Volkswagen AG v Commission of the European Communities. (Competition) [2000] EUECJ T-62/98 (6 July 2000)

Volkswagen AG v Commission of the European Communities. (Competition) [2000] EUECJ T-62/98 (6 July 2000)

The Court found that Volkswagen AG, through its subsidiaries Audi and Autogerma, implemented measures—including a 15% bonus rule and supply quotas—intended to restrict re-exports of vehicles from Italy to other Member States, thereby partitioning the market in breach of Article 85(1) EC Treaty. These measures were not exempt under the relevant Commission regulations. However, the Court found insufficient evidence that a split margin system was actually implemented as an agreement or concerted practice. The fine imposed was justified given the seriousness and duration of the infringement.

Citation
[2000] EUECJ T-62/98
Parties
Applicant: Volkswagen AG; Defendant: European Commission
Jurisdiction
European Union
Judgment Date
06 July 2000
Procedural Posture
Action for Annulment / Judgment at First Instance
Outcome
Application dismissed in main part; partial annulment regarding split margin system; fine upheld.
Legal Topics
Selective Distribution, Market Partitioning, Parallel Imports, Article 85 EC Treaty, Commission Regulation No 123/85, Commission Regulation No 1475/95, Fines for Competition Infringement
Competition Law European Union Law Selective Distribution Market Partitioning Parallel Imports Article 85 EC Treaty Commission Regulation No 123/85 Commission Regulation No 1475/95 +1 more

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Parties

Volkswagen AG

Applicant

European Commission

Defendant

Procedural Posture

Action for Annulment / Judgment at First Instance

Legal Issues

  1. 1 Whether Volkswagen AG and its subsidiaries infringed Article 85(1) EC Treaty by agreements restricting sales to final consumers and dealers in other Member States
  2. 2 Whether the measures taken were exempted under Commission Regulations No 123/85 and 1475/95
  3. 3 Whether the fine imposed was justified and proportionate

Ratio Decidendi

The Court found that Volkswagen AG, through its subsidiaries Audi and Autogerma, implemented measures—including a 15% bonus rule and supply quotas—intended to restrict re-exports of vehicles from Italy to other Member States, thereby partitioning the market in breach of Article 85(1) EC Treaty. These measures were not exempt under the relevant Commission regulations. However, the Court found insufficient evidence that a split margin system was actually implemented as an agreement or concerted practice. The fine imposed was justified given the seriousness and duration of the infringement.

Court Disposition

Application dismissed in main part; partial annulment regarding split margin system; fine upheld.

Orders

  • The application is dismissed except as regards the finding of a split margin system, which is annulled.
  • Volkswagen AG is ordered to pay the costs.