Quantitative Restrictions

Question 1

What is a quantitative restriction?

Answer 1

Either an outright ban or a quota

Question 2

Which case defined quantitative restrictions?

Answer 2

Geddo.

Question 3

What are the three potential types of Measures Equivalent to Quantitative Restrictions?

Answer 3

Product Requirements, Selling Arrangements and Use Restrictions.

Question 4

Which case illustrates a product requirement?

Answer 4

Cassis.

Question 5

What EU applies to custom duties, CEES, quantitative restrictions and MEQRs?

Answer 5

Article 28, Article 30, Article 34, Article 35 and Article 36 TFEU.

Question 6

What are the facts of Cassis?

Answer 6

Germany imposed certain alcohol limits on alcoholic beverages. Other countries in Europe had different requirements for the percentage of alcohol in alcoholic beverages. These countries were effectively banned from selling their alcoholic drinks in Germany. The Court said if there is no harmonisation on the issue in question then Member States have to exercise mutual recognition.

Question 7

What are the facts of Dassonville?

Answer 7

A Belgian dealer bought Scottish whiskey in France. At this point the UK was not a member of the EEC. The whiskey was, therefore, in free circulation in the internal market. Belgian law required that the whiskey have a certificate of origin - this whiskey did not have such a certificate. The dealer attempted to forge a certificate and was prosecuted for forgery. The Court held that this was an MEQR as the requirement for a certificate of origin made it more difficult to sell foreign whiskey as opposed to domestically produced whiskey.

Question 8

All trading rules enacted by a Member State which are “capable of hindering, directly or indirectly, actually or potentially, intra-Community trade are to be considered as “measures having an effect equivalent to quantitative restrictions”.
What is being described here?

Answer 8

Measure Equivalent to a Quantitative Restriction (MEQR).

Question 9

Which case is known as the Sunday Trading case?

Answer 9

Torfaen Borough Council v B&Q plc.

Question 10

What are the facts of Torfaen Borough Council v B&Q plc (Sunday Trading)?

Answer 10

in 1990s the UK restricted Sunday Trading. Its purpose was to protect workers as well as protecting British culture. The UK is a Christian country and Sunday was considered the day of rest. To have shopping would have been contrary to this. This was challenged by a group, notably B&Q plc. B&Q argued that the Sunday Trading ban could hinder trade by way of this Dassonville formula. The Court said that this could infringe Article 34 but only if it could be proven that the volume of goods is less than if Sunday Trading had been allowed.

Question 11

Which case defines selling arrangements?

Answer 11

Keck.

Question 12

What are the facts of Keck?

Answer 12

There was a criminal prosecution in France of the applicants for selling (French) coffee and beer at a loss (contrary to French law). The applicants argued that the rule under which they were being prosecuted was contrary to competition law as it hindered the free movement of goods by way of the Dassonville formula.

Question 13

How did the Court alter the law of MEQRs in Keck?

Answer 13

The Court said that “contrary to what has been previously decided” what has occurred in the case of Keck is a selling arrangement. Selling arrangements fall out with the scope of Article 34 and Dassonville and are, therefore, prima facie, lawful. As long as the selling arrangement does not discriminate in law or fact between goods from other Member States and domestically produced goods then a selling arrangement is lawful.

Question 14

Rules that govern HOW, WHEN and WHERE goods are marketed. Selling arrangements fall out with the scope of Article 34 and Dassonville and are prima facie lawful as long as they do not discriminate in law or in fact.
What is being described here?

Answer 14

Selling arrangements.

Question 15

What is a market requirement?

Answer 15

These regulate the goods themselves. These are still governed by Article 34 and Dassonville and are prohibited unless they fulfil the mandatory requirements or Article 36.

Question 16

What effect did Keck have?

Answer 16

It narrowed the scope of Article 34 and Dassonville.

Question 17

Which case illustrates a selling arrangement in relation to a ban on advertising?

Answer 17

De Agostini.

Question 18

What are the facts of De Agostini?

Answer 18

This case concerned a blanket ban advertising in Sweden. This is a selling arrangement because it concerns how goods are sold and so is prima facie lawful. The Court, however, said that this was an unlawful selling arrangement and so an MEQR because it discriminated factually against non-domestically produced beer. In reality domestic brewers were a lot more well known than foreign brewers. Foreign brewers would, therefore, be at a disadvantage as they would not be able to advertise to increase awareness of their brand.

Question 19

What test is used to determine a use restriction (third type of potential MEQR)?

Answer 19

The Dassonville formula (as used to determine a product requirement).

Question 20

The following case was heard in the Grand Chamber. Italy banned the sale of trailers that could be pulled by motorbikes on the grounds of public safety. Court said that use restrictions fell within Article 34 and so could potentially be deemed an MEQR, however, this use restriction could be justified under Article 36.
Which case is being described above?

Answer 20

Commission v Italy (Italian Trailers).

Question 21

What are the facts of Mickelsson & Roos?

Answer 21

Sweden banned the use of jet skis on inland waterways. This was held to be a use restriction and so potentially fell within the ambit of Article 34, however, it could be justified by Article 36 on the grounds of public safety.