Although Ortho UK should have been aware that the imposition on customers of a prohibition on exports to other EEC Member States would infringe the competition rules of the EEC Treaty 1 , the Ortho UK company nevertheless substantially stopped supplies to certain chemists in May and June , by totally withholding supplies or by drastically restricting them see letters from Ortho UK to Cilag Alsbach dated 18 May and 11 July The “Preislisten” applied by Cilag Alsbach until 28 February contained a provision prohibiting direct or indirect resale to other countries. These provisions had as their object the restriction of competition within the common market. The activities of the European subsidiaries are limited to serving their respective national markets. Firstly, as abovementioned, Ortho UK had stopped deliveries to certain dealers.
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Therefore, the actions on the part of Ortho UK and Cilag Alsbach which impeded the export of Gravindex pregnancy tests by British dealers to the Grunrig market, restricted competition within the common market to an appreciable degree. The pharmaceuticals price lists issued from up to 27 February included, in the section headed “Wiederverkauf”, the following condition: Need more search options?
See for example the October price list.
At least since 1 January and until Januaryall the firm’s “UK trade price lists” intended for sales to pharmaceutical dealers included, under “terms of trading”, the following condition:. The infringements lasted for considerable periods: The export bans which were embodied in the price lists applied by Ortho UK and Cilag Alsbach for sales of their products to pharmaceutical dealers, formed an essential part of the contracts of sale between each company and its dealers.
The imposition of export bans on trade between Member States must always be regarded as a particularly grave infringement, justifying the imposition of fines reflecting this fact. The grundiig prohibitions imposed on the United Kingdom dealers are the principal infringements taken into account.
In August the 20 test pack was withdrawn from the UK market.
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This Decision shall be enforceable in the manner provided for in Article of the Treaty establishing the European Economic Community. The firm is engaged simply in assembly, packaging and marketing of products obtained from Cilag Schaffhausen. Export prohibitions in the terms of trading for pharmaceutical dealers a Ortho UK On the German market the corresponding market share is about Although Ortho UK should have been aware that the imposition on customers of a prohibition on exports to other EEC Member States would infringe the competition rules of the EEC Treaty 1the Ortho UK company nevertheless substantially stopped supplies to certain chemists in May and Juneby totally withholding supplies or by drastically restricting them see letters from Ortho UK to Cilag Alsbach dated 18 May and 11 July Expand all Collapse all.
The export prohibitions in question do not contribute to the improvement of distribution nor have the other requirements of Article 85 3 been fulfilled. Its turnover in was about DM 15 millions.
Sterling Drug  ECR Ortho UK must grhndig known that such a clause and the abovementioned practices had as their object and effect a restriction of competition ng the common market.
It is established that Cilag Schaffhausen brought the parent company into this affair, not only to inform it, but with the express purpose of finding a solution to – quoting them – “a very unpleasant and important problem”, using the parent company’s authoritative power.
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ggrundig The Commission has therefore thought it appropriate to impose a fine of the sum set out in Article 3. After threatening to 11001 supplies from the chemist in Aprilwhen Gravindex pregnancy tests originating from him continued to appear on the German market, in MayOrtho stopped supplies of the products to certain chemists who, in Ortho Grundg view, were apparently supplying German undertakings.
This shows that the parent company knew of this policy, and approved of it. The pharmaceuticals price lists issued from up to 27 February included, in the section headed “Wiederverkauf”, the following condition:. This is also true for Cilag Schaffhausen, which insisted on the enforcement of the export ban imposed on British dealers in order to protect the market of its subsidiary Cilag Alsbach.
Gravindex belongs to the first sub-type.
The most important supplier, from the point of view of both grundgi and number of products, is the Dutch firm Organon, with five tests in its range and a share of the German market for laboratory pregnancy tests of about Orders from three chemists, placed during May and Junewere held up for six to seven months, although Ortho UK’s stocks were sufficient at the times these orders were placed, and other customers’ orders were dealt with much more quickly.
The claim made by Ortho UK that it is unreasonable to impute to ordinary traders knowledge of the fact that an export prohibition is contrary to Article 85 1 is ggundig. At least since 1 January and until Januaryall the firm’s “UK trade price lists” intended for sales to pharmaceutical dealers included, under “terms of trading”, the following condition: The agreements in question do not qualify for exemption under Article 85 3 because they were not notified to the Commission, and they are not agreements of the kind which, under Article 4 2 of Regulation No 17, do not need to be notified.
Its gruundig are Andreas Mohringer, a chemist, grundi H. The restrictive agreements with the chemists were only the vehicle for this protective policy, which was indeed contrary to the interests of those chemists.
Cilag Alsbach has admitted that after the judgment of the Court of Justice of 20 May in the Centrafarm case 2 it was aware that it was unlawful to hinder parallel imports. As regards the gravity and duration of the infringements, export prohibitions are serious restrictions of competition and contrary to the goal of a single market among the Member States.
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