General Court (Fifth Chamber) 22 November 2001, T-139/98 (Amministrazione Autonoma dei Monopoli di Stato (AAMS) v Commission of the European Communities.)

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The Court of First Instance upheld a Commission decision finding that Amministrazione Autonoma dei Monopoli di Stato (AAMS), holding a 100% share of the Italian wholesale cigarette distribution market, abused its dominant position under Article 86 EC (now Article 82 EC) by imposing restrictive clauses in standard distribution agreements with foreign manufacturers—including limitations on new brand introductions, monthly quantity caps, and unjustified inspection requirements—and by engaging in unilateral practices through its inspectors to favour domestic cigarettes over imported ones. The Court confirmed that the relevant geographic market was properly confined to Italian territory given distinct consumer preferences, regulatory requirements, price differentials, and the absence of parallel imports, and that a 100% market share constitutes, absent exceptional circumstances, conclusive evidence of a dominant position. AAMS's application for annulment of the decision and reduction of the EUR 6,000,000 fine was dismissed in its entirety, and the intervener JT International BV's cross-claim for an increase in the fine was rejected as inadmissible.AI