 1.
Article 5
It is recommended that the members of Cewal amend the terms of their loyalty contracts so that they conform with Article 5(2) of Regulation (EEC) No 4056/86.
Article 6
Fines are hereby imposed on the member undertakings of Cewal by reason of the infringements referred to in Article 2, with the exception of the following shipping companies: Angonave, Portline, Compagnie Maritime Zaïroise (CMZ) and Scandinavian West Africa Lines (SWAL).
The fines are as follows:
- Compagnie Maritime Belge: ECU 9.6 million,
- Dafra Line: ECU 200 000,
- Nedlloyd Lijnen BV: ECU 100 000,
- Deutsche Afrika Linien-Woermann Linie: ECU 200 000.
Article 7
The fines imposed in Article 6 shall be paid in ecu within three months of the date of notification of this decision to the account of the Commission of the European Communities No 310-0933000-43, Banque Bruxelles-Lambert, Agence Européenne, Rond-Point Robert Schuman 5, B-1040 Bruxelles.
On expiry of that period interest shall automatically be payable at the rate charged by the European Monetary Cooperation Fund on its ecu operations on the first working day of the month in which this decision was adopted, plus 3.5 percentage points, i.e. 13.25%.
Article 8
[This decision is addressed to the Cewal, Cowac and Ukwal shipping conferences and the undertakings that are members thereof, a list of which is attached as Annex I to this decision.]
...
- in Case T-26/93, the applicant asserted a plea alleging procedural defects;
- in Cases T-24/93, T-25/93 and T-28/93, the applicants maintained that the practices in question did not affect intra-Community trade and, in Cases T-24/93 and T-25/93, that the markets in question were not part of the common market;
- in Cases T-24/93 to T-26/93, the applicants denied that the practices at issue had as their object or effect the distortion of competition within the meaning of Article 85(1) of the EEC Treaty (now Article 81(1) EC);
- in each of those cases, the applicants maintained that the practices in question did not constitute an abuse of a dominant position within the meaning of Article 86 of the EEC Treaty (now Article 82 EC).
- they deny the collective dominant position which Cewal members are presumed to hold;
- they dispute each of the three findings of the Court of First Instance as to abuse of a dominant position, concerning respectively the agreement with the [Zairean] Office de Gestion du Fret Maritime ('Ogefrem), 'fighting ships and loyalty contracts;
- they object to the fines imposed.
The plea relating to the existence of a collective dominant position
Arguments of the appellants
Findings of the Court
The first ground of appeal: the Court of First Instance based its reasoning on grounds not included in the contested decision
The grounds of appeal concerning the alleged 'recycling of concerted practices, the possibility of concerted practices constituting an abuse of a dominant position and the reasoning of the contested judgment in that regard
The plea relating to the alleged abuse of a dominant position by Cewal
The abuse concerning the cooperation agreement ('the Ogefrem Agreement)
Arguments of the appellants
Findings of the Court
The abuse concerning the practice known as 'fighting ships
Arguments of the appellants
Findings of the Court
The abuse concerning loyalty contracts
Arguments of the appellants
Findings of the Court
The plea relating to the fines
Arguments of the appellants
Findings of the Court
Costs
152. Since the appeal is well founded only in respect of the plea relating to the fines, CMB, CMBT and Dafra must be ordered to bear their own costs, and to pay three quarters of those of the Commission and all those of G & C.
On those grounds,
THE COURT (Fifth Chamber)
hereby:
1. Sets aside the judgment of the Court of First Instance of 8 October 1996 in Joined Cases T-24/93 to T-26/93 and T-28/93 Compagnie Maritime Belge Transports and Others v Commission to the extent that it upheld the fines imposed on Compagnie Maritime Belge Transport SA, Compagnie Maritime Belge SA and Dafra-Lines A/S;
2. Annuls Articles 6 and 7 of Commission Decision 93/82/EEC of 23 December 1992 relating to a proceeding pursuant to Articles 85 (IV/32.448 and IV/32.450: Cewal, Cowac and Ukwal) and 86 (IV/32.448 and IV/32.450: Cewal) of the EEC Treaty as regards Compagnie Maritime Belge Transport SA, Compagnie Maritime Belge SA and Dafra-Lines A/S;
3. Dismisses the remainder of the appeal;
4. Orders Compagnie Maritime Belge Transport SA, Compagnie Maritime Belge SA and Dafra-Lines A/S to bear their own costs, and to pay three quarters of those of the Commission of the European Communities and all those of Grimaldi and Cobelfret.
Edward
Gulmann Jann
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Delivered in open court in Luxembourg on 16 March 2000.
R. Grass D.A.O. Edward
Registrar President of the Fifth Chamber
1: Language of the case: English.