22.2.85 Official Journal of the European Communities No L 53/1 (Acts whose publication is obligatory) COMMISSION REGULATION (EEC) No 417/85 of 19 December 1984 on the application of Article 85 (3) of the Treaty to categories of specialization agreements THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community Having regard to Council Regulation (EEC) No 2821771 of 20 December 1971 on the application of - Article 85 (3) of the Treaty to categories of agreements, decisions and concerted practices (1), .as last-amended by the Act of Accession -of Greece, and in particular Article 1 thereof, Having published a draft of this Regulation (2), Having consulted the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: | (1) Regulation (EEC) No 2821/71 empowers the Commission to apply Article 85 (3) of the Treaty by Regulation to certain categories of agreements, decisions and concerted practices falling within the scope of Article 85 (1) which relate to specialization, including agreements necessary for achieving it. (2)  Agreements on specialization in present or fu- ture production may fall within the scope of Article 85 (1). (3)  Agreements on specialization in production generally contribute to improving the production (1) O] No L 285, 29. 12. 1971, p. 46. (2) O] No C 211, 11. 8. 1984, p. 2. or distribution of goods, because undertakings concerned can concentrate on the manufacture of certain products and thus operate more efficiently and supply the products more cheaply. It is likely that, given effective competition, consumers will receive a fair share of the resulting benefit. Such advantages can- arise equally' from agreements whereby each participant gives up the manufacture of certain products in favour of  another. participant and from .agreements whereby the -participants undertake to manu- facture certain products or have them manu- factured only jointly. The Regulation must specify what restrictions of competition may be included in specialization agreements. The restrictions of competition that are permitted in the Regulation in addition to reciprocal obligations to give up manufacture are normally essential for the making and implementation of such agreements. These restrictions . are  therefore, in  general, indispensable for the attainment of the desired advantages for the participating undertakings and consumers. It may be left to the parties to decide which of these provisions they include in their agreements. The exemption must be limited to agreements which do not give rise to the possibility of eliminating competition in respect of a substantial part of the products in question. The Regulation must therefore apply only as long as the market share and turnover of the . participating undertakings do not exceed a certain limit.