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Competition and trade law: Commission clears co-operation between photographic manufacturers - the Advanced Photographic System

United Kingdom
15/05/1998
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The European Commission has authorised under competition rules the co-operation by five partner companies in the photographic sector to develop the advanced photographic system (APS). The new cartridge system is designed amongst other things to interface with computer equipment. Its features are such that the parties expect APS in the long term to substantially replace the existing photographic system and to set a new industry standard.

The Commission found that the need for co-operation was justified by the difficulties in developing the APS. However, it also imposed a number of requirements to ensure full competition which the parties have duly complied with. In particular, the parties agreed to Commission requests to ensure a transparent and fair licensing system and the provision of technical assistance by the parties to potential licensees. The co-operating parties agreed to change their notified agreements by granting licences to third parties two years before the date of the introduction of APS and well before the end of its development. The Commission has ensured that third parties were able to market the licensed products in time to compete effectively with the five notifying parties. In the course of proceedings, the Commission also arranged for the licensees to receive technical know-how and help on a larger scale than initially envisaged. On this basis, the Commission has authorised the co-operation (IP/98/346).

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