Case law of the community courts
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Case Law of the Community Courts Leading Judgments ls' August 2003 to 31 ~ October 2003 Editor: Richard Crowe, LL.M, Barrister Contributors: Laviero Buono, M.A.; Richard Crowe, LL.M, Barrister; Juliano Franco, Advogado; Ass. jur Jens Hamer, MaTtre en droit; Florence HartmannVareilles, Avocate; Sarah Jund, LL.M; Dr. Marfa Pilar Ntifiez Ruiz; Antonio Perez van Kappel, Mag. iur, Abogado Agriculture R. v The Competition Commission, ex parte Milk Marque Ltd (Case C-137/00) Court of Justice: 9 September 2003 Common agricultural policy - Articles 32 EC to 38 EC - Common organisation of the market in milk and milk products - Whether Member States may apply national competition rules to milk producers who choose to organise themselves into cooperatives and hold market power In early 1998, the UK Competition Commission carried out an investigation into whether a monopoly situation existed in relation to the supply of raw cow's milk in Great Britain. The result of this investigation was a finding that the Milk Marque coop was in a scale monopoly situation as defined by section 6(1)(a) of the Fair Trading Act, 1973. The powerful position held by Milk Marque was found to have contributed to milk being supplied in Great Britain at a higher price than the level it would have reached under more competitive conditions. Milk Marque was also found to have exercised its market power to exploit or maintain the scale monopoly situation in its favour and the practices and conduct of Milk Marque were found to operate against the public interest. On the basis of these findings, the Competition Commission made several recommendations, including a restructuring of Milk Marque, which were adopted by the Secretary of State in a series of decisions in 1999. Milk Marque brought an action before the High Court in London contesting the Competition Commission's report and the subsequent decisions adopted by the Secretary of State. In particular, Milk Marque argued that the Competition Commission and the Secretary of State had acted contrary to Community law in asserting jurisdiction over its members and in recommending and taking steps pursuant to the Fair Trading Act to prevent them from obtaining a higher price for the milk they produced. In order to reach a decision on the merits of Milk Marque's application, the High Court considered it necessary to seek a preliminary ruling to determine, inter alia, whether the national competition authorities of a Member State have any jurisdiction to intervene in the common organisation of the market in milk and milk products and, if so, whether there are any legal constraints on the exercise of such jurisdiction. 114
As regards the question whether the Member States are in principle competent to take steps under their national competition law in the sector governed by the common
,:J Case Law of the Community Courts
organisation of the market in milk and milk products, the Court observed at the outset that the maintenance of effective competition on the market for agricultural products is one of the obje
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