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Court of Justice of the European Communities (including Court of First Instance Decisions) |
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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> IECC v Commission (Competition) [2001] EUECJ C-450/98P (17 May 2001) URL: http://www.bailii.org/eu/cases/EUECJ/2001/C45098P.html Cite as: [2001] EUECJ C-450/98P |
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JUDGMENT OF THE COURT
17 May 2001 (1)
(Appeal - Decisions rejecting complaints - Abuse of a dominant position - Postal services - Remail)
In Case C-450/98 P,
International Express Carriers Conference (IECC), established in Geneva (Switzerland), represented by E. Morgan de Rivery, J. Derenne and M. Cunningham, avocats, with an address for service in Luxembourg,
appellant,
APPEAL against the judgment of the Court of First Instance of the European Communities (Third Chamber, Extended Composition) of 16 September 1998 in Joined Cases T-133/95 and T-204/95 IECC v Commission [1998] ECR II-3645, seeking to have that judgment set aside in so far as it relates to Case T-204/95 and paragraphs 78 to 83 of Case T-133/95,
the other parties to the proceedings being:
Commission of the European Communities, represented by K. Wiedner, acting as Agent, and N. Forwood QC, with an address for service in Luxembourg,
defendant at first instance,
Deutsche Post AG, represented by D. Schroeder, Rechtsanwalt, with an address for service in Luxembourg,
United Kingdom of Great Britain and Northern Ireland,
The Post Office
and
La Poste,
interveners at first instance,
THE COURT,
composed of: G.C. Rodríguez Iglesias, President, A. La Pergola and M. Wathelet (Presidents of Chambers), J.-P. Puissochet, P. Jann, L. Sevón, N. Colneric, S. von Bahr and C.W.A. Timmermans (Rapporteur), Judges,
Advocate General: D. Ruiz-Jarabo Colomer,
Registrar: H. von Holstein, Deputy Registrar,
having regard to the Report for the Hearing,
after hearing oral argument from the International Express Carriers Conference (IECC), represented by E. Morgan de Rivery, J. Derenne and M. Cunningham, from the Commission, represented by K. Wiedner and C. Quigley, Barrister, and from Deutsche Post AG, represented by D. Schroeder, at the hearing on 14 November 2000,
after hearing the Opinion of the Advocate General at the sitting on 11 January 2001,
gives the following
Facts of the case
'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.
Proceedings before the Commission and the contested decisions
'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 forsubsequent 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 United Kingdom 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. ... 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. Theincident was subsequently referred to in the Statement of Objections ...: 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. ...
20. The Commission is not aware of any other instances of the French Post Office invoking Article 23 of the UPU Convention to intercept mail, neither after the incident referred to by TNT in its letter of 10 October 1989, nor following the issue of the Statement of Objections in 1993. As noted above, the Commission is not under any obligation to adopt a formal prohibition decision regarding an incident of anti-competitive behaviour in the past, but it may decide whether it may be appropriate to do so in the specific circumstances of the case. Given that the interception of mail by the French Post Office referred to above appears to have been an isolated incident, the Commission does not believe that there are grounds for taking further action.
Proceedings before the Court of First Instance and the contested judgment
The appeal
- set aside the contested judgment is so far as it concerns Case T-204/95 and paragraphs 78 to 83 of Case T-133/95;
- itself give judgment in Case T-133/95, pursuant to Article 54 of the EC Statute of the Court of Justice, and annul the first contested judgment in so far as it declares that the IECC has no legitimate interest in non-physical ABA remail and rejects the complaint relating to ABC remail without stating the reasons for doing so;
- itself give judgment in Case T-204/95, pursuant to Article 54 of the EC Statute of the Court of Justice, and declare non-existent or, in the alternative, annul the second contested decision;
- order Deutsche Post to bear the costs of its intervention before the Court of First Instance and also those incurred by the IECC in connection with the reply to Deutsche Post's statement in response before the Court of Justice;
- order the Commission to bear the costs relating to Case T-204/95 and those relating to Case T-133/95, in the event that the contested judgment should be set aside in part, and also the costs of the present proceedings;
- order the interveners before the Court of First Instance to bear the costs borne by the IECC before the Court of First Instance in connection with their intervention in those proceedings;
- in the alternative, in the event that it should not itself give judgment in the case, reserve the decision as to costs and refer the case back to the Court of First Instance.
First plea in law
Second plea in law
Third plea in law
Fourth plea in law
First limb
Second limb
Third limb
Fifth plea in law
Sixth plea in law
Seventh plea in law
Costs
88. Under Article 69(2) of the Rules of Procedure, which applies to the appeal procedure by virtue of Article 118, 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 and Deutsche Post have requested that the IECC be ordered to pay the costs and the IECC has been unsuccessful, it must be ordered to pay the costs.
On those grounds,
THE COURT,
hereby:
1. Dismisses the appeal;
2. Orders International Express Carriers Conference (IECC) to pay the costs.
Rodríguez Iglesias La Pergola Wathelet
Puissochet Jann Sevón
Colneric von Bahr Timmermans
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Delivered in open court in Luxembourg on 17 May 2001.
R. Grass G.C. Rodríguez Iglesias
Registrar President
1: Language of the case: English.