21. 3. 91 Official Journal of the European Communities No L 75/57 COMMISSION DECISION of 11 January 1991 relating to a proceeding under Article 85 of the EEC Treaty (IV/31.624 — Vichy) (Only the French text is authentic) (91/153/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 Treaty ('), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 4, 6 and 15 (6) thereof, Having regard to the notification submitted on 29 August 1989 by Société d’Hygiéne Dermatologique de Vichy concerning the agreements forming the basis of the system of selective distribution of Vichy cosmetic products in France and the system of exclusive sale through retail pharmacies employed in the other Member States, After hearing the undertakings concerned in accordance with Article 19 (1) of Regulation No 17 and the provi- sions of Commission Regulation No 99/63/EEC on the hearings provided for in Article 19 (1) and (2) of Council - Regulation No 17 (3, Whereas : I. THE FACTS A. Subject of the Decision (1) By letter dated 26 July 1985 Laboratoires d’Appli- cation Dermatologique de Vichy et Cie, a French subsidiary of Société d’Hygiéne Dermatologique de Vichy (herinafter called Vichy), notified to the Commission a system, limited to France, of exclu- sive distribution of Vichy cosmetic products through retail pharmacists (‘pharmacie d’officine’). Under the system, the grant of authorization as a distributor of Vichy products was subject to posses- sion of a qualification as a dispensing chemist (hereinafter pharmacist). At that time, the French Conseil de la Concurrence was undertaking a review of such exclusive distribution systems employed by laboratories. The notification subse- quently lapsed because the distribution system used - () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No 127, 20. 8. 1963, p. 2268/63. in France was modified in the light of a decision of the conseil de la concurrence (*), which was upheld by the Paris Court of Appeal (¥} and the court of Cassation (). The French authorities applied both domestic and European competition law and found that exclusive distribution through retail pharma- cies infringed Article 85 (1) of the EEC Treaty. However, in France, producers may require sellers of cosmetic products in sales outlets other than retail pharmacies to have the technical qualification of a diploma in pharmacy. (2  This modified distribution system for France was notified by Vichy by letter dated 29 August 1989. At the same time, a preliminary notification of the distribution system for the other Member States (with the exception of Denmark, where Vichy products are not distributed) was sent to the Commission. That notification still provides, outside France, for exclusive distribution through retail pharmacies. (3)  This Decision relates only to the system of exclu- sive distribution through ‘pharmacies, in so far as it requires anything more than the professional quali- fication of a diploma in pharmacy. The selective distribution system employed in France and other clauses are not the subject of this Decision. They will be examined in the Commission’s final Deci- sion. The points covered will include the require- ments as to the location of sales outlets, the display of products, the presence of comparable brands, the range that has to be stocked, storage, the produc- tion of invoices in the event of cross-supplies and the conditions governing the granting of annual discounts. B. The parties (4 Vichy is a wholly owned subisdiary of the L’Oréal group. In 1987 L’'Oréal’s turnover amounted to approximately ECU 3,4 billion, ECU 116,5 million of which was accounted for by Vichy. (*) Decision No 87-D 15 of the conseil de la Concurrence of 9 June 1987. (*) Judgment of the Paris Court of Appeal of 28 January 1988. () Judgment of the Court of Cassaton of 25 April 1989.