5 . ii . 97 Ien Official Journal of the European Communities L 301 /27 COMMISSION DECISION of 21 October 1997 relating to a proceeding pursuant to Article 90 (3) of the EC Treaty regarding the tariffs for piloting in the Port of Genoa (Only the Italian text is authentic) (Text with EEA relevance) (97/745/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, ferent tariffs to maritime transport undertakings, depending on whether they operate transport Having regard to the Treaty establishing the European services between Member States or between ports Community, and in particular Article 90 (3) thereof, situated on national territory, in so far as trade between Member States is affected'. Having regard to the complaint lodged by Tourship on 21 June 1994 concerning the system of reductions in On 26 May 1994, Tourship (formerly Corsica piloting tariffs in the port of Genoa, withdrawn on 8 July Ferries) applied to the Corporation of Pilots of the 1997, Port of Genoa for the reductions granted to vessels engaged in cabotage, pursuant to the abovemen­ Having given the Italian authorities, the Corpo dei Piloti tioned judgment. On 1 June 1994, the Corporation del Porto di Genova (Corporation of Pilots of the Port of informed Tourship that it was obliged to apply the Genoa), Tirrenia, Viamare di Navigazione, Navarma tariffs laid down by the Ministry for the Merchant and Tourship the opportunity to make known their views Navy. The Ministry not having issued new tariffs at on the objections raised by the Commission concerning that time , the Corporation had been compelled to the system of reductions in piloting tarifs in the port of apply the tariffs objected to by the Court . Genoa, Whereas : On 21 June 1994, Tourship complained to the Commission concerning the system of reductions in piloting tariffs in the port of Genoa, a system which had been the subject of the abovementioned Court ruling. THE FACTS On 5 October 1994 a new tariff was published in Circular No 5203904. Pursuant to Article 91 of the Navigation Code, piloting tariffs are approved by This procedure concerns the system of reductions the Minister for the Merchant Navy after seeking in piloting tariffs in the port of Genoa . the opinions of the trade union associations concerned . The tariffs are put into effect in each port by decree of the competent maritime autho­ rity. In the port of Genoa, the abovementioned The State measure concerned circular was put into effect by Decree 17/94 of 12 October 1994 of the maritime authority. ( 1 ) Following several references for peliminary rulings from the Court of Genoa in connection with a dispute between Corsica Ferries and the Corpora­ Article 1 of the Decree in question fixes the basic tion of Pilots, on 17 May 1994, the Court of Justice rate calculated on the basis of the gross registered delivered a judgement in Case C- 18/93 Corsica tonnage of a vessel . Ferries ('), on piloting tariffs in the port of Genoa . It held that 'Article 90 ( 1 ) and Article 86 of the Treaty prohibit a national authority from inducing Article 4 lays down the tariff increases for services an undertaking which has been granted the exclu­ supplied outside normal working hours and days sive right of providing compulsory piloting services which range from 40 % to 50 % of the basic tariff. in a substantial part of the common market, by approving the tariffs adopted by it, to apply dif­ Article 10 provides for a system of reductions on (') [ 1994] ECR 1-1783 . the following piloting tariffs : L 301 /28 EN Official Journal of the European Communities 5 . 11 . 97 — a reduction of 65 % of the basic piloting tariff — from 1 to 3 calls : 100 % of the basic tariff, is granted to shipping companies operating — from 4 to 10 calls : 95 % of the basic tariff, passenger vessels which carry out regular sche­ duled services according to a fixed route and — from 11 to 20 calls : 85 % of the basic ariff, make at least three port calls a day, — over 20 calls : 80 % of the basic tariff. — a reduction of 50 % of the basic piloting tariff is granted to shipping companies operating passenger vessels which carry out regular sche­ duled services according to a fixed rate and The firms and services concerned make at least four port calls a week, (2) The Corporation of Pilots of the Port of Genoa — shipping companies wich make the following (Corpo dei Piloti del Porto di Genova) is a trade number of calls in a quarter benefit from the association comprising the 21 pilots working in following tariffs : that port. Through its members, it is engaged in an economic activity, namely, the supply of piloting — from 1 to 3 calls : 100 % of the basic tariff, services. It has received from the public authorities — from 4 to 1 0 calls : 95 % of the basic tariff, the exclusive right to provide compulsory piloting services in the port of Genoa . — from 11 to 20 calls : 85 % of the basic tariff, — over 20 calls : 80 % of the basic tariff. (3) Tourship Italia (formerly Corsica Ferries) is a ship­ ping company governed by Italian law operating regular scheduled services between Genoa and A 'call' for the purposes of the circular means one Corsica with two ferries . Since June 1997 Tourship entry and one exit from the port . has also operated a high-speed link . It has a concession for a quay within the port of Genoa . On 4 September 1996 a new tariff was published in Circular No 5203359 . It was put into effect at the (4) Tirrenia di Navigazione is 99 % controlled by port of Genoa by Decree 19/96 of 9 September Societa Finanziaria Marittima Finmare, which is in 1996 of the maritime authority. turn controlled by IRI (a public holding company). It chiefly operates ferry and cargo services to Sicily and Sardinia. Article 1 of the Decree fixes the basic tariff calcu­ lated on the basis of gross registered tonnes . There are three types of basic tariff: oil tankers with or Viamare di Navigazione (taken over on 18 without segregated ballast, and other vessels . Article December 1996 by Italia di Navigazione) is 99 % 1 (2) establishes the tariffs for vessels of up to 2 000 controlled by Società Finanziaria Marittima grt that are piloted by radio and for vessels au­ Finmare, which is itself controlled by IRI . Italia di thorized to use radio piloting in order leave Porto Navigazione operates six container vessels. Vecchio under the Ministerial Decree of 2 September 1996 ('). Navarma specializes in the transport of passengers and vehicles on ferries sailing to Elba, Corsica and Article 5 lays down the tariff increases for services Sardinia . provided outside normal working hours and days which range from 40 % to 100 % of the basic tariff . (5) Piloting services in Italian seaports, governed by the Navigation Code (Articles 86 to 100) and the Implementing Regulation (Articles 98 to 137) are Article 10 provides for the following reductions in provided under the authority of the harbour master. piloting tariffs : Although usually optional, piloting services can be made compulsory by decree of the President of the — a reduction of 65 % of the basic piloting tariff Republic . In virtually all Italian ports, piloting has is granted to shipping companies operating become compulsory. In the port of Genoa, a passenger vessels which carry out regular sche­ Decree of the Ministry of Transport and Shipping duled services according to a fixed route and of 30 December 1992 made piloting compulsory . make at least four port calls a week, This was reaffirmed by Ministerial Decree of 2 September 1996 . — shipping companies which make the following number of calls in a quarter benefit from the That Decree of the Ministry of Transport and Ship­ following tariffs : ping provided for the possibility of recourse, under certain conditions, to piloting services by radio on (') See recital 5 for a description of the Decree . departure from Porto Vecchio. 5. 11 . 97 EN Official Journal of the European Communities L 301 /29 Pursuant to Article 86 of the Navigation Code a Furthermore, the maritime links within the corporation of pilots having legal personality is to Community make up a neighbouring, but separate, be set up by decree of the President of the Re­ market which is affected by the behaviour of the public in ports and other places for the access or corporation of Pilots on the piloting-services passage of vessels where there is a recognized need market. for a piloting service . Thus, at a given port, the corporation of pilots and The dominant position the master of a vessel representing the shipowner conclude a contract for the provision of services against payment . Under the contract, a pilot, as a (8 ) According to the case-law of the Court of Justice, member of the corporation , assists the master of an undertaking which has a legal monopoly in a the vessel with the necessary manoeuvres to enter, substantial part of the common market may be leave or manoeuvre in the port and the necessary regarded as occupying a dominant position within operations for berthing and unberthing. The the meaning of Article 86 of the Treaty (see the shipowner applies to the corporation , which desig­ judgments, of 23 April 1991 , 18 June 1991 and 10 nates a pilot to provide the appropriate services . December 1991 respectively, in Cases C-41 /90 Hofner (2), C-260/89 ERT (3); and C- 179/90 Port of Genoa (4). LEGAL ASSESSMENT The Corporation of Pilots of the Port of Genoa is an undertaking within the meaning of Article 90 Article 90 ( 1 ) ( 1 ) of the EC Treaty which, by virtue of the exclu­ sive right granted pursuant to Article 96 of the ( 6) Article 90 ( 1 ) provides that, in the case of public Code of Navigation , holds a dominant position on undertakings and undertakings to which Member the market for piloting services in the port of States grant special or exclusive right, Member Genoa .