Free Movement of Services Flashcards
Provision prohibiting restrictions on services
Art 56 TFEU
The Services Directive
Directive 2006/123/EC
Problem Q stages (5)
- Is it a service?
- What is it governed by? (directive, specific leg, case law and art 56 directly)
- Is it restricted
- Is the restriction justified?
- Is the restriction proportionate?
Schindler (What is a service?)
What is a service: Distinction from goods
Buying a lottery ticket was provision of a service as the ticket itself was ancillary to the substance of the transaction
Schnitzer
What is a service: distinction from establishment
Factors considered in evaluating permanence of an establishment:
- duration of provision of service
- regularity
- periodical nature or continuity?
- Infrastructure
(Provider may remain temporary while having some infrastructure in another MS if it is necessary for the purpose of performing the services in question)
Van Binsbergen
What is a service: Must have a cross border element
Service provider may travel to another state:
Dutch lawyer traveled to Netherlands to represent clients
Luisi and Carbone (What is a service)
What is a service: Must have a cross border element
Recipient can travel to another state to receive a service:
Laws obstructing citizens travelling to another MS to receive medical services fel within art 56
Commission v Italy (Tour Guides)
What is a service: Must have a cross border element
The recipient and the provider can both travel and meet in a third member state
Sketteministeriet v Verstergard
What is a service: Must have a cross border element
The service itself can move:
Danish company organised training courses for Dutch workers on Greek islands.
Held Art 56 could apply, it is sufficient for services to be provided to the nationals of an MS on the territory of another MS irrespective of the place of establishment of the provider or the recipient of the service
ITC
What is a service: Must have a cross border element
The service itself can move:
A Domestic contract can fall within Art 56 if an important part of the work for which the provider is paid takes place abroad
Provision stating services must be normally provided for remuneration
Art 57 TFEU
Chalmers (textbook)
What is a service: Normally provided for remuneration
Meaning of ‘normally’ has not yet been discussed by the court but is probably intended to make way for the occasional services provided for free e.g for marketing purposes
Humbel
What is a service: Normally provided for remuneration
Not every payment is remuneration:
Essential characteristic is that remuneration provides consideration
Can be contrasted with payments that are intended to fund/support the provider with a non-commercial motive e.g university education
Tolsma
What is a service: Normally provided for remuneration
Money given to buskers could not be seen as remuneration as there was no obligation to pay
Gaerets-Smits (What is a service)
What is a service: Normally provided for remuneration
Motivation of the provider is not important:
there is no need for service providers to make a profit
Arblade
Restrictions on services: what is a restriction?
non-discriminatory measures may be caught by art 56 if they are ‘liable to prohibit, impede or render less advantageous the activities of a provider or services established in another MS where he lawfully provides similar services’
What is a restriction?
Can be direct or indirect
Enough that there is a possibility that a measure could hinder free movement of services
Can be discriminatory or non discriminatory
Mobistar
Viacom Outdoor
Restrictions on services: what is a restriction?
Measures of which the only effect was to create additional costs which affect the provision of services between and within MSs equally do not fall within the scope of Art 56
Otherwise almost every tax or regulation would fall within art 56