Kingdom of the Netherlands v High Authority of the European Coal and Steel Community (6/54)

Facts

The following facts have given rise to the action by the applicant government:1. The Common Market for coal, ore and scrap was opened on 10 February 1953.2. With particular regard to coal the decisions taken by the High Authority on 12 February 1953, Nos 3/53 and 4/53 regulated the methods of price quotation, the conditions for publicizing the lists and the conditions of sale.Those decisions are still in force; they were amplified by Decision No 30/53 of 2 May 1953, amended by Decision No 1/54 of 7 January 1954 whereby the vendor is bound by his price lists and conditions of sale save in the case of individual transactions or if identical differences apply to all comparable transactions.3. Apart from those measures the High Authority by Decision No 6/53 of 5 March 1953 fixed the maximum prices for coal in a general recommendation which was to expire on 31 March 1954.It laid down price limits for:(a) certain categories of coal from a particular coalfield;(b) certain grades from a particular coalfield;(c) average prices for grades in each category.The grounds for the differentiation are set out in paragraphs 3 and 4 of the preamble to the decision.In application of those principles by its Decisions Nos 7/53 to 24/53 of 6 March 1953 the High Authority laid down the limits for prices in respect of each coalfield on the basis of its list specifically for the Ruhr coalfield by Decision No 9/53 and for the Nord and Pas-de-Calais coalfield by Decision No 13/53.4. As those rules expired on 31 May 1954 they were replaced by new provisions dated 20 March 1954 Nos 18/54, 19/54 and 20/54 which entered into force on 1 April 1954 and expired on 31 March 1955.It is those decisions which are contested by the application.The amendments made to the earlier rules are as follows:as to the undertakings affected, Decision No 6/53 on the one hand is henceforth solely applicable to the Ruhr and the Nord and Pas-de-Calais coalfields; on the other its validity has been extended to 31 March 1955;as to its scope, the aforementioned decision was amended by the removal of the limits for average prices of grades in each category but at the same time maintained the maximum prices for different categories and specific grades of coal.5. The new decision laying down a principle is based on Article 61 and Article 63 (2) of the Treaty.The following are given as the grounds for it:(a) in general terms the development of the Common Market no longer necessitates the maintenance of the fixing of maximum prices for undertakings in all the coalfields of the Community;(b) nevertheless in view of the present structure of the Common Market the selling agency in the Ruhr coalfield and of the Houillères du Nord et du Pas-de-Calais would in fact determine coal prices if the High Authority were to abolish all maximum prices;furthermore, in view of the nature and the volume of production those organizations exert a decisive influence throughout the Common Market.Such a state of affairs could have an effect on the Community contrary to the objectives referred to in Article 3 of the Treaty in particular with regard to prices, production and the employment of labour.6. In order to attain those objectives the High Authority deemed it necessary for a limited period to adopt the measures contested by the application by rendering more flexible the methods previously used for fixing maximum prices, taking account in particular of the increase in revenue as a result of the elimination of certain special charges with effect from 1 April 1954.