Cars are substantially cheaper in Italy than in Germany and Austria because of tax differences, On the grounds of European Law consumers are allowed to buy their cars anywhere in the European Union, Many Germans made use of this and they bought their cars in Italy. Volkswagen AG is one of the largest automobile manufacturers within the European Union, Volkswagen has a large dealer network throughout the European Union, which sells cars under the names Volkswagen and Audi. Volkswagen dealers are independent entrepreneurs who have a contractual relationship with Volkswagen AG. In this contract it is stated that it is prohibited for a dealer to re-export the cars to any other country in the EC. Also Volkswagen tries to restrict those parallel imports from Italy by imposing supply quotas to Italian dealers and a bonus system discouraging them from selling to non-Italian customers. Volkswagen dealers in the south of Germany and in Austria started to complain with Volkswagen AG that customers were leaving them for Italian dealers. Volkswagen AG put a great deal of pressure on its Italian dealers, reminding them of the contents of the dealer contracts and intimidating them or threatening to withdraw their dealership if they were to sell Volkswagen cars to non-Italians. After an investigation of the Commission it appeared that twelve Italian companies had lost their dealership and that fifty companies had been threatened. What can the Commission do?