11. 4. 84 Official Journal of the European Communities No L 99/29 COMMISSION DECISION of 30 March 1984 relating to a proceeding under Article 85 of the EEC Treaty (IV/30.804 — Nuovo CEGAM) (Only the Italian text is authentic) (84/191/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the EEC Treaty ('), as last amended by the Act of Accession of Greece, and in particular Articles 4, 6 and 8 thereof, Having regard to the notification submitted on 22 June 1983 by the Association Nuovo Consorzio Centrale Guasti alle Macchine (Nuovo CEGAM), Milan, in accordance with Article 4 of Regulation No 17, seeking a declaration under Article 85 (3) of the Treaty that the basic instruments of the Association are exempt from the provisions of Article 85 (1), Having regard to the summary of the application published in accordance with Article 19 (3) of Regula- tion No 17 (3, After consultation with the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas : I. THE FACTS A. Procedure (1) The proceeding in this case was initiated as a result of an investigation. into the insurance industry under Article 85 of the EEC Treaty which the Commission had begun on its own initiative. On 16 February 1983 the Commis- sion sent a statement of objections to the Italian association of engineering insurers Nuovo Consorzio Centrale Guasti alle () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No C 281, 18. 10. 1983, p. 3. Macchine (New Central Engineering Insurers’ Association) (‘Nuovo CEGAM’), in which it informed the Association’s representatives that there was a prima-facie case against it which could result in adoption of a decision under Article 3 (1) of Regulation No 17. The object of the foundation of the Association and the effect of its activities appeared to be to restrict or distort competition within the common market for the class of insurance concerned. The state- ment of objections said the Agreement had anti-competitive effects at three levels: At the direct insurance level, the Agreement meant that a large number of insurance compa- nies, which otherwise would have been in competition with one another, had virtually ceased to compete on premiums and contract corditions, thereby reducing the variety of ‘insurance services offered to the consumer. At the coinsurance level, while in the absence of an agreement, the choice of coinsurance would have been @n open one, the Agreement restricted members’ choice of coinsurers since they were obliged to choose other members of the Association for this purpose. In reinsurance, the anti-competitive effect of the Agreement was twofold : first, it restricted members’ choice of reinsurers; secondly, it restricted the reinsurer’s freedom to set his own premium rates and contract conditions, both in his business with members of the Association and in his business transacted within Italy with non-members. The Agreement was also liable to affect trade between the Member States in that the rules of the Association : — were applicable to risks situated abroad as well as on Italian territory, — affected the coinsurance operations of insu- rance companies outside Italy,