10. 11. 88 Official Journal of the European Communities No L 305/33 II (Acts whose publicaiion is not obligatory) COMMISSION COMMISSION DECISION of 11 October 1988 relating to a proceeding pursuant to Article 85 of the EEC Treaty (Case No IV/32.173 — Continental/Michelin) (Only the French and German texts are authentic) ' (88/555/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, : Having regard to Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the EEC Treaty ('), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 2, 4, 6 and 8 thereof, ’ Having regard to the application for negative clearance or exemption, filed on 27 October 1986 by Continental Gummi-werke AG, Hanover, Federal Republic of Germany (hereinafter referred to as ‘Continental’), and by the Compagnie Général des Etablissements Michelin, Michelin et Cie, Clermont-Ferrand, France (hereinafter referred to as ‘Michelin’), of the cooperation agreement concluded by them on 4 November 1983 for the development of a new run-flat tyre/wheel system, " Having published a summary of the agreement and of the notification in accordance with Article 19 (3) of Regulation No 17 (), ' Having consulted the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas : L THE FACTS A. The procedure (1)  On 27 October 1986, Continental and Michelin notified the Commission of a cooperation agreement entered into by them on 4 November 1983 on the development of a new run-flat tyre/wheel system for passenger car tyres. Pursuant to Article 2 of Regulation No 17, they applied for () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No C 129, 18. 5. 1988, p. 4. @ @) “ negative clearance or, alternatively, exemption - - under Article 85 (3) of the Treaty. B. The undertakings concerned Continental Gummi-Werke AG is a major tyre manufacturer whose head office is situated in Hanover, Federal Republic of Germany. It has subsidiaries within and outside the Community. Continental has since 1979 acquired three other tyre manufacturers: in 1979, the European Uniroyal- companies (now ‘Uniroyal Englebert), whose head offices are situated in Aachen, Federal “Republic of Germany, Herstal, Belgium, and Claitoix, France (group shareholding of 100 %); in 1985, Semperit Reifen AG, whose head office is situated in Vienna, Austria (group shareholding of 75 %) ; and in 1987, General Tire Inc., whose head office is situated in Acron, Ohio, USA (group shareholding of 100 %). With the acquisition of General Tire, Continental has become one of the largest tyre manufacturers in the world. The Michelin Group owned by the parent company Compagnie Générale des Etablissements Michelin, Michelin et Cie, whose head office is situated in Clermont-Ferrand, France, is according to its own figures the second largest tyre manufacturer in the world after Goodyear, USA. It has subsidiaries within and -outside the Community. The Group also owns Kléber (Pneumatiques Kléber, group shareholding of 92,9 %). ' C. The product Continental has since 1979 been working on the - development of a new tyre/wheel system. Under the new system, in contrast to previous systems, the tyre engages radially the inner periphery rather than the outer periphery of the rim. '