L 24456 Official Journal of the European Communities 16.9.1999 COMMISSION COMMISSION DECISION of 20 July 1999 on a procedure relating to the application of Council Regulation (EEC) No 2299/89 (Electronic ticketing) (notified under document number C(1999) 2068) (Only the German text is authentic) (Text with EEA relevance) (1999/618/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 2299/89 of 24 July 1989 on the code of conduct for computerised reservation systems ('), as last amended by Regulation (EC) No 323/ 1999 (3, and in particular Article 16(2) thereof, Having given the undertaking concerned the opportunity to make known its views on the objections raised by the Commission, pursuant to Article 19(1) of Regulation (EEC) No 2299/89, Whereas: I. BACKGROUND, FACTS AND PROCEDURE 1. The complaint (1)  In aletter of 9 January 1997, the system vendor SABRE Travel Information Network (SABRE) complained that Deutsche Lufthansa AG (Lufthansa’) is infringing Regula- tion (EEC) No 2299/89 (code of conduct) in that it offers incentives to corporate clients using electronic tickets for domestic travel on Lufthansa flights. This, it alleged, results in corporate clients only dealing with travel agents using the computerised reservation system (CRS) START Amadeus, of which Lufthansa is part owner, since it is the only system that can issue electronic tickets. A copy of the complaint was sent to Lufthansa () O] L 220, 29.7.1989, p. 1. () O] L 40, 13.2.1999, p. 1. on 20 January 1997 requesting it to submit its observa- tions within one month. Lufthansa submitted its obser- vations on 19 February 1997. SABRE complained that Lufthansa had failed to provide SABRE with the necessary information and technical specifications to be able to issue electronic tickets for Lufthansa which severely undermines SABRE's ability to attract and retain subscriber accounts in Germany. SABRE has developed its own electronic ticketing func- tion that operates in accordance with industry standards agreed by all airline members of IATA (International Air Transport Association). SABRE considered that the effect of the above actions by Lufthansa is to prevent effective competition in the German CRS market. After a preliminary assessment of the complaint the Commission issued a Statement of Objections against Lufthansa dated 16 December 1997. Lufthansa replied on 3 March 1998. Lufthansa's principal arguments were that the incentives were intended to encourage consumer and subscriber acceptance of the electronic ticket rather than to prejudice competing CRSs and that a new technological product requires a transition period before it could be offered to all other CRSs. Further- more, the airline made a distinction between a ticket and an air transport product for the purposes of the code, arguing that tickets did not come under the scope of Article 8(1) which prohibits incentives. Lufthansa also raised issues concerning its rights of defence and requested an oral hearing.