Free movement of Services.
Note: Set laws will only be applicable upon the Member States(MS) of European Union (EU).
Note: Free movement of establishment(permeant in nature)is different from free movement of
services (temporary in nature).
Definition Of Service.
It comes from the treaty article.
Article 57 of the Treaty of Functioning of European Union(TFEU).Anything which is temporary
in nature and provided for remuneration.
Courts further clarified it in the case of Gebhard that are services which are temporary in
nature will be considered as service. On the contrary which is not temporary in nature will be
considered as establishment.
• Private school providing education service will be considered as service.
• Government school providing education service will not be considered as service
(Humble).
Generally service include any economic activity and not for profit activities may not be
considered as services. However, service which can derive indirect economic benefit will fall
under the definition of service (Deliege).
Right to provide/ receive services.
It comes from the treaty article.
Article 56 of TFEU. Precludes/restricts any measure which hinders free movement of services.
There are three categories of cross border activities.
1. Where a service provider moves temporarily from one MS to another MS.
2. Where the recipient of a service moves from one MS to another MS.
3. Where the service itself moves from one MS to another MS.
Every person has a right to provide services (Ciola) and by interpretation, the CJEU has also
granted a right to every person to receive a service(Luisi and Carbone).
Derogations.
Note: Set laws will only be applicable upon the Member States(MS) of European Union (EU).
Note: Free movement of establishment(permeant in nature)is different from free movement of
services (temporary in nature).
Definition Of Service.
It comes from the treaty article.
Article 57 of the Treaty of Functioning of European Union(TFEU).Anything which is temporary
in nature and provided for remuneration.
Courts further clarified it in the case of Gebhard that are services which are temporary in
nature will be considered as service. On the contrary which is not temporary in nature will be
considered as establishment.
• Private school providing education service will be considered as service.
• Government school providing education service will not be considered as service
(Humble).
Generally service include any economic activity and not for profit activities may not be
considered as services. However, service which can derive indirect economic benefit will fall
under the definition of service (Deliege).
Right to provide/ receive services.
It comes from the treaty article.
Article 56 of TFEU. Precludes/restricts any measure which hinders free movement of services.
There are three categories of cross border activities.
1. Where a service provider moves temporarily from one MS to another MS.
2. Where the recipient of a service moves from one MS to another MS.
3. Where the service itself moves from one MS to another MS.
Every person has a right to provide services (Ciola) and by interpretation, the CJEU has also
granted a right to every person to receive a service(Luisi and Carbone).
Derogations.
