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Characteristics of the Freedom of Establishment and the Freedom of Services

Commission Regulation 123/2007 (fictitious) confines the use of the word ‘chocolate’ to products derived from cocoa which do not contain vegetable fat, and which are made in Belgium. ‘Yum Yum’ is a long-established UK company, which has always used vegetable fat in products it markets as ‘chocolate’. The director of ‘Yum Yum’ writes to the European Commission protesting that the regulation unfairly favors Belgium chocolates for no apparent reason. In an email addressed to ‘Yum Yum’ received on the 15th October 2008, the Commission replies that a/ a recent scientific study concluded that vegetable fat combined with coca is detrimental to the health and b/ Belgium has traditionally been the homeland of chocolates and allowing other countries to claim the term ‘chocolate’ for their products would be discriminatory. The Commission concludes that the term ‘chocolate’ has to be withdrawn from ‘Yum Yum’ advertising material.‘I Love Chocolate’, another UK company that produces chocolates with vegetable oil, notes the letter sent to ‘Yum Yum’. The company also objects to withdraw the term ‘chocolate’ from any of its products.The freedom of establishment and the freedom of services can be characterized as the most important ‘freedoms’ within the European Union, as a Union of rights and obligations of its members. These two freedoms are protected by the provisions of the articles 43 (freedom of establishment) and 49 (freedom of services). The main difference between these two freedoms is the fact that in the case of the freedom of services, the establishment in a member stated is not required – services can be provided just temporarily – there is no need for permanent establishment. on the contrary, the freedom of establishment is based on the fact that the person/ firm under discussion is permanently established in a specific member state participating in one or more commercial activities.

Characteristics of the Freedom of Establishment and the Freedom of Services