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GAZE1TE

DECEMBER 1977

COURT OF JUSTICE OF THE EUROPEAN

COMMUNITIES

COMPETITION

Case 59/77—Etablissements A. De Bloos S.p.r.l. v

Bouyer, Société en Commandite par Actions—Reference

for a pre l iminary r u l i ng—14 De c ember

1977—

Competition—Exclusive sales agreement.

The Cour d'Appel (Court of Appeal), Mons, referred

to the Court of Justice for a preliminary ruling a series of

questions on the interpretation of Article 173 (application

for annulment), Article 177 (reference for a preliminary

ruling), Article 85 (3) (competition) and Regulation No.

67/67 (block exemption).

These questions have been raised in the context of a

dispute between the grantee of an exclusive sales

concession (De Bloos) and the grantor undertaking

(Bouyer) concerning dissolution and an order to pay

damages for non-performance of a contract relating to an

exclusive sales concession for power-driven cultivators

and similar vehicles, in particular for Belgium and the

Grand Duchy of Luxembourg, a dispute in which the

grantor undertaking alleges in its defence that the contract

in question is void because it is incompatible with Article

85 of the Treaty.

Bouyer contests the classification of this contract made

by the Commission in its letter of 29 April 1969,

according to which that contract is an exclusive dealing

agreement which could be granted block exemption

within the meaning of Regulation No. 67/67.

The fourth question referred by the national court,

which envisages the possibility that the Commission made

a mistake in 1969 in considering that the agreement in

question could be granted block exemption, asks whether

such an agreement may be recognized as provisionally

valid because it has been notified and what the effects of

such validity are.

The Court, in reliance upon its previous case-law (Case

48/72, Brasserie de Haecht v. Wflkin-Janssen [1973]

ECR 77 and Case 10/69, Portelange v. Marchant [ 1969]

ECR 309) found that although the fact that such

agreements are fully valid may possibly give rise to

practical disadvantages, the difficulties which might arise

from uncertainty in legal relationships based on the

agreements notified or exempted from notification would

be still more harmful.

Old agreements may not only benefit from exemption

retroactive even to the period before their notification but

in addition those provisions thereof which were

incompatible with Article 85 (1) and could not benefit

from Article 85 (3) may be regularized retroactively from

the date on which they are amended for the future at the

Commission's request. Such a system cannot be

reconciled with a power for the courts to find that an

agreement is void during the period from notification

thereof to the date on which the Commission takes a

decision.

The Court accordingly held that during the period from

notification to the date on which the Commission takes a

decision, the courts before which a dispute is brought

relating to an old agreement duly notified or exempted

from notification must give such an agreement the legal

effects attributed thereto under the law applicable to the

contract and that those effects may not be called in

question by any objection which may be raised concerning

its compatibility with Article 85 (1).

The first two questions referred essentially to

proceedings contesting, by recourse to Article 177 of the

198

Treaty, the validity of a decision by a Community

institution addressed to an individual, the legality of

which decision is contested by a party which is out of time

as regards an application for annulment under Article

173.

As it follows from the answer given to the fourth

question that an old agreement duly notified or exempted

from notification, even if it was wrongly considered by the

Commission as benefitting from a block exemption within

the meaning of Regulation No. 67/67 and as therefore not

needing to be subject to an individual decision of

exemption, continues to be valid until the date on which

the Commission has taken a decision on the basis of

Article 85 and Regulation No. 17, it follows that the fact

that such an agreement is in accordance with Article 85

may not be called in question before the national courts

during this period, and that the first two questions do not

require a reply.

As for the third question concerning the effects of

Regulation No. 67/67 after 31 December 1972, it has

also become purposeless.

Louis Edmond Pettiti

The election of Louis Pettiti as Batonnier (President) of the

Ordre des Avocats of the Paris Bar has particularly

delighted the Irish Section of the International Lawyers

of Pax Romana.

Me Louis Pettiti has held a leading role in international

organisations, which has benefitted the prestige of the

French Bar as well as European Bars. As President of the

International Movement of Catholic Jurists (Pax

Romana), he has been one of the most ardent defenders of

the Rights of Man during his various observer missions.

In that capacity he was Chairman of the Congresses held

in Dublin in 1963 and in 1976. He has also directed or

taken part in Pax Romana Congresses in Latin America,

Africa (Senegal), and Asia (India, Ceylon and Thailand),

where the themes have concerned Fundamental Rights.

As Secretary-General of both the Association of

European Jurists and of the International Federation for

European Law (first period), he was one of the pioneers of

instruction in Community Law. Me Pettiti is also a

member of the Union Internationale des Avocats since

1950.

Me Pettiti is well known to the Irish delegation to the

Commission Consultative des Barreaux de la

Communaute Europeenne where, as a member of the

French delegation, he has submitted many reports and

drafts relating to the provision of services and

establishment of lawyers in the European Community.

Me Pettiti became a member of the Council of the

Ordre des Avocats of the Paris Bar in 1967. He was

elected Vice-President of the Criminal Law Court Section

of the Paris Bar and was Deputy Batonnier of the Paris Bar

during 1977.

President Pettiti delivered a magnificent address on

Human Rights before a selective representative gathering

of French and European Lawyers in the Palais de Justice,

Paris, on the occasion of his inauguration as President

(Batonnier) on 28 January, 1978, for which he was

applauded for more than three minutes. It is hoped to

publish an English translation of the text of this address in

the March, 1978,

Gazette.

C.G.D.