Bhagwant kaur (4302346)
pulp producers (European Commission and
European Court of Justice)
1) A description of the forum and the
applicable dispute resolution process (0.5- 1 page)
Answer: Wood pulp case is against the
wood pulp producer (main 40 wood pulp producers and three main trade
association were involved) for violating the Article 85(1) of treaty of Rome by
fixing the price mutually. This action interfere the competition law of
European community (EC). This case was taken place at European commission and
European court of Justice.
There were many defendant, applicant
and intervener involved:
Plaintiff: commission of
incorporated(USA), The pulp, paper and paperboard Export association of united
states, St Anne-Nackawic pulp and paper company Limited (Canada) .Wester Timber
Limited, Weldwood of Canada limited and many more.
Intervener: United Kingdom
and Northern Ireland.
resolution process: when 40 producers of bleached sulphate
wood pulp were alleged on fixing price and were fined by European Commission on
December 19, 1984. Then they all appealed to European Court of Justice to annul
the decision of European commission. The most of producers who appealed were
from Canada, The United States of America, Sweden and Finland.
Then European Court of Justice reviews
the decision of The European commission and also voids the decision of EC. To
deal with issue on fixing price, the court appointed experts to obtain the
report on parallelism of prices and also analyze what characteristics and
natural operations should be considered for uniform Price structure. As All
wood pulp producers were mutually fixed uniform price to sale the wood pulp in
the international market.
After completion of reports, Court
asked to both European Commission and Applicants parties to submit their
justifications on their own actions.
Followings are the main matters that
were discussed during the Court procedure:
Infringement(breaking law) relating to
fixing the prices
relating to fixing the price against the announced prices
KEA issue was discussed as the members
of KEA were found in fixing prices.
The issue relating to Canadian
applicant St Anne, Wester was charged with selling the wood pulp prohibiting buyers
from exporting and reselling.
EC charged all producers fines, were