Intro & History of the EU

Public International Law (PIL)

The law that governs the relationships between states & international organizations that
consists of treaties.
●​ National/Domestic - Applies within one state to individuals
●​ PIL/International - Applies to states (and other subjects)

The creation of PIL consists of:

1.​ No Centralized legislator - No Courts with central jurisdictions
2.​ Treaties - “Contracts” between states
3.​ Customary Law - Created through behaviour not written in binding manner

International Organizations
Based on treaties (created by states) & the states are free to decide what to confer (grant) upon
them. IO’s have:
●​ No Sovereignty Rights
●​ Forea for discussions
●​ Propose treaties which states have to ratify

The EU
Has features of an IO as it is created by states and based on treaties BUT it can create law’s
and is its own legal order
●​ No Territory & People
●​ No Competence-Competence (cannot decide its own powers - the MS control and define
it through EU Treaties) ~ Defined through the Treaty of Lisbon (2009)
!! The EU is characterised as a SUPRANATIONAL ORGANIZATION !!
●​ Supremacy & Binding Law
●​ Independent Institutions - No need for approval from individual member states
●​ Direct Effect - EU Law can give rights directly to individuals

EU Law
EU Law is NOT PIL nor Domestic Law, it is characterised as SUI GENERIS (law of its own
kind)

Key Aspects of the EU's Sui Generis Legal Order:

●​ Autonomy – EU law is independent from national and international legal systems.
●​ Direct Effect – Individuals and companies can rely on EU law in national courts.
●​ Supremacy – EU law takes precedence over conflicting national laws.
●​ Binding Institutions – The European Court of Justice (ECJ) ensures uniform
interpretation and enforcement of EU law

It is not necessary for Member States to implement EU Treaties as they automatically apply to
MS without needing additional national legislation
Historical Overview
1.​ 1950 - European Coal & Steel Community established to make interdependencies
2.​ 1957 - Treaty of Rome creates the EEC (European Economic Community).
3.​ 1986 – Single European Act sets up the single market.
4.​ 1992 – Maastricht Treaty forms the EU and introduces the “Three Pillars”
a.​ European Communities
b.​ Common Foreign & Security Policy
c.​ Justice & Home Affairs
5.​ 2002 – Euro currency officially introduced.
6.​ 2009 – Treaty of Lisbon reforms EU institutions and abolishes the “Three Pillars”

EU Institutions (Art 13 TEU)

The EU institutions are responsible for decision-making, implementing policies, and ensuring
the functioning of the EU:

European Parliament – Represents Citizens and is a directly elected body with legislative,
supervisory, and budgetary responsibilities.
●​ Legislative - Passes EU law alongside the Council of the EU based on the proposal from
the European Commission
●​ Budgetary - Established EU Budget together with the Council
●​ Supervisory - Democratic scrutiny of all EU institutions
●​ MEPs are allocated among MS based on the share of EU Population

Council of the European Union – Represents Member States' governments; shares legislative
power with Parliament (members are the ministers)
●​ Negotiates & Adopts EU laws together with the EP based on the proposal from the
European Commission
●​ Develops EU Foreign & Security Policy

European Commission – Proposes laws, enforces EU rules (ensuring EU law is properly

applied in all MS), and manages the budget (Members are one commissioner from each MS)
●​ Represents the EU internationally (negotiates international agreements for the EU)

European Council – Sets the EU's overall political direction and priorities ~ represents the
highest level of political cooperation between EU countries (members are heads of state)
●​ DOES NOT PASS LAWS!!
●​ Deals with complex and sensitive issues that cannot be resolved at a lower level

Court of Justice of the European Union (CJEU) – Ensures EU law is interpreted and applied
consistently across Member States.

European Central Bank (ECB) – Manages the euro and EU monetary policy.
European Court of Auditors – Audits EU finances to ensure proper use of funds
Council of Europe – Responsible for Human Rights (nothing to do with EU institutions)
EU History of the Single Market & Four Freedoms
The Single Market is also known as the internal or common market. This also put forth the “4
Freedoms”
1.​ Free Movement of Goods - No tariffs or restrictions on trade between Member States.
2.​ Free Movement of Capital - Free movement of money and investment across borders.
3.​ Free Movement of Services - Businesses can offer services across the EU without
restrictions.
4.​ Free movement of People - Citizens can live, work, and travel freely within EU Member
States.

The Treaty of Rome (1957) established the EEC and laid the foundation for the four freedoms.
The White Paper (1985) proposed by the European Commission outlined measures to remove
barriers to the Four Freedoms and to create a Single European Market
The Single European Act (1986) officially committed EU Member states to the single market,
making the four freedoms legally binding
The European Economic Area (1994) links MS of the EU and EFTA into an internal market

Organizational Law, Legislation & Judicial Protection in the EU

Legislative Procedure
There are 3 main institutions involved in EU legislation (process of creating law):
1.​ Parliament - Represents Citizens & Passes Law (with the Council of the EU)
2.​ Council of the EU - Represents Member States & Shares legislative power with EP
3.​ European Commission - Proposes EU Law & Policies

These three are known as the TRILOGUE - the informal negotiation process
Proposal -> 1st Reading in EP & Council -> 2nd + 3rd Reading -> Conciliation or Adoption

DIFFERENT Legislative Procedure

These are alternative processes where either the European Parliament or the Council of the
EU plays a more dominant role in adopting laws eg. Consultation or Consent Procedure

ORDINARY Legislative Procedure

The main decision-making process in the EU, where the European Commission proposes
laws, and both the European Parliament and the Council of the European Union must
agree on the law.

Types of EU Law
1.​ Primary Law - The foundational treaties of the EU (treaties and the charter)
2.​ Secondary Law - Laws created by EU Institutions (Trilogue) based on primary law
a.​ Regulations - Binding all MS and directly applicable without need national
implementation
b.​ Directives - Set Goals for MS to achieve but allowing flexibility on how they are
implemented (condition: needs to be clear what rights and against whom)
 c.​ Decisions - Binding on those to whom they are addressed (MS or Individuals)
d.​ Recommendations & Opinions - Non-Binding
3.​ Case Law - Legal interpretations and rulings made by the Court of Justice of the EU
(CJEU), which shapes the application and interpretation of EU law.

!! Laws pass through the legislative process which are secondary law, but they must always
comply with the rules outlined in the primary law (the treaties). !!

Regulations vs. Directives

The purpose of Regulations - To create uniform laws across the EU that apply the same way
in all countries eg. GDPR ~ making everything the same
●​ Directly Applicable - The law automatically becomes part of the national law (no need for
further action to implement it)
The purpose of Directives - To harmonize laws across the EU while allowing flexibility in
implementation. Eg. EU Working Time ~ giving states the ability to change
●​ Not Directly Applicable - Requires national implementation

Minimum & Maximum Harmonization - Directives

Minimum - The EU sets a minimum standard that all Member States must meet.
Maximum - The EU sets a maximum standard, and Member States cannot go beyond these
rules

Direct Effect of Directive

Under certain conditions, individuals can rely on and enforce provisions of an EU directive in
their national courts

CJEU => Directive may be directly applicable if / Conditions for Direct Effect
1.​ Unconditional & Clear - Provisions of the directive must be clear, precise, and not
dependent on any further conditions
2.​ Implementation Deadline has Passed

Vertical Direct Effect means that you can use EU legislation against a member state.
Horizontal Direct Effect means that you can use EU legislation against another individual

!! Only Vertical DE applies in the cases of Directives !!

Principles of EU Law
1.​ Conferral - The EU can only act within the limits of the powers conferred on it by the
Member States in the EU treaties
2.​ Supremacy - EU law takes precedence over national law. If there is a conflict between
EU law and national law, EU law prevails.
3.​ Subsidiarity - The EU should only act when objectives cannot be sufficiently achieved
by Member States alone, and where the EU can add value (Should the EU act?)
 4.​ Proportionality - EU actions should not exceed what is necessary to achieve the
objectives of the treaties ~ should act where appropriate (How far should the EU act?)

Legal Protection
Court of Justice of the European Union (CJEU) – Ensures EU law is interpreted and applied
consistently across Member States ~ All courts and authorities of MS have to apply EU Law
●​ Uniform Interpretation & Application
○​ Infringement Proceedings - Occurs when the Commission believes MS has failed
to comply with EU Law
○​ Annulment Proceedings - Occurs when a party requests the CJEU to annul or
cancel an EU law
●​ Has Two Courts: Justice & General Court
○​ Justice - Handles the interpretation and application of EU Law (Advocates)
○​ General - Deals with cases AGAINST EU INSTITUTION (NOT MS)

Preliminary rulings refer to a process where ONLY national courts of EU Member States ask
the CJEU for clarification on the interpretation or validity of EU law when it is uncertain or in
dispute in a case before them.

Single Market I

The Single Market is also known as the internal or common market. The idea comes from ART
3(3) of the TEU. Established the basis of the 4 Freedoms:
1.​ Free Movement of Goods - No tariffs or restrictions on trade between Member States.
2.​ Free Movement of Capital - Businesses can offer services across the EU without
restrictions.
3.​ Free Movement of Services - Free movement of money and investment across
borders.
4.​ Free movement of People - Citizens can live, work, and travel freely within EU Member
States.

The main aim is to enable free trade between MS and not to allow unrestricted trade.

Direct & Indirect Discrimination - PROHIBITED

1.​ Direct - Treatment based on Nationality or any other related factor ~ only based on
explicitly mentioned grounds
2.​ Indirect - Treatment that seems “fair” but still hurts a particular group more than others
eg. CASE Groener ~ Ireland Case & Gaelic Language

Discrimination can be justified under EU law in certain cases, but only if the treatment:
1.​ Legitimate Aim - The reason must be valid (mentioned in a treaty)
2.​ Necessary - Must be needed to achieve the aim
3.​ Proportional - Harm caused by the discrimination is reasonable compared to the benefit
eg. Protection
Measures Having Equivalent Effect (MEE’s)
Actions or rules taken by MS that are not outright discriminatory but still restrict trade or
movement within the EU ~ non-discriminatory laws or rules that, in practice, still make it more
difficult for businesses or individuals from other EU countries to participate in the market.

Measures Having Equivalent Effect (MEEs) can be justified in certain cases:

1.​ Legitimate Public Interest - The MEE’s have an aim to protect public health, safety etc.
2.​ Proportionality
3.​ Non-Discriminatory - Should not discriminate MS’s but apply equality to domestic and
foreign goods & services

Selling Arrangements
Selling arrangements refer to national rules that govern how products are marketed or sold in
a particular country, rather than rules about the product itself

The CJEU has generally ruled that selling arrangements are allowed as long as they are
non-discriminatory and apply equally to all products, whether foreign or domestic.

However, if these arrangements restrict trade between EU countries, they need to be justified
by a legitimate public interest (like protecting public health, safety, or consumer protection),
and must be proportional (not more restrictive than necessary).

Free Movement of Capital and Payments

Free Movement of Capital - Businesses can offer services across the EU without restrictions
●​ Objective: Remove all restrictions on capital movements between MS and third countries
with exceptions in certain circumstances
●​ Promote the use of the EURO

Personal Scope - Can be invoked by both natural and legal persons irrespective of their
nationality ~ Who benefits?
Material Scope - All restrictions on capital movements between MS AND between MS & third
countries ~ What is covered?
●​ Investments, Bank Transfers, Purchase of Real Estate, Securities & instruments etc.

Prohibition of Discrimination - EU law forbids direct or indirect discrimination based on

nationality
●​ A MS cannot impose higher taxes or other restrictions on foreign investors compared to
domestic investors
Prohibition of Restrictions - Non-discriminatory rules that restrict capital movements are
prohibited

Justifications exist for public policy, security, or taxation reasons, but they must be
proportionate and justified !!
 ●​ Restrictions can be justified if they are explicitly recognized by the treating or other
overriding grounds in public interest or “social objectives”

GDPR & Scope of Protection

General Data Protection Regulation (GDPR) - The protection of natural persons with regard to
the processing of personal data and on the free movement of such data asp. Art8(1) of the
Charter of Fundamental Rights of the EU

Scope of Protection: The protection of personal data

●​ Any information relating to an identified or identifiable natural person (data subject)
directly or indirectly by reference to an identifier eg. Name, ID Number, Location, Genetic
etc.
○​ Noreference to a natural person ≠ GDPR‘s scope of application
■​ Anonymised data ≠ GDPR
■​ Personal data = GDPR
■​ Special Categories = GDPR eg. Racial/Ethnicity, Health, Religion etc.
■​ Pseudonymised data = GDPR
●​ Material Scope - What does GDPR cover?
○​ Processing of Personal Data
●​ Territorial Scope - Where does GDPR apply?
○​ Anything related to EU of processing personal data
■​ Including non-EU parties if they monitor or offer goods/services to the EU
GDPR Principles - Processing of Personal Data
1.​ Lawfulness, Fairness & Transparency
2.​ Integrity & Confidentiality
3.​ Storage Limitation - Storage period must be chosen appropriately
4.​ Accuracy - Audit measures implemented
5.​ Data Minimisation - Adequate, relevant and limited to what is necessary to the purpose
6.​ Purpose Limitation - Purpose is determined before processing starts

Roles in the GDPR

Data Subject - The individual whose personal data is processed
Controller - The entity that decides the purpose (why) and the means on how personal data is
processed eg. Payroll Admin, Bank Payments, Accountants etc.
●​ Can be defined by law
○​ Essential Means: Linked to the purpose of processing of data
○​ Non-Essential Means: Linked to the aspects of implementation
Processor - Processes data on behalf of the controller eg. Cloud Storage Provider
●​ Processors are separate entities in relation to the controller
●​ Processors cannot carry out processing for its own purpose eg. Call Center

Joint Controllers
When two or more controllers jointly decide the purposes and means of processing personal
data. This is realised by:
1.​ Common Decision - Both agree on the purpose and means of processing
2.​ Converging Decision - Each controller has its own purpose but their processing is
linked and combined

Processing of Personal Data

Generally speaking, the processing of personal data is prohibited BUT allowed if a lawful
basis can be found and the principles relating to processing are adhered to.
●​ Controller is responsible for & has to demonstrate compliance to accountability

Privacy by Design & Privacy by Default

These principles ensure that data protection is built into systems and processes from the start.
1.​ By Design - Organizations must integrate data protection measures into their systems
from the beginning
2.​ By Default - Organizations must only collect and process data that is necessary to
achieve their specific purpose

Lawful/Legal Basis for Processing - Is processing allowed in principle?

Under GDPR, personal data can only be processed if there is a valid legal basis. The six lawful
bases are:
1.​ Consent - Controller must show that consent was freely given, specific, and informed
2.​ Contract - Necessary for business performance eg. Delivery of Goods to an address
3.​ Legal Obligation - Required by law
4.​ Vital Interests - Necessary for security and protection
5.​ Public Task - Necessary for public interest or official authority
6.​ Legitimate Interests - Necessary for legitimate business unless it overrides individual
rights

Organizations must justify their processing under one of these bases and inform data subjects
accordingly

International Data Transfer - Legitimate Transfer of Personal Data to Third Countries

Legitimate Transfer of Personal Data - Personal data is shared across borders or between
entities in a lawful and GDPR-compliant manner

Transfer of data to third parties (outside EU) is permitted IF the third country meets GDPR
Requirements as per “ADEQUACY DECISION”
●​ The destination country is approved by the EU as having strong data protection laws

Data Subjects’ Rights

The GDPR grants individuals (data subjects) several rights to control their personal data. These
rights must be respected by data controllers and processors.
 1.​ Information-Rights - Controller provides transparent information and communication to
the data subjects
2.​ Access - Data subjects can request a copy of their personal data that is being
processed by the controller
3.​ Rectification - Data Subjects can ask for incorrect or incomplete data to be corrected
4.​ Erasure - Data Subjects can request deletion of their data under certain conditions (e.g.,
data is no longer needed or consent is withdrawn).
5.​ Restriction of Processing - Data Subjects can request limited processing of their data
(e.g., while accuracy is being verified).
6.​ Data Portability - Data Subjects can request their data in a structured, commonly used
format to transfer it to another service provider.
7.​ Object - Data Subjects can object to data processing based on legitimate interests or
direct marketing.
8.​ Notification Obligation - The controller is obliged to communicate any rectification,
erasure of personal data, restriction of processing, and any recipients of such data.

!! Deadline for a response is within one-month with a 2 month extension allowed !!

Selected Obligations pursuant to GDPR

1.​ Maintaining records of processing activities - Controllers and processors
a.​ EXEMPTIONS:
i.​ Controllers/Processors with less than 250 employees
ii.​ Processing is likely to result in the risk of rights
iii.​ Processing is NOT occasional
b.​ Controllers & Processors standards
i.​ Name & Contact Details of the controller
ii.​ Purpose of processing activity
iii.​ Deadline for deletion
iv.​ Categorisation of data subjects
2.​ Designating a Data Protection Officer
a.​ Neither a Controller or Processor
i.​ Responsible for ensuring GDPR within an organization
ii.​ Monitoring data protection practicing but not deciding how or why data is
processed (compliance & strategies)
iii.​ Advising controller’s and Processor’s regarding legislations
3.​ Data Breach Notification - Notification needed within 72 hours

Data Protection Impact Assessment (DPIA)

DPIA must be carried out in certain cases by the controller.
DPIA is used to identify and mitigate risks to the rights and freedoms of natural persons
that arise from the processing of personal data
 Free Movement of Services

Businesses can offer services across the EU without restrictions or discrimination.

Gambling and Betting

Highly regulated in all MS due to concerns on fraud, addiction and crime. Different licensing
systems exist including concessions (permits), licenses and state monopolies.
●​ Many gambling companies establish themselves in one MS (eg. Malta due to favourable
regulations) but then offer services to other MS over the internet.
○​ This raises legal disputes

Some MS have created state-run gambling monopolies that limit markes access - these
rules must instinctively applicable (apply equal to domestic and foreign companies)
JUSTIFICATIONS FOR RESTRICTIONS:
●​ Consumer protection
●​ Crime & Fraud Prevention
●​ Public Morals

Gambling and Betting Advertising

Advertising Gambling by Monopolies - Proportionality Issue
●​ If a state monopoly advertises aggressively, it contradicts the justification of “limiting
gambling”
●​ If ads encourage gambling, the restriction is no longer proportionate
CJEU Position on Advertising
●​ Controlled Expansion - Legal gambling is accessible but not excessive
●​ Preventing Secret Gambling - Encourages gamblers to use regulated ones
●​ Consistency Required - A state monopoly cannot justify its existence by

The CJEU tolerates restrictions like monopolies but ensures they are proportionate and
consistent. If a monopoly promotes gambling too much, it may lose its justification and violate
EU law. The CJEU allows advertising if it supports protection and responsible gambling, but
excessive promotion could be unlawful under the freedom to provide services.

Freedom of Establishment

Businesses can establish themselves in any EU Member State (MS) under this freedom
Benefit / Purpose:
●​ Limited Liability
●​ Easier to transfer/sell - Ownership and shares can be easily exchanged
Requirements
●​ Each MS has different rules and regulations for setting up companies
●​ Some have simple procedures while other have complex requirements
Arguments for Rules
●​ Stricter Rules - Protection of the market & stronger financial stability
 ●​ Lenient Rules: Better for economic development

The “Problems & Challenges” in Freedom of Establishment

1.​ “Optimizing” Company Law ~ Forum Shopping
a.​ Businesses try to take advantage of lenient company laws by registering in one
Member State (MS) but operating mainly in another.
i.​ "Forum Shopping" – choosing the most business-friendly legal system to
reduce costs, taxes, or regulations.
2.​ Stricter MS’ Concerns
a.​ Some MS have strict company laws (e.g., higher capital requirements, more
reporting obligations).
b.​ These states do not want companies to register abroad while actually operating
within their territory, as it can lead to:
i.​ Loss of Tax Revenue
ii.​ Weaker Regulatory Control
iii.​ Unfair Competition with domestic businesses.

Eg. Centros Case - Danish Entrepreneurs set up & registered a company in the UK instead of
Denmark. They only operated in Denmark and thus avoided Danish Capital requirements.
Danish authorities refused to recognize the company as their argument was that they bypassed
stricter national rules. The CJEU ruled that Denmark violated the freedom and that companies
have the right to register in one MS and operate in another, and that “Forum Shopping”” is
allowed as long as the company is legally incorporated.

Seats of a Company - Statutory vs. Administrative Seat

Statutory - Defined in the founding documents (Articles of Incorporation) ~ must be in the state
where the company is incorporated (registration of legal existence)
Administrative - Refers to the actual place of management or real operations of the company.
This is the location where key decisions are made and where the company is practically run.

Statutory seat is a legal formality, while administrative seat reflects the company's true
operational location.

In some countries, only the statutory seat (where the company is legally incorporated) is
important for recognizing the company as valid. The administrative seat (actual place of
management) is not a major factor in determining the company's legal existence. In some
countries, both the statutory seat and the administrative seat must be within the same territory
of that country for the company to be legally valid.

Under EU Law, a Member State cannot prevent foreign companies from operating within its
territory as based on the freedom of establishment. Exceptions exist that are justified by public
interest but they cannot completely block a foreign a company from operating. The same
applies for moving their seat abroad.
 Competition Law

The fundamental objective of EU Competition Law is to ensure the proper functioning of the
internal market.
1.​ General Antitrust Law (Art. 101 & 102 TFEU)
a.​ Anti-competitive agreements (101) ~ decisions and practices that restrict or
distort competition
b.​ Abuse of Dominant Market Position (102) - Exploiting power that harms
competition or consumers eg. Price Manipulation, Refusal to supply, predatory
pricing etc.
2.​ Merger Control
a.​ Regulations of M&As to prevent anti-competitive concentrations of economic
power (approval by Commission is necessary)
3.​ State Aid and Liberalization
a.​ Financial Assistance granted by a Member state to companies or industries that
could distort competition and impact trade. (Registration and Assessment by
Commission necessary)
i.​ Any form of aid is prohibited unless it meets certain conditions
ii.​ Exceptions include: Promotion of economic development, support of
research, environmental protection etc.

Cartels - Regulated in Article 101 TFEU

The cartel ban on Art 101 TFEU refers to the joint conduct of 2 or more companies that will likely
distort competition. The three defining elements include:
1.​ More than one undertaking act together
2.​ Possible effect on trade between MS
3.​ Object or effect is prevention, restriction, or distortion of competition.

Exemptions are permitted but rather limited due to difficulties

●​ Improves the production or distribution of goods
●​ Promotes technical or economic progress
●​ Does not hinder competition excessively

Hard-Core Violations
Directly or indirectly fixing purchase/selling prices & conditions, limiting or controlling production
& markets, sharing markets or sources of supply, etc.

Block Exemptions
Horizontal agreements - Between competitors, like price-fixing or market-sharing.
●​ Regulated more strictly
Vertical agreements - Between companies at different levels of the supply chain, like suppliers
and distributors, that can harm competition).

!! Vertical agreements are considered less intrusive than horizontal agreements !!

Abuse of Dominant Positions (Art. 102)
Deals with single companies disturbing the internal market & free trade. There is no absolute
definition of what a “dominant position” is ~ “enough economic power to inhibit preservation of
effective competition”

!! Holding a dominant position is not illegal, ABUSING IT IS !!

The competent authorities is the Domestic Competition Authorities and the EU Commission

Cross-border Claims Enforcement in the EU - Jurisdiction & Enforcement

Cross-border claims enforcement in the EU refers to the process of resolving legal

disputes between parties from different EU Member States. Jurisdiction determines which
country's courts have the authority to hear a case.

Jurisdiction, Competent Court & Forum

Jurisdiction - Which country should hear the case?
●​ Depends on where the defendant lives, where the contract was signed, where the
problem occurred, contractual agreement (Forum selection clause) etc.

Competent Court - In cross-border legal disputes, it's important to determine which court has
the authority to handle the case (eg. Local or Regional Court).

Forum comes from Latin, meaning "public place" and in a legal context, it refers to the place
or country where a legal case is heard and decided in court. Eg. Austria is the Forum if a case is
heard in Vienna.

Jurisdiction (WHERE) → Forum (EXACT LOCATION) → Competent Court (WHICH)

When a legal issue involves multiple countries, the courts of the forum (the country
where the case is being heard) will:
●​ Apply their own conflict of law rules: These rules determine which country’s laws apply to
the case (e.g., which country's contract law should be used).
●​ Apply their own procedural rules: Different countries may have different procedures for
how a case is handled, such as the way evidence is presented or deadlines for filing
claims.

Special Jurisdiction under Brussels 1 Regulation

In some cases, Jurisdiction is not limited to the defendant's domicile. The Claimant (person
suing) has a choice of different courts based on certain rules.
1.​ Dispute form Contract or Place of Performance
2.​ Specific Rules for Sales & Service
a.​ For both Sales of Goods and Services - Jurisdiction is in the place where the
goods/services were delivered OR should have been delivered
Regulation vs. Domestic Law
A Regulation generally applies only if the defendant is domiciled (legal residence) in an EU
Member State. If the defendant is not domiciled, then domestic rules (national law of the country
where the case is brought) applies.
●​ EU regulations are relevant for jurisdiction if the defendant is in the EU.
●​ For non-EU defendants, national laws and international treaties govern jurisdiction.
General Rule: The defendant is usually sued in the court of their domicile

In the situation where there are multiple member states involved eg. Spanish Consumer,
German Seller, Contract signed in France. Each of these three member states have jurisdiction
but Germany has primary jurisdiction (assuming they are the defendant). Spain and France
have jurisdiction to hear the case.
●​ Germany is default Jurisdiction based on the defendant's domicile
●​ France has also Jurisdiction because the contract was signed there (or if the obligation
was performed there)
●​ Spain also has Jurisdiction due to EU consumer protection law

Lis Pendens - Two or more courts seizing

If two or more courts are dealing with the same case, the first court seized (first to receive
the case) gets to decide if it has jurisdiction.
●​ Other courts must stop until the first court accepts or rejects jurisdiction.

This creates the “Torpedo Claim” problem where the defendant intentionally files a case to block
the claimant from getting a quick decision. The only exception is if there is a “Choice of Court
Agreement”.

If the court does not have jurisdiction, the defendant must object to avoid being bound by an
incorrect ruling.

Even if a Country does not have Jurisdiction based on the “General” and “Special” rules, the Lis
Pendens means it still gets to decide if it does (even if weak or incorrect).
●​ The court itself must assess whether they have Jurisdiction (properly)
●​ The defendant can challenge the jurisdiction if they believe it to be wrong
●​ Higher Courts can also appeal.

Lis Pendens only gives the first court the priority to decide if they have Jurisdiction to avoid
parallel cases.

Enforcement
When a court in one EU Member State (MS) issues a judgment, it can be directly enforced in
another MS without requiring a special procedure
●​ Directly Enforceable
○​ When a court in one EU Member State (MS) issues a judgment, it can be directly
enforced in another MS without requiring a special procedure
 ●​ Grounds for Refusal
○​ If the judgment violates fundamental principles of the enforcing country (e.g.,
human rights, fair trial).

A French company sues a German company in a French court for unpaid invoices. The French
court rules in favor of the French company and orders the German company to pay €50,000.
●​ Because Germany and France are both in the EU, the judgment is automatically
enforceable in Germany.
●​ The French company can take the judgment directly to German authorities without
needing a German court to review it (no exequatur needed).
●​ The German company can only challenge enforcement in limited cases (e.g., if it was
never informed about the lawsuit and couldn’t defend itself).
○​ THEORETICALLY: If the German Company was not in the EU, Germany can
refuse enforcement if it finds the French Judgement conflicting with German
Legal Principles

Conflicts of Laws - Applicable Law

When a legal dispute involves parties from different Member States (MS), the question arises:
Which country’s law applies?
●​ The EU has introduced harmonized rules in certain cases to avoid conflicts regarding
MS national rules eg. If a French seller and a German buyer disagree over a contract,
should French or German law apply?

The Rome I Regulation (EC 593/2008) is an EU law that harmonizes rules on applicable law
for contracts across Member States.
●​ General rule: The law chosen by the parties in the contract applies.
●​ If no choice was made, the applicable law is determined by specific default rules (e.g.,
the law of the country where the seller is based for sales contracts).

Eg. A Spanish company and a Dutch company sign a contract, but the contract does not specify
which law applies.
●​ Under Rome I, the contract will be governed by the law of the country where the seller is
established (i.e., Spain, if the Spanish company is the seller).

!! APPLICABLE LAW AND JURISDICTION IS DIFFERENT !!

Special jurisdiction rules determine where a case is heard, while Rome I determines
which law (MS Law) applies in that case !!

Rome I Regulation - Rules on Contract Law

The Rome I Regulation sets rules to determine which country’s law applies on contractual
disputes in cross-border cases ~ COVERS CIVIL & COMMERCIAL CONTRACTS!
●​ The court must apply the law determined by Rome I, EVEN if it's not from an EU Country
Party Autonomy & Choice of Law
One of the most important principles in contract law is party autonomy, meaning:
1.​ Parties can choose the law
a.​ Businesses/Individuals can freely decide which country’s law will govern their
contract (even a third country if they wish)
b.​ EXCEPTIONS: Mandatory EU or National Law of the state must apply
i.​ Two EU Companies - Any EU law must Apply
ii.​ Same EU Country - Same EU law must Apply
iii.​ EU & Non EU Country - Any Law Applies
2.​ Overriding Mandatory Rules
a.​ Some laws are so important that they cannot be overridden (this is because
consumers, employees etc. have weaker bargaining power)
3.​ No Law Chosen
a.​ If NO law was chosen, then the law of the seller’s/servicer’s/distributor/renter
habitual residence applies

EU Civil Procedures

Refers to the rules and processes that apply when a civil or commercial legal dispute (like
contracts, debts, or damages) has a cross-border element within the EU. It Covers:
1.​ Court Jurisdiction
2.​ Choice of Law / Law Applicable
3.​ Enforcement

Small Claim Regulation

This is for cross-border civil and commercial cases involving low amounts (under €5,000).
It's meant to be quicker, cheaper, and simpler than normal procedures.
●​ Required to have a statement of claims & defense
●​ Response to Claim to be submitted within 30 Days
●​ Decision by Court within 30 Days

Order of Payment
This is for uncontested monetary claims (e.g. someone owes money and doesn’t dispute it)
●​ Speedy & Efficient Proceeding
●​ Low Cost

EU Contract Law - Multiple Directives

Contract Law is a very broad field consisting of multiple directives to preserve a democratic
image & allow MS flexibility.
General Contract Law: Basic Rules that apply to most contracts (Contract Formation,
Termination, Consequences of mistakes, fraud, illegality etc.)
Certain Types of Contracts: Specific Rules apply depending on the type of contract (Sales
Agreements, Service Agreements ~ Buying & Selling Contracts) / Rules are usually
non-mandatory

Freedom of Contract
People and businesses are generally free to make their own deals and decide the terms - key
part of a Liberal Economy

State Intervention occurs when it is absolutely necessary eg. Employment Law, Consumer
Protection, Tenancy Law etc. - weaker party needs protection

Commercial Agents Law

Refers to the legal rules governing the relationship between a commercial agent and a
principal (usually a company). A commercial agent is someone (a person or a business) who
acts on behalf of another company or individual with the tasks to facilitate trade,
negotiating sales, and concluding contracts (if required).

Self Employed Commercial Agents

●​ Own Business Structure
●​ Allowed to delegate work
●​ Bears Economic Risk

Commercial Agents Directive (Protecting the weaker party)

Ensuring minimum protections for agents, such as:
●​ Right to commission (remuneration eg. % of a transaction) ~ only during term of contract
●​ Notice period for termination
●​ Compensation or indemnity when the contract ends

Consumer Protection Law

A collection of directives used to protect consumers across member states - PROTECT THE
WEAKER PARTY!!!
Scope of Protection - Only contracts between Consumer & Professional is covered
1.​ Consumer - Natural person outside of the trade/business
2.​ Professional/Trader - Someone acting within their business context

As this is a directive, member states can broaden where applicable in their national laws.

Unfair Contract Terms Directive

Protect consumers from unfair, one-sided terms that could take advantage of them when
signing contracts with businesses. The goal is to ensure fairness and transparency in
contracts - ONLY FOR B2C WITH MINIMUM HARMONIZATION !!
Aims of the Directive
1.​ Transparency - Clear & Understandable - no hidden clauses/tricky jargon etc.
2.​ Invalidity of Certain Terms - Some contract terms are automatically considered unfair
& invalid
3.​ Collective Enforcement - Consumer Org. and Authorities can take collective action

Transparency - Clear & Understandable (Consumer Protection)

1.​ No Writing Required - Contracts do not need to be written (if it is - must be
transparent!) ~ Contracts in general need to be plain and intelligible
a.​ CJEU - Set a standard on “Clear and understandable” for the “average person”
2.​ Contra Proferentem - Anything unclear is therefore in favor of the consumer
a.​ Consumer Friendly Interpretation always prevails!

Unfair Terms
In B2C, contracts are not binding on the consumer if the contract is considered unfair.
●​ HOWEVER, some clauses can be applicable if they are not unfair! (Vice-Versa)
●​ ONLY THE CONSUMER can rely on the invalidity of unfair terms.

Unfair Terms - Exceptions!!

1.​ Negotiated Terms - ONLY NON NEGOTIATED TERMS CAN BE UNFAIR ~ negotiated
ones are ok because the consumer had a choice
2.​ Main Subject Of Matter - Core purpose of the agreement eg. Sale of Goods
a.​ PRICE DOES NOT FALL under this directive
b.​ PAYMENT & DELIVERY CONDITIONS fall under this directive

Collective Enforcement
Associations (ie. Consumer Rights Organizations) can bring a case against a company for
Transparency or Unfair Terms even if the consumer did not file a complaint
●​ This can happen if the consumer did not even know about Transparency or Unfair Terms
○​ It is uncommon for consumers to make rights under this directive
●​ This ensures businesses cannot continue using unfair contract terms without
consequences

Trademark Law

Trademarks play a crucial role both legally and economically for businesses. They are
considered valuable intellectual property assets that provide legal protection
Relevance of Trademarks
1.​ Protection
a.​ Domestic - Trademarks are primarily protected under national law (MS) with its
own legal framework, registration procedure, use, enforcement etc.
b.​ International - Facilitates trademark protection and registration to multiple
countries
2.​ Relevance of the EU
 a.​ Different legal & regulatory rules in each MS ~ small attempt for harmonization
Trademark - Special signs that are legally registered or established by use as representing a
company or product.
●​ YES: Numbers, letters, words, signs, graphics, sounds etc.
●​ NO: General Words & Common Terms

Trademark Law - Institutions

1.​ Domestic: National Legislation
a.​ Each country/state has its own trademark legislation ie. Registration, definition
etc.
2.​ EU: Harmonization
a.​ Trade Mark Directive - Harmonize MS laws to create a consistent framework
i.​ EUTM - Register a trademark that guarantees overall EU Protection
ii.​ EUIPO - Administering the EUTM System ~ registration, disputes etc.
3.​ International:
a.​ A global trademark protection
i.​ WIPO - Specialized agent of the UN for international registration of
trademarks

Use of Trademarks - Practical Issues

Trademark rights exist as of date of registration in the trademark register
●​ Protection of trademarks ends 10 years after the date of application with renewal of
protection for another 10 years possible (payment fee).

There is also an Obligation to use the trademark imposed on the owner. IF the trademark
is not used for 5 years, an interested party can seek revocation.

Registration of Trademarks
Almost anything can be registered as a trademark BUT there needs to be a distinctive
labelling function (recognition & indication of origin)

Trademark Rights
1.​ Right of Exclusion - Allows the owner to prevent others from using the same or similar
sign.
a.​ Dimension 1: Prohibition of using identical signs in connection to the good
without permission eg. Cannot use Nike to sell a product
b.​ Dimension 2: Prohibition of using similar/identical signs in connection to
similar/identical goods eg. Cannot use Nikey as a substitute for Nike
c.​ Extension of Protection: For well-known trademarks, extension can go beyond
the product/service
d.​ Unfair Advantage - Capitalize on the reputation for own benefit
2.​ Principle of Priority - Trademark rights are only obtained upon registration with the
respective authority, furthermore, there is FIRST COME FIRST SERVE!!
a.​ Trademark rights can be enforced always by the first
 3.​ Principle of Exhaustion - Relates to the right of exclusion and how it applies when
goods bearing a trademark are sold.
a.​ Control over Resale ~ prohibition of the resale of third parties
b.​ Exhaustion of Trademark Rights - Granted authority of selling their goods to a
third party, the rights have been exhausted (cannot be prevented anymore)

Unfair Competition Law

Free competition as the foundation of a functioning market economy. There needs to be

protection against unfair competition to prevent any harm to the economy and market. The two
areas of law is Unfair Competition Law & EU Competition Law

!! Unfair Competition Law ≠ EU Competition Law !!

Unfair Competition Law: Focuses on protecting businesses and consumers from

deceptive/dishonest or unethical business practices that harm free competition
EU Competition Law: Focused on preventing anti-competitive behavior that could distort
the market

The problems of Unfair Competition Law are:

1.​ Greenwashing - Deception of being environmentally friendly
2.​ Comparative Advertising - Direct comparison to competition in advertisements (usually
with the goal of being misleading or damaging the competitor)
a.​ PERMITTED IF: Serves the consumer’s best interests by creating fiercer
competition and greater transparency

Greenwashing
False, misleading, overstated, or unsubstantiated environmental advertising. This is naturally
prohibited in most jurisdictions (consumer protection & advertising standards)
●​ The EU considers this as a threat to a green economy as it misleads market actors
and real green businesses from benefitting

EU ROLE: Unfair Commercial Practices Directive

Protects consumers from misleading claims - Containing false information is therefore untruthful
European Green Deal: Promotes sustainable growth and sets standards for environmental
claims ~ climate neutrality by 2050
Green Claims Directive: Specifically targets the practice of greenwashing
●​ Preventing unclear & unsubstantiated environmental claims
●​ Removing misleading labels
●​ Independent third-party assessments for companies
●​ Enables consumers to make informed choices based on reliable information
Perfume Clause - Provision of Consumer Protection Law
It addresses the misleading advertising or misleading labeling related to perfume
products.
●​ Prohibits competitors from advertising an imitation or replica of an original
○​ Issue only arises if there is an imitation or legit alternative to an expensive option.

Copyright Law

Copyright: Type of intellectual property right ~ gives exclusive rights over original works
(control on how it is used, copied, distributed etc.)
●​ Scope / Categories of Work
○​ Artistic & Cultural Works eg. Literature, Music, Art, Film
○​ Technological & Digital Works eg. Computer Programs, Databases
●​ The word “work” is a “peculiar intellectual creation”
○​ Comes from human creativity (not randomness or AI)
○​ Shows originality & individuality
●​ Characteristics
○​ Peculiar (Individuality) - Reflection of personality and creative abilities
○​ Intellectual - Product of human activity
○​ Creation - The actual act of creating & it being noticed

Copyright vs Trademark
Copyright - Protects original creative works with control on how the work is used
●​ Registration: NONE (automatic) ~ upon the creation
●​ Owner: Only natural persons (not legal persons)
●​ Duration: Life + 70 Years
Trademark - Brand Identifier
●​ Registration: Required with respective authority eg.
●​ Owner: Natural AND Legal Persons
●​ Duration: 10 Years with renewals possible

Legal Bases of Copyright

1.​ National Level - Covers basic rules for copyright protection in member states
2.​ EU Level - No Single European Copyright code but multiple directives for harmonization
a.​ Directive on legal protection of Technological & Digital Works
3.​ International Level
a.​ Berne Convention: Core International Treaty ensuring copyright across countries
i.​ Protection of works and rights of the creators
ii.​ 3 Principles: National Protection / Automatic Protection / Independence
b.​ Universal Copyright Convention: Alternative to Berne
c.​ Rome Convention
d.​ WIPO Copyright Treaty: Modernizes rights in the digital environment
i.​ Economic Rights are granted to creators
Copyright as a Personal Right
Certain rights arising out of creator status can only be held by the creator ie. exclusive rights
1.​ Right to make the work publicly accessible
a.​ Only the author/creator can decide IF and WHEN the work is shared publicly
2.​ Right to be recognised as the creator
3.​ Right to designate authorship
a.​ Whether the work should carry a name
4.​ Prohibition of alterations / modifications

Copyright for Software ~ Work of Literature

This applies to all forms of expression such as machine code, material of development, and the
program itself.
REQUIREMENTS:
1.​ Must be Expressed (Originality) - It actually exists, not just an idea (prevents people
from “blocking” ideas)
2.​ Own Intellectual Creation - Basic or Routine Coding is not allowed, it needs to be
“complex”

Software Licensing ~ License (rights of use)

General Rule: The creator holds exclusive rights to their software
Special Rule: These rights can be transferred or granted to third parties

There are TWO TYPES OF LICENSES: (1) Commercial Use (2) Non-Commercial Use

Typical “Rights of Use” tend to be:

1.​ Reproduction - Copying or Installing the software
2.​ Distribution - Allowed to be passed or sold
3.​ Performance - Running/Displaying the software publicly
4.​ Broadcast - Transmitting it via. Networks

In a License Agreement, the contents describe the:

1.​ Parties
2.​ Duration of the Term
3.​ Rights of Use
4.​ Remuneration / Compensation
There was 9 open questions but 3 of them had more subquestions
30 pts,

Ludwig last time was on Data Protection.

Michael will have the majority of the questions

What is the difference between the EU and the state

= No territory and people only Member States

The EU evolved from purely economic to a political one by starting off as a European Steel &
Coal Community at the end of WW2. Over the years, it further evolved to an economic union put
also broadened its views by discussing and adding policy areas outside of the economy such as
justice and foreign affair matters. The lisbon treaty then reformed the EU institutions which
focuses on a wide array of aspects.

If a MS does not implement a directive properly the EU commission will claim violation against
the treaty and the CJEU determines if there is a violation.

Freedom of movement is only based on states not companies - this only applies if there is a
cross border element