Bulletin of the EUROPEAN COMMUNITIES

lssN 0378.3693 Bulletin OF THE EUROPEAN COMMUNITIES Commission No 718 1984 Volu m e 17 ,2 The Bulletin of the European communities reports on the activities of the Gommission and the other community institutions. lt is edited by the Secretariat-General of the Commission (rue de la Loi 200, 8-1049 Brussels) and published eleven times a year (one issue covers July and August) in the otficial community languages spanish and Portuguese. Beproduction is authorized provided the source is acknowledged' The following reference system is used: the first digit indicates the part number, the second digit the chapter number and the subsequent digit or digits the point number. citations should therefore read as follows: Bull. EC 1-1 979, point 1 '1.3 or 2.2.36. supplements to the Bultetin are published in a separate series at irrequ- tai intervals. They contain olficiat Commission material (e.9. communica' tions to the Council, programmes, rePotts and prqosals)' The Supple' ments do not aryear in Spnish and Portuguese. Printed in Belgium \ Bulletin \ OF THE EUROPEAN . ECSC_EEC_EAEC Commission of the European Communities Secretariat-General Brussels No7/A press 1984 Sent to in October 1984 Volume 17 contents PART ONE PET$Iff'' 1. Averting the danger of an abuse of a dominant position: The IBM case 2. First meeting of the second elected European Parliament 10 ACTIVITIES PART TWO IN JULY/AUGUST 1984 1. Building the Community 16 - Economic and monetary Policy 16 - lnternal market and industrial affairs 17 - lndustrial innovation and the information market 25 - Customs union 26 - Competition 28 - Financial institutions and taxation 40 - Employment, education and social policy 42 - Culture 45 - Regional policy 45 - Environment and consumers 46 - Agriculture 47 - Fisheries 55 - Transport 58 - Energy 59 - Research and development 60 2. Enlargement and external relations 62 Enlargement and bilateral relations with applicant - countries 62 - Commercial policy 62 - Relations with industrialized countries 66 - Relations with other countries and regions 67 o Asia 68 o Latin America 69 o State-trading countries 69 - Development 70 - lnternational organizations and conferences 75 - Diplomatic relations 76 3. Financing Community activities 77 4. Political and institutional matters 82 - European political cooperation 82 - European policy and relations between the institutions 83 - lnstitutions and organs of the Communities 84 o Parliament 84 o Council 87 o Commission 88 o Court of Justice 89 o Court of Auditors 103 o Economic and Social Committee 103 o European lnvestment Bank 105 PART TH REE D..UMENTATI.N '1. Ecu 110 2. Additional references in the OfficialJournal 111 3. lnfringement procedures 112 4. Statement on the lrish Presidency of the Council 114 5. Text of the Franco-German Agreement on the gradual abol- ition of border checks - 120 Publications of the European Communities Supplements 1 984 1184 Unfair terms in contracts concluded with consumers \ PART @N{ E SPECIAL FEATURES Bulletin information service Readers can obtain information on developments since this issue went to press (date of of instruments by the Council, of opinio-r-rs.givgn by Parliament or the Economic "JoptionanJ'So.ial Commimee, of publication in thi Officiil Journal, etc.) by telephoning the document services of the Infbrmation Offices at the following numbers: London 2228122 Belfast 240708 Cardiff 371631 Edinburgh 225 2058 Dublin 712244 Standardized abbreviations for tho designation ol certain monetary units in the ditlorent languages of the Community: ECU = European curroncy unit BFR : Belgische frank / Franc bolge DKR : Oansk krono DM = Deutsche Mark DR : Greek drachma FF = Franc frangais HFL = Nederlandse gulden (Hollandse florijn) IRL = lrish pound / punl LFR = Franc luxembourgeois LIT = Lira italiana UKL = Pound sterling USO = Uniled States dollar 1. Averting the danger of an abuse of a dominant position: The IBM case 1.1.1. Following a period of inrense nego- . by not offering System/370 CPUs tiations between IBM and a team of senlor without the basic software being included Commission officials, Mr Frans Andriessen, in the price ('software bundling')j the Member of rhe Commission with speciai responsibility for competition policy,-secu- . by discriminating between users of IBM red an undertaking from lBtrrt (lnternational software: IBM refused to supply cerrain Business Machines) that it would chanse its software installation services ('initallation business practices in the Community.-The Productivity Options' : IPOs) ro users of Commission therefore decided to suspend non-lBM CPUs. the proceedings it had initiated againstiBM for infringement of the Communlty competition rules. IBM's reply and the reactions of the Commission and the other manufacturers The proceedings and the points at issue IBM's reply The Commission inquiry 1.1.3. In its written reply to rhe Commis- sion's statement of obiections, IBM denied both that it had a dominant position and 1.1.2. Proceedings were initiated in this that it had committed any of the alleged case, which is one of the most extensive ever abuses. However, IBM had previously-in- handled by the Commission deparrmenrs, ar formed the Commission thaf it had tiken the end of 1980 after investigations into steps to make IPOs available to all users of IBM's behaviour within the common mar- its software, and in its written reply it stated ket. During the investigations, a number of that it was in rhe process of unbundling all competitors had filed complaints with the software. Commission. In the formal staremenr of objections ad- Reactions of the Commission dressed to IBM in December 1980, the Com- and the other manufacturers mission alleged that IBM held a dominant position in the common marker for the sup- 1..1.4. Following ply of key products for its most powerfll a hearing which took place in February 1982, range of compurers, the IBM System/370, thi Commission sent IBM a statement of the remedies prooo- and that, in breach of Article 85 of the EEC sed in the evenr of decision Treaty, IBM had abused this position on a confined^ to four counts: the issues of memory bundling and interface disclosure. IBM then suggestEd that discus- . by failing to supply orher manufacturers sions should take place with Commission in sufficient time with the technical infor- officials with a view ro resolving rhe mamers mation.needed to permir competing prod- still at issue in the case. Informa-i discussions ucts to be used with System/370 ('interface g-ot under way in April 1983, in parallel with information'); the formal proceedings, These-proceedings led to a second hearing,-a in Juni 1983, an'd . by not offering System/37O cenrral pro- to the preparation of preliminary draft cessing units ('CPUs') without a main-mem- decision that was submitted to the Advisory ory capacity being included in the price Committee of Member States' experts in ('memory bundling'); June 1984. Bull. EC 7/8-1984 Changes in the practices of a multinational: The IBM case Towards the end of 1983, some of the maior two specific products, such interfaces being European computer manufacturers had ex- those most likely to reveal product design. pressed concern that IBM's Practice on in- This exception will not, however, exclyde ierface disclosure was also having an ad- competition from suppliers who themselves verse effect on the European market in data- offei both products as a subsystem. communication products (the interconnec- tion and interaction of data-processing systems). Accordingly, the issue of 'Systems Effects and duration Network Architetiure' (SNA) was included of the undertaking in the formal discussions on interface disclosure. 1.1.5. The undertaking will have the effect improving the position of Following a period of protracted negotia- of substantially and competitors on the markets Andriessen had inter- both users tion, and aftLr Mr products in the Community. personally, a solution acceptable to for System/37O vened Interlace information should be available the Commission was finally reached. earlier, and in some cases much earlier. By making a clear statement as to its future conduit, IBM also introduced an element had been missing. Undertaking given by tBM 1 of certainty that As a result, the structure of competition in the common market should be strengthened Details of the undertaking and made more effective. Users will be able to choose between different suppliers 1.1.5. IBM undertook; (i) to offer its earlier. They will also be free to choose System/370 CPUs in the Community either from a wider selection of products because without main memory or with only such other manufacturers will have the incentive capacity as was strictly required for testing; to develop new products in the knowledge (iii to disclose sufficient interface informa- that the eisential interface information will tion to enable competing companies in the bi made available. Community to attich both hardware and software products of their own design to In the increasingly important field of sys- System/37b; and (iii) to disclose adequate tems and network intercommunication, and timely information to comPetitors to IBM's undertaking to disclose adequate and represents a enable them to interconnect their systems or timely information about SNA practice. By networks with IBM's System/37O Network major improvement on Present to aban- Architecture. the same ioken, IBM's undertaking don the practice of bundling substantial For hardware interfaces, information would capacities of main memory will give users be disclosed by IBM within four months of a ihoice and provide competitors with op- the date of announcement of the product portunities which have not existed for many concerned, or once the product became years. IBM is also expected to give its back- senerallv available. whichever was the ing to the OSI (Open Systems Interconnec- Earlier. For software interfaces, the infor- tion) standard for network architecture, mation would be disclosed as soon as the which allows machines based on different interface was reasonably stable, but no later svstems to communicate between them- than when it became generally available.

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