Table of Contents
I theme. European Single (Internal) Market...............................................................................................................3
1.1. Forms of economic integration and the internal market....................................................................................3
1.2. European Community internal market freedoms................................................................................................3
1.2. The concept of discrimination.............................................................................................................................4
1.3. National rules restricting fundamental freedoms...............................................................................................5
Topic II. Free movement of goods..............................................................................................................................6
2.1. The concept of goods...........................................................................................................................................8
2.2. Duties and charges having equivalent effect.......................................................................................................9
2.3. Internal taxes.....................................................................................................................................................10
2.3.1. The concept of internal taxation.....................................................................................................................11
2.3.2. Similar and competing goods..........................................................................................................................11
2.3.3. 90 p. The scope of the prohibition on taxation laid down in Parts I and II.....................................................12
2.3.4. Objectively different internal tax....................................................................................................................12
2.4. Quantitative restrictions on imports and exports and measures having equivalent effect..............................13
2.4.1. The concept of quantitative restrictions on imports and measures having equivalent effect and the scope
of the prohibition......................................................................................................................................................13
2.4.1.1. Directive 70/50.............................................................................................................................................13
2.4.2. The concept of quantitative restrictions on exports and measures having equivalent effect, and the scope
of the prohibition......................................................................................................................................................19
2.4.3. Conditions for justification of the restriction.................................................................................................20
Theme III. Free movement of persons......................................................................................................................21
3.1. General rules on the free movement of persons..............................................................................................21
3.1.1. Economic activity............................................................................................................................................21
3.1.2. Prohibition of discrimination..........................................................................................................................22
3.1.3. Internal situation.............................................................................................................................................22
3.2. General rights of free movement of persons....................................................................................................23
3.2.1. Right of departure and right of entry.............................................................................................................23
3.2.2. Right of residence...........................................................................................................................................23
3.3. Free movement of workers and EC labor law....................................................................................................24
3.3.1. Subjects...........................................................................................................................................................25
3.4. Prohibition of restrictions on the free movement of workers..........................................................................26
3.5. Employees and their family members have rights............................................................................................27
3.6. Right to work and working conditions...............................................................................................................27
Topic IV. Freedom of establishment.........................................................................................................................28
4.1. Abolition of restrictions on freedom of establishment.....................................................................................29
4.2. Prohibition of restrictions on freedom of establishment: case law of the European Court of Justice.............30
4.3. Entities of freedom of establishment................................................................................................................31
4.3.1. Natural persons...............................................................................................................................................31
4.3.2. Companies.......................................................................................................................................................31
V theme. Freedom to provide services.....................................................................................................................41
5.1. The concept of service.......................................................................................................................................41
5.2. Remuneration for services.................................................................................................................................41
5.3. Relationship between the freedom to provide services and other freedoms..................................................41
5.4. Directory of services..........................................................................................................................................42
5.5. Right to provide and receive services................................................................................................................42
5.6. Entities providing the freedom to provide services...........................................................................................43
5.7. "Recipient and provider established in different Member States"...................................................................43
5.8. Prohibition of restrictions on the freedom to provide services........................................................................44
5.9. The concept of restrictions on the freedom to provide services......................................................................44
5.10. Services Directive.............................................................................................................................................45
General questions for topics III, IV and V..................................................................................................................47
1. Conditions for the justification of a restriction on the freedom of movement of persons and the provision of
services......................................................................................................................................................................47
1.1. Exceptions provided for in the EC Treaty...........................................................................................................47
1.2. Imperative grounds of general interest.............................................................................................................50
1
,2. Recognition of qualifications in the freedoms of movement for persons and services.......................................51
2.1. Harmonization with secondary legislation........................................................................................................52
VI theme. Free movement of capital........................................................................................................................53
6.1. Economic and monetary union..........................................................................................................................53
6.2. Regulation of free capital in the EC Treaty........................................................................................................56
6.3. The concept of restrictions................................................................................................................................57
6.4. Prohibition of restrictions..................................................................................................................................57
6.5. Conditions for justification of restrictions.........................................................................................................57
6.5.1. Established by the ECJ.....................................................................................................................................57
6.5.2. Set out in the EC Treaty..................................................................................................................................57
VII theme. Competition law......................................................................................................................................58
7.1. Basic concepts....................................................................................................................................................58
7.1.1. Firm.................................................................................................................................................................58
7.1.2. Market power.................................................................................................................................................59
7.1.3. Relevant market..............................................................................................................................................59
7.1.4. Commodity market.........................................................................................................................................59
7.2. Agreements between undertakings, decisions by associations of undertakings and concerted practices......61
7.2.1. Agreements.....................................................................................................................................................61
7.2.2. Decisions of business associations..................................................................................................................62
7.2.3. Concerted actions...........................................................................................................................................62
7.2.4. Content of the agreement, decision of an association of undertakings or concerted practice.....................63
7.2.5. Types of prohibited agreements.....................................................................................................................65
7.2.6. Exceptions.......................................................................................................................................................65
7.2.7. Abuse of a dominant position.........................................................................................................................67
7.2.7.2. Dominant position in the common market or in a substantial part of it....................................................67
7.2.7.3. Collective dominance...................................................................................................................................68
7.2.7.4. Abuse...........................................................................................................................................................68
7.2.7.5. Consequences of the infringement of a dominant position........................................................................69
7.2.8. Concentration control.....................................................................................................................................69
VIII theme. State aid..................................................................................................................................................70
8.1. The concept of State aid....................................................................................................................................70
8.2. Legitimate state aid............................................................................................................................................71
8.3. Aid which is found to be lawful..........................................................................................................................71
8.4. Commission rights in state aid regulation.........................................................................................................71
IX theme. EC environmental protection...................................................................................................................71
9.1. Sources...............................................................................................................................................................71
9.2. General EC environmental objectives and principles........................................................................................72
9.3. Decision making.................................................................................................................................................72
X theme. Strengthening the single market: harmonization of law..........................................................................73
10.1. Genesis of harmonization frameworks and their interpretation....................................................................73
10.2. Article 94 of the Treaty....................................................................................................................................74
10.3. Article 308 of the Treaty..................................................................................................................................74
10.4. Article 95 of the Treaty....................................................................................................................................74
10.5. Some other basics of harmonization...............................................................................................................75
XI theme. EU law in the Lithuanian legal system......................................................................................................76
11.1. Advance periods...............................................................................................................................................76
11.2. Exceptions........................................................................................................................................................77
2
, EU Law. Basic legislation. Cases
I theme. European Single (Internal) Market
The post-war integration of Europe, which led to the creation of the European Coal and Steel, the
European Atomic Energy Community and the European Economic Community, stemmed not from
ideological considerations but from the obvious need to rebuild the destroyed European economy.
Not surprisingly, as a result of these economic incentives, the European Economic Community has
committed itself to the ultimate goal of creating a single market.
1.1. Forms of economic integration and the internal market
In international economic integration, several main forms of regional economic integration can be
distinguished.
Free trade area or zone. Abolition of customs duties and quantitative restrictions (quotas) on trade
in products produced in countries which are members of a free trade area. Members of the free trade
area retain their individual trade policy and customs sovereignty vis-à-vis third countries. Free trade
areas are mostly limited to industrial production, while agricultural production is largely decoupled
from free trade.
Customs union. Free trade area and waiver of Member States' trade and customs sovereignty vis-à-
vis third countries, including the introduction of a common customs tariff vis-à-vis third countries.
The customs union and the free trade area concern only the movement of goods.
Single (internal) market. The single market not only applies the rules of the free trade area, but
also a harmonized external trade policy, but also removes restrictions on the movement of goods,
services, people and capital between them. The single market consists of two parts: the internal
market, which is linked to the four freedoms that apply between the Member States of the internal
market, and the external dimension, which includes, in particular, the establishment of a common
regime vis-à-vis third countries. In addition, some economic policies are being jointly developed.
Economic Union. Economic union encompasses the results of all the above-mentioned regional
integration processes, and the Member States coordinate their economic policies. Other policies are
also being coordinated - regional and social policies, and a common fiscal policy (eg monetary
union) is in place.
1.2. European Community internal market freedoms
Pursuant to Article 14 of the Treaty establishing the European Community. The internal market
shall be established within the Community:
Article 14 (ex Article 7a)
1. The Community shall take measures to ensure that, in accordance with the provisions of this
Article and Articles 15 and 26, Article 47 (2), Articles 49, 80, 93 and 95 and without prejudice to
the other provisions of this Treaty, 31 December the gradual establishment of the internal market.
2. The internal market shall comprise an area without internal frontiers in which the free
3
, movement of goods, persons, services and capital is ensured in accordance with the
provisions of this Treaty.
3. The Council, acting by a qualified majority on a proposal from the Commission, shall establish
the guidelines and conditions necessary to ensure continuous progress in all the sectors concerned.
The internal market may be affected by various restrictions or obstacles imposed by Member States.
The EC Treaty sought to remove the following restrictions and obstacles:
Article 3 (ex Article 3)
1. In pursuit of the objectives set out in Article 2, the activities of the Community shall, in
accordance with this Treaty and within the time limits set therein, be as follows:
...
(c) the internal market, in which obstacles to the free movement of goods, persons, services and
capital between Member States are eliminated;
The EC Treaty imposes a wide range of restrictions on the free movement of goods, prohibiting
measures having equivalent effect to quantitative restrictions (Articles 28 and 29), the freedom of
establishment, the freedom to provide services and the free movement of capital (Articles 43, 49
and 56). insurance - both discriminatory and non-discriminatory restrictions are prohibited. In one
of the components of the free movement of persons, the movement of workers in the Las Vegas, the
EC Treaty enshrined the prohibition of discrimination (Article 39 (2)), but following the case law of
the European Court of Justice, both discriminatory and non-discriminatory measures insurance.
Some authors distinguish between broad and narrow concepts of restriction insurance. In a broad
sense, the prohibition of restrictions includes the prohibition of the identification and application of
both discriminatory and non-discriminatory barriers. In that sense, the prohibition of restrictions can
be divided into the prohibition of discriminatory restrictions and the prohibition of non-
discriminatory restrictions.
In the strict sense, the prohibition of restrictions means only the prohibition of non - discriminatory
measures. In other words, the latter authors make a clear distinction between the prohibition of
discrimination as falling outside the concept of the prohibition of restrictions.
1.2. The concept of discrimination
The EC Treaty lays down a general prohibition of discrimination on grounds of nationality, but does
not contain the very concept of discrimination:
Article 12 (ex Article 6)
Within the scope of application of this Treaty, and without prejudice to any special provisions
contained therein, any discrimination on grounds of nationality shall be prohibited.
The Council, acting in accordance with the procedure referred to in Article 251, may adopt rules
prohibiting such discrimination.
In a more general sense, discrimination has been defined by the Court, noting that discrimination is
defined as situations in which persons are treated differently in the same circumstances and treated
in the same way in different circumstances, unless such treatment is objectively justified. It should
be noted that, in order to establish discrimination, it is first necessary to ascertain whether the
situations in question can be compared. If it is not possible to compare situations, it is not possible
to establish the existence of discrimination. In such a case, it should be determined whether the
4
I theme. European Single (Internal) Market...............................................................................................................3
1.1. Forms of economic integration and the internal market....................................................................................3
1.2. European Community internal market freedoms................................................................................................3
1.2. The concept of discrimination.............................................................................................................................4
1.3. National rules restricting fundamental freedoms...............................................................................................5
Topic II. Free movement of goods..............................................................................................................................6
2.1. The concept of goods...........................................................................................................................................8
2.2. Duties and charges having equivalent effect.......................................................................................................9
2.3. Internal taxes.....................................................................................................................................................10
2.3.1. The concept of internal taxation.....................................................................................................................11
2.3.2. Similar and competing goods..........................................................................................................................11
2.3.3. 90 p. The scope of the prohibition on taxation laid down in Parts I and II.....................................................12
2.3.4. Objectively different internal tax....................................................................................................................12
2.4. Quantitative restrictions on imports and exports and measures having equivalent effect..............................13
2.4.1. The concept of quantitative restrictions on imports and measures having equivalent effect and the scope
of the prohibition......................................................................................................................................................13
2.4.1.1. Directive 70/50.............................................................................................................................................13
2.4.2. The concept of quantitative restrictions on exports and measures having equivalent effect, and the scope
of the prohibition......................................................................................................................................................19
2.4.3. Conditions for justification of the restriction.................................................................................................20
Theme III. Free movement of persons......................................................................................................................21
3.1. General rules on the free movement of persons..............................................................................................21
3.1.1. Economic activity............................................................................................................................................21
3.1.2. Prohibition of discrimination..........................................................................................................................22
3.1.3. Internal situation.............................................................................................................................................22
3.2. General rights of free movement of persons....................................................................................................23
3.2.1. Right of departure and right of entry.............................................................................................................23
3.2.2. Right of residence...........................................................................................................................................23
3.3. Free movement of workers and EC labor law....................................................................................................24
3.3.1. Subjects...........................................................................................................................................................25
3.4. Prohibition of restrictions on the free movement of workers..........................................................................26
3.5. Employees and their family members have rights............................................................................................27
3.6. Right to work and working conditions...............................................................................................................27
Topic IV. Freedom of establishment.........................................................................................................................28
4.1. Abolition of restrictions on freedom of establishment.....................................................................................29
4.2. Prohibition of restrictions on freedom of establishment: case law of the European Court of Justice.............30
4.3. Entities of freedom of establishment................................................................................................................31
4.3.1. Natural persons...............................................................................................................................................31
4.3.2. Companies.......................................................................................................................................................31
V theme. Freedom to provide services.....................................................................................................................41
5.1. The concept of service.......................................................................................................................................41
5.2. Remuneration for services.................................................................................................................................41
5.3. Relationship between the freedom to provide services and other freedoms..................................................41
5.4. Directory of services..........................................................................................................................................42
5.5. Right to provide and receive services................................................................................................................42
5.6. Entities providing the freedom to provide services...........................................................................................43
5.7. "Recipient and provider established in different Member States"...................................................................43
5.8. Prohibition of restrictions on the freedom to provide services........................................................................44
5.9. The concept of restrictions on the freedom to provide services......................................................................44
5.10. Services Directive.............................................................................................................................................45
General questions for topics III, IV and V..................................................................................................................47
1. Conditions for the justification of a restriction on the freedom of movement of persons and the provision of
services......................................................................................................................................................................47
1.1. Exceptions provided for in the EC Treaty...........................................................................................................47
1.2. Imperative grounds of general interest.............................................................................................................50
1
,2. Recognition of qualifications in the freedoms of movement for persons and services.......................................51
2.1. Harmonization with secondary legislation........................................................................................................52
VI theme. Free movement of capital........................................................................................................................53
6.1. Economic and monetary union..........................................................................................................................53
6.2. Regulation of free capital in the EC Treaty........................................................................................................56
6.3. The concept of restrictions................................................................................................................................57
6.4. Prohibition of restrictions..................................................................................................................................57
6.5. Conditions for justification of restrictions.........................................................................................................57
6.5.1. Established by the ECJ.....................................................................................................................................57
6.5.2. Set out in the EC Treaty..................................................................................................................................57
VII theme. Competition law......................................................................................................................................58
7.1. Basic concepts....................................................................................................................................................58
7.1.1. Firm.................................................................................................................................................................58
7.1.2. Market power.................................................................................................................................................59
7.1.3. Relevant market..............................................................................................................................................59
7.1.4. Commodity market.........................................................................................................................................59
7.2. Agreements between undertakings, decisions by associations of undertakings and concerted practices......61
7.2.1. Agreements.....................................................................................................................................................61
7.2.2. Decisions of business associations..................................................................................................................62
7.2.3. Concerted actions...........................................................................................................................................62
7.2.4. Content of the agreement, decision of an association of undertakings or concerted practice.....................63
7.2.5. Types of prohibited agreements.....................................................................................................................65
7.2.6. Exceptions.......................................................................................................................................................65
7.2.7. Abuse of a dominant position.........................................................................................................................67
7.2.7.2. Dominant position in the common market or in a substantial part of it....................................................67
7.2.7.3. Collective dominance...................................................................................................................................68
7.2.7.4. Abuse...........................................................................................................................................................68
7.2.7.5. Consequences of the infringement of a dominant position........................................................................69
7.2.8. Concentration control.....................................................................................................................................69
VIII theme. State aid..................................................................................................................................................70
8.1. The concept of State aid....................................................................................................................................70
8.2. Legitimate state aid............................................................................................................................................71
8.3. Aid which is found to be lawful..........................................................................................................................71
8.4. Commission rights in state aid regulation.........................................................................................................71
IX theme. EC environmental protection...................................................................................................................71
9.1. Sources...............................................................................................................................................................71
9.2. General EC environmental objectives and principles........................................................................................72
9.3. Decision making.................................................................................................................................................72
X theme. Strengthening the single market: harmonization of law..........................................................................73
10.1. Genesis of harmonization frameworks and their interpretation....................................................................73
10.2. Article 94 of the Treaty....................................................................................................................................74
10.3. Article 308 of the Treaty..................................................................................................................................74
10.4. Article 95 of the Treaty....................................................................................................................................74
10.5. Some other basics of harmonization...............................................................................................................75
XI theme. EU law in the Lithuanian legal system......................................................................................................76
11.1. Advance periods...............................................................................................................................................76
11.2. Exceptions........................................................................................................................................................77
2
, EU Law. Basic legislation. Cases
I theme. European Single (Internal) Market
The post-war integration of Europe, which led to the creation of the European Coal and Steel, the
European Atomic Energy Community and the European Economic Community, stemmed not from
ideological considerations but from the obvious need to rebuild the destroyed European economy.
Not surprisingly, as a result of these economic incentives, the European Economic Community has
committed itself to the ultimate goal of creating a single market.
1.1. Forms of economic integration and the internal market
In international economic integration, several main forms of regional economic integration can be
distinguished.
Free trade area or zone. Abolition of customs duties and quantitative restrictions (quotas) on trade
in products produced in countries which are members of a free trade area. Members of the free trade
area retain their individual trade policy and customs sovereignty vis-à-vis third countries. Free trade
areas are mostly limited to industrial production, while agricultural production is largely decoupled
from free trade.
Customs union. Free trade area and waiver of Member States' trade and customs sovereignty vis-à-
vis third countries, including the introduction of a common customs tariff vis-à-vis third countries.
The customs union and the free trade area concern only the movement of goods.
Single (internal) market. The single market not only applies the rules of the free trade area, but
also a harmonized external trade policy, but also removes restrictions on the movement of goods,
services, people and capital between them. The single market consists of two parts: the internal
market, which is linked to the four freedoms that apply between the Member States of the internal
market, and the external dimension, which includes, in particular, the establishment of a common
regime vis-à-vis third countries. In addition, some economic policies are being jointly developed.
Economic Union. Economic union encompasses the results of all the above-mentioned regional
integration processes, and the Member States coordinate their economic policies. Other policies are
also being coordinated - regional and social policies, and a common fiscal policy (eg monetary
union) is in place.
1.2. European Community internal market freedoms
Pursuant to Article 14 of the Treaty establishing the European Community. The internal market
shall be established within the Community:
Article 14 (ex Article 7a)
1. The Community shall take measures to ensure that, in accordance with the provisions of this
Article and Articles 15 and 26, Article 47 (2), Articles 49, 80, 93 and 95 and without prejudice to
the other provisions of this Treaty, 31 December the gradual establishment of the internal market.
2. The internal market shall comprise an area without internal frontiers in which the free
3
, movement of goods, persons, services and capital is ensured in accordance with the
provisions of this Treaty.
3. The Council, acting by a qualified majority on a proposal from the Commission, shall establish
the guidelines and conditions necessary to ensure continuous progress in all the sectors concerned.
The internal market may be affected by various restrictions or obstacles imposed by Member States.
The EC Treaty sought to remove the following restrictions and obstacles:
Article 3 (ex Article 3)
1. In pursuit of the objectives set out in Article 2, the activities of the Community shall, in
accordance with this Treaty and within the time limits set therein, be as follows:
...
(c) the internal market, in which obstacles to the free movement of goods, persons, services and
capital between Member States are eliminated;
The EC Treaty imposes a wide range of restrictions on the free movement of goods, prohibiting
measures having equivalent effect to quantitative restrictions (Articles 28 and 29), the freedom of
establishment, the freedom to provide services and the free movement of capital (Articles 43, 49
and 56). insurance - both discriminatory and non-discriminatory restrictions are prohibited. In one
of the components of the free movement of persons, the movement of workers in the Las Vegas, the
EC Treaty enshrined the prohibition of discrimination (Article 39 (2)), but following the case law of
the European Court of Justice, both discriminatory and non-discriminatory measures insurance.
Some authors distinguish between broad and narrow concepts of restriction insurance. In a broad
sense, the prohibition of restrictions includes the prohibition of the identification and application of
both discriminatory and non-discriminatory barriers. In that sense, the prohibition of restrictions can
be divided into the prohibition of discriminatory restrictions and the prohibition of non-
discriminatory restrictions.
In the strict sense, the prohibition of restrictions means only the prohibition of non - discriminatory
measures. In other words, the latter authors make a clear distinction between the prohibition of
discrimination as falling outside the concept of the prohibition of restrictions.
1.2. The concept of discrimination
The EC Treaty lays down a general prohibition of discrimination on grounds of nationality, but does
not contain the very concept of discrimination:
Article 12 (ex Article 6)
Within the scope of application of this Treaty, and without prejudice to any special provisions
contained therein, any discrimination on grounds of nationality shall be prohibited.
The Council, acting in accordance with the procedure referred to in Article 251, may adopt rules
prohibiting such discrimination.
In a more general sense, discrimination has been defined by the Court, noting that discrimination is
defined as situations in which persons are treated differently in the same circumstances and treated
in the same way in different circumstances, unless such treatment is objectively justified. It should
be noted that, in order to establish discrimination, it is first necessary to ascertain whether the
situations in question can be compared. If it is not possible to compare situations, it is not possible
to establish the existence of discrimination. In such a case, it should be determined whether the
4
