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Re Wood Pulp Cartel

European Court of Justice
[1988] E.C.R. 5193


Facts

Foreign wood-pulp producers (defendants) located outside of the European Community (EC) (plaintiff) were charged with violations of Article 85 of the Treaty of Rome, which prohibits agreements and concerted practices that prevent, limit, or interfere with competition among businesses within the European Common Market (ECM). All foreign parties involved were either directly exporting products to the EC or conducting business through branches or subsidiaries within the EC. As a result of the foreign wood-pulp producers' concerted actions, around 60 percent of wood-pulp consumption in the ECM had been affected in terms of the prices charged to customers. The foreign producers disputed any assertion of jurisdiction by the EC over the producers, arguing that the application of the competition laws to their activities violated international law because the only basis for the application was the economic effects within the EC of anti-competition conduct adopted by agreement outside the EC.

Rule of Law

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Issue

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Holding and Reasoning

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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