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International Convention Interpretation Law

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International Convention Interpretation Law

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In this case, there was an agreement between shipping lines for a timetabled transport of containers across the Atlantic between the Northern Europe and the United States about the restrictions that were formulated which were prohibiting an agreement between ship owners which was fixing the price on transport services and the transport capacity system. The applicants of the case wanted the court to nullify the terms of the contract as it was infringing on the rights to fair competition. They presented their facts basing on article 85 of the EC treaty by then.
The applicant wanted the annulment of the commission’s decision on (EC) 94-980 which was prohibiting the ship owners from fixing the price on their goods and carriage capacity on the programmer that involved the shipping of the containers across the Atlantic Ocean. For an agreement to be effective between Member States there is a requirement that it should meet the requirement of possible foreseeing of a sufficient degree of probability and should also be in line with the objective factor and the law that it has influence in direct or indirect, influential or perpetual.
An agreement between the Member States was likely to affect the trade that was going on between them and the defendants choice to conduct a contract that was not in favor of the applicant lead to the issue as the defendants fact were that they did not meet the thresh hold that are stated in article 85(1) of the treaty which is now article 81(1)EC. Which states that the decisions that are made in a contract for trade between member state is likely to affect all of the member states? The agreement was also likely to cause changes that affected the applicants negatively as they were to lose their market area and business if it was to be implemented.
Article 85 (1) of the Treaty which is now article 81(1) EC provides that a provision derogating in an exempting regulation must by their nature be strictly interpreted. This applies to the provision that relates to the maritime transport by virtue as its duration is restricted. The possibility of the applicants being able to fix different prices was that they could make it possible to attract different customers into the shipping lines which would be good for their business and the agreement was prohibiting them from doing so. The applicants were basing their facts pursuant to section 173 of the Treaty which is now Article 230 EC. The court reviewed the issue was whether the defendant were misusing their power.
The court held that the commission was not supposed to dictate individuals shipping lines unless the parties agree to it and follow the rule in which in this case the applicants did not. The commission limited themselves by applying article 85(3) of the treaty. The argument of the applicants qualified on the exception that was written under Article 12 of regulation No 4056/86.
The court held that the provisions of an agreement between the shipping lines of the applicant and the defendant were supposed to inform the customers to whom they had concluded contracts with. Failure to do so infringed the treaty’s competition rules. The court concluded that the commission’s decision requiring the applicants to make their customers have a right to renegotiate their agreement was lacking sufficient reasoning for them to make the applicants to follow the contract and amend it with the new rules.
Competition-Agreements, decision and concerned practices-effect on trade between members of states-criteria (EC Treaty, art, 85(1))(now Art.81(1) EC))
Competition-Maritime transport-Regulation No 4056/86-Block exemption-Scope (Council Regulation No 4056/86, Art,3)
Common law –Definitions- Interpretation-Definition taken from international convention-interpretation with regard to the convention
EC, Treaty art.85 (1) now article 81(1) EC: council regulation No 1017/68
Art 11 EC and No 4056/86, Art 11.Oxford University Press Amazon

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