3.8.89 Official Journal of the European Communities No L 226/25 COMMISSION COMMISSION DECISION - of 12 July 1989 relating to a proceeding pursuant to Article 85 of the EEC Treaty - (IV/30.566 — UIP) - (Only the English and Dutch texts are authentic) (89/467/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 (1), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 4, 6 and 8 thereof, Having regard to the application for negative clearance and the notification for exemption, submitted under Articles 2 and 4 of Regulation No 17 on 11 February 1982 by United International Pictures BV on behalf of Paramount Pictures Corporation, MCA'Int., and ‘Metro-Goldwyn-Mayer Film Co., of joint venture agreements and related agreements concerning mainly the production and distribution of feature motion pictures, Having regard to the summary .of the application and notification published (2) pursuant to Article 19 (3) of Regulation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: I. THE FACTS - (1)  On 11 February 1982 United International Pictures BV i.o. (hereinafter referred to as ‘UIP’) notified to the Commission, pursuant to Articles 2 and 4 of Regulation No 17 and on behalf of Paramount. Pictures Corporation (Paramount), MCA Inc. (MCA), and Metro-Goldwyn-Mayer. Film. Co. (MGM), a series of agreements, parties to which are the above undertakings, Uriited Artists Corporation (1) OJ No 13, 21. 2. 1962, p. 204/62. (2) O] No C 286, 10. 11. 1988, p. 4. (UA) and Cinema International Corporation -NV- (CIC), with a view to obtaining negative clearance or alternatively an exemption pursuant to Article 85 (3) of the Treaty. (2)  After a preliminary examination; the Commission considered that the agreements contained a number of - clauses that could not be exempted pursuant to Article 85 (3). On 21 May 1985 it therefore opened proceedings and on 20 June 1985 sent the applicants a statement of objections prior to a decision under Article 3 (1) of Regulation No 17. {3)  On 4 November 1985 UIP submitted its reply to the statement of objections requesting an oral hearing in accordance with Article 7 of Regulation No 99/63/EEC (3). The hearing took place on 29 and 30 January 1986. (4) - Following discussions with the Commission, UIP " presented in December 1987 and July 1988 two memoranda -including several undertakings and setting out a number of amendments to the notified agreements. A. The parties and the market concerned (5)  Paramount is-a company with its registered offices in the State of New York; MCA is situated in California and is the parent company of Universal City Studios - Inc. (Universal); MGM is also situated in California and wholly owns UA, a New York company, since July 1981; CIC is a Netherlands company created in . 1970 and owned in equal shares by- MCA and Paramount. On 1 November 1981 Paramount, MCA and ‘MGM, hereinafter referred to as ‘the parent companies’, agreed to form UIP as a corporation under Netherlands law. (%) OJ No 127, 20. 8. 1963, p. 2268/63.