Service Providers in Europe

Obligation of non-discrimination in general conditions of service providers in relation to the E.U. Services Directive

The following is an examination of obligation of non-discrimination in general conditions of service providers regarding the European Union Servicies Directive [1]:

Obligation of non-discrimination in general conditions of service providers: Principle of non-discrimination

In the Context of Obligations relating to the rights of recipients of services

Article 20(2) requires Member States to ensure that general conditions of access to a service which are made available to the public at large by a service provider do not contain discriminatory provisions based on nationality or the place of residence of recipients.

It is clear, however, that the Directive does not intend to prevent differences in treatment in general conditions based on objective business considerations. In this respect, paragraph 2 explicitly indicates that the prohibition of discrimination does not preclude the possibility for service providers to apply different conditions of access where these differences are justified by objective criteria. As clarified in Recital 95, objective circumstances which could justify differences in tariffs, prices or other conditions might be, for example, additional costs incurred because of the distance involved or the technical characteristics of the provision of the service, etc.

Again, in order to implement this provision Member States may need to include in their horizontal framework legislation implementing the Directive a general provision embodying Article 20(2). This is important to allow recipients to rely on the principle of non-discrimination vis-à-vis service providers.

Providers covered in relation to the E.U. Services Directive

The following is an examination of providers covered regarding the European Union Servicies Directive [1]:

Providers covered: Scope of Application of the EU Services Directive

The Services Directive applies to services which are provided by a natural person who is a national of a Member State or by a legal person within the meaning of Article 48 of the EC Treaty26 and established in a Member State. As clarified in Recital 38, the concept of “legal person” encompasses all entities constituted under, or governed by, the law of a Member State27, irrespective of whether under national law they are considered to have legal personality. All these entities have to be covered by the implementation of the Directive. By contrast, services provided by natural persons who are not nationals of a Member State or by entities which are established outside the Community or are not incorporated in accordance with the laws of a Member State are not covered by the Directive.

Resources

Notes

1. Information on providers covered based on the EU Services Directive Handbook, UK Government

See Also

Resources

Notes

1. Information on obligation of non-discrimination in general conditions of service providers based on the EU Services Directive Handbook, UK Government

See Also