31.12.85 Official Journal of the European Communities NoL376/15 COMMISSION DECISION of 16 December 1985 relating to a proceeding pursuant to Article 85 of the EEC Treaty (IV/30.665 — Villeroy & Boch) (Only the French and German texts are authentic) (85/616/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the European Economic Community, and in particular Article 85 thereof, 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 Greece, and in particular Article 2 thereof, Having regard to the application made on 25 May 1982 by Villeroy & Boch KG, Mettlach, Germany, and Villeroy & Boch Sarl, Luxembourg, for negative clearance of a network of standard form agreements for the distribution of ceramic tableware and ornaments, Having regard to the summary of the application published (*) in accordance with Article 19 (3) of Regu- lation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, I. THE FACTS A. The undertakings 1. Villeroy & Boch KG of Mettlach, Germany, and Villeroy & Boch Sarl of Luxembourg, belong to the group of the same name, which is a major producer of ceramics (sanitary and fine ceramics). The Villeroy & Boch group has a consolidated annual twrnover of ...(%), all operations combined, of which ... in respect of fine cera- mics (ceramic tableware and ornaments), (") OJ No 13, 21. 2. 1962, p. 204/62. (*) O] No C 206, 16. 8. 1985, p. 6. (*) Pursuant to Article 21 (2) of Regulation No 17, business secrets are not published in the Official Journal of the European Communities. which Villeroy & Boch markets in the Member States of the EEC and EFTA by means of a distri- bution network. B. The product and the market Villeroy & Boch is a large European producer of ceramic tableware and ornaments. Its production is sold mainly in Germany, the Benelux countries and France. The Villeroy & Boch network distributes 61 dinner services, of which the most reputed, numbering 21, are covered by a 15-year availability guarantee. Villeroy & Boch’s market share does not attain 10 % in any of the Community Member States, and is below 5 % in several. The market in ceramic tableware and ornaments is a fragmented market in which competition is very strong. On the German market alone, numerous producers are active, of which the three leading ones together account for a third of the sales, the others sharing the remainder of the market on the basis of shares equal to or less than 5 %. Since goods of high quality and limited bulk are involved, imports play an important role and can account for up to a third of annual sales on certain national markets. Each producer is thus exposed to competition from manufacturers established both in other Member States and in non- Community countries, some producers exporting more than a third of their output. C. The network of notified agreements Villeroy & Boch markets its ceramic tableware and ornaments in the common market via a network of some 3 500 specialist retailers who are supplied, depending on the country, either directly by Villeroy & Boch, or through the agency of importers or wholesalers, or both. In addition to this network, there are two specialist distribution channels: the supplying of hotels and restaurants and the distribution of publicity aids.