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EU | Free Movement Of Business

Business Mobility: Directive 2006/123

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Business Mobility: Directive 2006/123

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  • referred to as Services Directive
  • aims: simplify administrative procedures / make service provision easier
  • Article 2(1): applies to services supplied / individuals & companies / established in Member State (Article 49 TFEU)
  • Article 4(1): self-employed economic activity / normally provided for remuneration (Article 57 TFEU) / establishment (Article 56 TFEU) / excluded: healthcare & financial services

Freedom of establishment

Authorisation schemes

  • Articles 9 - 13: permitted: not discriminate against the provider (indistinctly applicable measures) / if necessary overriding reason relating to the public interest (public health, consumer protection, environmental protection) / proportionate
  • Article 14: prohibited: distinct & indistinctly applicable measures / prohibitions on having an establishment in more than one Member State / obligations to take out insurance from provider established in host State
  • Article 49 TFEU: covers these requirements / Services Directive outright ban

Requirements to be evaluated

  • Article 15: quantitative or territorial restrictions / obligation on provider to take specific legal form / obligation on a provider to supply other services jointly with his service
  • only justified: non-discriminatory / necessary overriding reason relating to the public interest (public health, public policy, public security, environmental protection) / proportionate
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Business Mobility: Directive 2006/123

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Freedom to provide services

  • Article 16(1): may not impose requirements on incoming service providers / distinctly applicable: totally prohibited
  • indistinctly applicable: only justified: necessary overriding reason relating to the public interest (public health, public policy., public security, environmental protection) / proportionate
  • Article 16(2): prohibited outright: provider in one state must have establishment in host State / register with professional body in host State
  • Article 17: derogations Article 16: services of general economic interest (postal & utility services) / data processing / shipment of waste
  • Article 18: derogations Article 16 / some on safety grounds

Rights of recipients of services

  • Articles 19 - 20: prohibits: requiring recipients to use certain providers / discrimination users from other States must be objectively justified
  • Article 21: recipients / obtain adequate information about providers frpm other States
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