12.9.98 Official Journal of the European Communities L 252/47 COMMISSION COMMISSION DECISION of 17 June 1998 relating to a proceeding pursuant to Article 86 of the EC Treaty (IV/36.010-F3 — Amministrazione Autonoma dei Monopoli di Stato) (notified under document number C(1998) 1437) (Only the Italian text is authentic) (Text with EEA relevance) (98/538/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation No 17 of 6 February 1962, first Regulation implementing Articles 85 and 86 of the Treaty ('), as last amended by the Act of Accession of Austria, Finland and Sweden, and in particular Articles 3(1) and 15(2) thereof, Having regard to the applications submitted pursuant to Atrticle 3 of Regulation No 17 by R. J. Reynolds Tobacco GmbH and R. J. Reynolds Tobacco Company SAE, Roth- mans International BV and International Tobacco Company for a finding that Amministrazione Autonoma dei Monopoli di Stato has infringed Article 86 of the EC Treaty, Having regard to the Commission decision of 27 February 1997 to initiate proceedings in this case, Having given the firm concerned the opportunity to make known its views on the objections raised by the Commission in accordance with Article 19(1) of Regula- tion No 17 and with Commission Regulation (EEC) No 99/63 of 25 July 1963 on the hearings provided for in Article 19(1) and (2) of Regulation No 17 (3, () OJ 13, 21. 2. 1962, p. 204/62. () OJ 127, 20. 8. 1963, p. 2268/63. After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: PART 1 THE FACTS I. AAMS (1)  Amministrazione Autonoma dei Monopoli di Stato (hereinafter referred to as ‘AAMS) is a body forming part of the financial administration of the Italian State which, in addition to carrying out various administrative activities, also engages in the production, import, export and wholesale distribu- tion of manufactured tobaccos. (20  Article 45 of Law No 907 of 17 July 1942 (°) gives AAMS the exclusive right to produce manufactured tobacco on national territory. AAMS currently exercises that right through 21 production plants employing some 7 500 persons. In those plants, AAMS produces not only the cigar- ette brands it owns but also brands owned by Philip Morris. To that end, it has over several decades concluded licensing agreements with Philip Morris () Law on the salt and tobacco monopoly, GURI (Gazzetta Offi- ciale della Repubblica Italiana) No 199, 28. 5. 1942.