A description of the facts in the case (1 -2 pages) – who did what?Answer: This case is about Wood pulp producers andtrade associations who are defendant in this case, European commission who is plaintiff.Who did What : Here, European commission charged more than 40 wood pulpproducers against infringing the Article 85(1) of Treaty of Rome. Article 85(1)state that fixing price of selling products in the common market should bestopped. Thus EC fined the most of untied states, Finland, Sweden and Canadianwood pulp producers in its final decision. But all wood pulp producers denied paying the fine andappealing to European court of justice to annul the penalty.
They alsorequested to bring some amendments in Article 85(1) .On the other hand, ECclaimed that action was taken those producers who produce bleached sulphatepulp(used for manufacturing the fine quality paper) has breached the Competition Law and International Law.According the European Commission, The main procedure that should be followedto fix the price is that producer gives the guarantee in the contract .The producerwill not exceed the price announced in the beginning of each quarter for thewhole quarter year. But producers announced the price in advance for comingquarter year. This action was totally against the treaty of Rome Law.
Hence,European Commission alleged the wood pulp producers for fixing the price,infringing the laws, for exchanging the information in the European Court. Sothe both parties claimed in the Court against each other. Factabout nature of market: The main reason of European commission decision wasthe nature of market. Wood pulp’s market is in oligopoly nature where there islimited number of wood pulp’s producers and they have further limited number ofbuyers. It is very mandatory to regulate such market very carefully. Pulp isused to produce the paper, paper manufacturers are the main buyers in themarket.
So, all buyers can get the wood pulp according to their need and alsoon time. This is why EC took very strict action against the all wood pulp’s producersand fined them .So as they could follow the rules of Law in future. Legislationensures the security to both buyers and producers against any futureuncertainties in the market.