«(Common agricultural policy – Articles 32 EC to 38 EC – Regulation (EEC) No 804/68 – Common organisation of the market in milk and milk products – Target price for milk – Regulation No 26 – Application of certain competition rules to the production of and trade in agricultural products – Whether Member States may apply national competition rules to milk producers who choose to organise themselves into cooperatives and hold market power)»

1.. Agriculture – Common organisation of the markets – Milk and milk products – Application of national competition law to a milk producers' cooperative in a powerful position on the national market – Competence of the national authorities – Limits (Arts 32 to 38 EC; Council Regulation No 26 and No 804/68, Art. 3(1), as amended by Regulation No 1587/96)

2.. Agriculture – Common organisation of the markets – Milk and milk products – Target price for milk – Account taken of that price by national competition authorities for the purposes of investigating the market power of an undertaking – Whether permissible (Art. 33(1) EC; Council Regulation No 804/68, Art. 3(1) and (2), as amended by Regulation No 1587/96)

3.. Free movement of goods – Quantitative restrictions – Measures having equivalent effect – Prohibition on a dairy cooperative in a powerful position on the market against entering into contracts for processing milk on its own behalf – Application of national competition law – Whether permissible (Arts 28 and 29 EC)

4.. Community law – Principles – Equal treatment – Discrimination on grounds of nationality – Prohibition on a dairy cooperative in a powerful position on the market against entering into contracts for processing milk on its own behalf – Whether permissible (Arts 12 EC and 34(2), second para., EC)

JUDGMENT OF THE COURT 9 September 2003 (1)

((Common agricultural policy – Articles 32 EC to 38 EC – Regulation (EEC) No 804/68 – Common organisation of the market in milk and milk products – Target price for milk – Regulation No 26 – Application of certain competition rules to the production of and trade in agricultural products – Whether Member States may apply national competition rules to milk producers who choose to organise themselves into cooperatives and hold market power))

In Case C-137/00,

REFERENCE to the Court under Article 234 EC by the High Court of Justice of England and Wales, Queen's Bench Division (Crown Office) for a preliminary ruling in the proceedings pending before that court between

and

on the interpretation of Articles 12, 28 to 30, 32 to 38, 49 and 55 EC, of Council Regulation No 26 of 4 April 1962 applying certain rules of competition to production of and trade in agricultural products (OJ, English Special Edition 1959-1962, p. 129) and of Regulation (EEC) No 804/68 of the Council of 27 June 1968 on the common organisation of the market in milk and milk products (OJ, English Special Edition 1968 (I), p. 176), as amended by Council Regulation (EC) No 1587/96 of 30 July 1996 (OJ 1996 L 206, p. 21),

THE COURT,,

composed of: M. Wathelet, President of the First and Fifth Chambers, acting as President, R. Schintgen and C.W.A. Timmermans (Presidents of Chambers), C. Gulmann, D.A.O. Edward, A. La Pergola, P. Jann, V. Skouris (Rapporteur), F. Macken, N. Colneric, and J.N. Cunha Rodrigues, Judges,

Advocate General: C. Stix-Hackl,

after considering the written observations submitted on behalf of:

having regard to the Report for the Hearing,

after hearing the oral observations of Milk Marque Ltd, represented by K.P.E. Lasok, the National Farmers' Union, represented by S. Isaacs and C. Lewis, the Dairy Industry Federation (DIF), represented by N. Green and M. Lester, Barrister, of the United Kingdom Government represented by G. Amodeo, acting as Agent, assisted by D. Anderson and K. Beal, and of the Commission, represented by P. Oliver and K. Wiedner, at the hearing on 5 February 2002,

after hearing the Opinion of the Advocate General at the sitting on 17 September 2002,

gives the following

.

Observations submitted to the Court

Findings of the Court

Whether the Member States are competent to take steps under their national competition law in the sector governed by the common organisation of the market in milk and milk products

Observations submitted to the Court

Findings of the Court

The limits of the Member States' jurisdiction to act under national competition law in the sector governed by the common organisation of the market in milk and milk products

Observations submitted to the Court

Findings of the Court

Observations submitted to the Court

Findings of the Court

Observations submitted to the Court

Findings of the Court

Observations submitted to the Court

Findings of the Court

On those grounds,

THE COURT,

in answer to the questions referred to it by the High Court of Justice of England and Wales, Queen's Bench Division (Crown Office), by order of 31 March 2000, hereby rules:

Wathelet

Schintgen

Timmermans

Gulmann

Edward

La Pergola

Jann

Skouris

Macken

Colneric

Cunha Rodrigues

Delivered in open court in Luxembourg on 9 September 2003.

R. Grass

G.C. Rodríguez Iglesias

Registrar

President