ABSTRACT

The third paragraph of Art 81 allows for an exemption to be granted from the prohibition in Art 81(1). The importance of Art 81(3) stems from the wide interpretation adopted under Art 81(1), as a result of which a large range of common agreements fell within the prohibition and required exemption. Article 9(1) of Reg 17 gave the Commission the sole power to grant exemption under Art 81(3). This gave the Commission extensive and exclusive powers which they used to mould the shape of the competition system in the Community. It also gave them the opportunity to promote other goals, such as market integration, within the competition sphere. The Commission used its power of exemption to influence the way in which agreements which were caught by Art 81(1), but which were beneficial overall, were drafted. This policy worked well for the Commission in the early years, as it allowed them to gather large amounts of information about the way in which agreements operated across the Community. As undertakings became more aware of the provisions, and the Common Market became more integrated, the number of exemptions which were sought increased to such levels that the Commission had difficulty handling the workload.