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Súdny dvor Európskej únie·8.4.2003

C-71/02

ECLI:EU:C:2003:208

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Súdny dvor Európskej únie
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62002CC0071

OPINION OF MR ALBER — CASE C-71/02

OPINION OF ADVOCATE GENERAL ALBER delivered on 8 April 2003 1

I — Introduction I I— Legal framework

A — Council Directive 84/450/EEC of 10 September 1984 concerning misleading and comparative advertising 2 3

2. Article 1

'The purpose of this directive is to protect consumers, persons carrying on a trade or 1. This reference for a preliminary ruling business or practising a craft or profession concerns the compatibility of a national and the interests of the public in general prohibition on advertising with the provi- against misleading advertising and the sions of the Treaty regarding the free unfair consequences thereof and to lay movement of goods and, if appropriate, down the conditions under which compara- the freedom to provide services. Under tive advertising is permitted.' 4 Austrian law, advertisements stating that the goods offered for sale come from an insolvency estate are prohibited where, at the time of the advertisement, the goods no 2 — Title as amended by Directive 97/55/EC of the European Parliament and of the Council of 6 October 1997 amending longer form part of the insolvency estate. Directive 84/450/EEC concerning misleading advertising so as to include comparative advertising (hereinafter 'Directive 97/55'), OJ 1997 L 290, p. 18. 3 — OJ 1984 L 250, p. 17. 4 — Text as amended by Directive 97/55/EC (OJ 1997 L 290, p. 1 — Original language: German. 18).

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3. Article 2(2) (a) the characteristics of goods or services, such as their availability, nature, execution, composition, method and date of manufacture or provision, fitness for purpose, uses, quantity, specification, geographical or commer- cial origin or the results to be expected 'For the purposes of this directive: from their use, or the results and material features of tests or checks carried out on the goods or services;

...'

2. "misleading advertising" means any advertising which in any way, includ- ing its presentation, deceives or is likely 5. Article 7 to deceive the persons to whom it is addressed or whom it reaches and which, by reason of its deceptive nature, is likely to affect their eco- nomic behaviour or which, for those reasons, injures or is likely to injure a competitor...' '1. This directive shall not preclude Mem- ber States from retaining or adopting provisions with a view to ensuring more extensive protection, with regard to mis- leading advertising, for consumers, persons carrying on a trade, business, craft or profession, and the general public. 4. Article 3

...' 5 'In determining whether advertising is mis- leading, account shall be taken of all its features, and in particular of any informa- tion it contains concerning: 5 — Text as amended by Directive 97/55.

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B — The Austrian Bundesgesetz gegen den 7. Paragraph 30(1) unlauteren Wettbewerb (Law on unfair competition; hereinafter 'UWG') 6

'Prohibition on references to an insolvency estate in the context of the sale of goods

6. Paragraph 2(1)

Public announcements or notices intended for a large audience which advertise the sale of goods originating from, but longer forming part of, an insolvency estate shall not make reference to the fact that the 'Misleading acts goods advertised come from an insolvency estate.'

Persons who, in the course of trade and for III— Facts the purposes of competition, provide poten- tially misleading information on business matters, in particular as regards the nature, origin, production method or pricing of particular goods or services or of the entire range on offer, or as regards price lists, the 8. The parties to the main proceedings are method of procurement or source of supply engaged in the purchase and sale of assets of goods, awards won, the reason for or resulting from insolvency proceedings. Both purpose of the sale or the quantity of stock, parties were involved in the sale of the may be the subject of an application for an moveable assets of a construction company injunction ordering them to cease and, which had been compulsorily wound up. where they knew or must have known that On 26 March 2001, the defendant in the the information was potentially misleading, main proceedings (hereinafter 'Troostwijk') an action for damages.' acquired, with the authorisation of the insolvency court, machines, vehicles and construction materials belonging to the insolvency debtor. Those assets from the 6 — BGBl. No 448/1984, most recently amended by BGBl. I No 136/2001. insolvency estate were to be sold on at an

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auction on 14 May 2001. Troostwijk 9. The auction was advertised by means of advertised that auction as follows: a sales catalogue and a notice in the press. The notice was also posted on the website www.troostwijkauctions.com.

'LARGE INSOLVENCY AUCTION

10. The plaintiff in the main proceedings featuring machines, construction materials (hereinafter 'Karner') obtained from the and a fleet of vehicles Handelsgericht Wien (Commercial Court, Vienna) an interlocutory injunction order- ing Troostwijk to:

from the INSOLVENCY ESTATE of the firm...

MONDAY 14 MAY 2001

(1) refrain immediately, and until such at 10:00... time as the... dispute has been settled definitively, from advertising the sale of goods, in the course of trade and for the purposes of competition, in public announcements or in notices intended TROOSTWIJK Gesellschaft m.b.H. for a large audience which make reference to the fact that the goods advertised come from an insolvency estate, in so far as those goods no longer form part of the insolvency CONSULTANCY — AUCTIONS — estate; and SALES

(2) explain to potential buyers at the public auction on 14 May 2001 that the defendant has acquired the goods from the insolvency administrator and www.troostwijkauctions.com' that the auction is not being held on

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behalf of or on the instructions of the 13. The national court takes the view that insolvency administrator, but on the the prohibition applies irrespective of defendant's own account, and that it is whether, in a particular case, there is a real not therefore an insolvency auction.' danger of the public being misled or whether that danger is ruled out by the provision of appropriate explanatory infor- mation. It considers that the provision also applies where an advertisement states that the advertiser acquired the goods from the insolvency administrator, and even where a considerable difference in price remains despite the profit margin added on by the 11. The Oberlandesgericht Wien (Higher purchaser. In this case also, it submits, Regional Court, Vienna) upheld the injunc- truthful and useful information is withheld tion, which was based on Paragraph 30 of from consumers. the UWG, and dismissed as groundless the appeal against the obligation to provide clarification. Troostwijk brought an extra- ordinary appeal on a point of law against that ruling before the Oberster Gerichtshof (Supreme Court). 14. In contrast, the general prohibition on misleading acts contained in Article 2 of the UWG applies only to information that is in fact capable of misleading. The scope of that provision is thus more restricted than that of Article 30 (1) of the UWG, which is intended to apply to a special set of circumstances. 12. The Oberster Gerichtshof has doubts as to whether the prohibition contained in Paragraph 30(1) of the UWG is compatible with Article 28 EC. It considers that, when adopting that measure, the legislature pro- ceeded on the basis '... that the public prefers to purchase goods sold by an 15. The national court takes the view that insolvency administrator because it assumes the prohibition on advertising contained in it is obtaining the goods at bargain prices, Article 30 of the UWG may have an adverse but that, in the case of an advertisement for effect on trade within the internal market. the sale of goods from an insolvency estate, Where a trader is prevented from stating the public does not distinguish according to truthfully that he is offering goods at a whether the goods are being sold by the particularly low price because he has insolvency administrator or by a third party acquired them from an insolvency admin- who has acquired the goods from the istrator (at an even lower price), the insolvency estate. Third parties who have consumer is denied that information. A acquired goods from an insolvency estate person purchasing goods from an insolv- must be prevented... from exploiting that ency estate must also take into account in tendency on the part of the public'. his advertising the different legislative

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provisions applicable in the various Mem- IV — Submissions of the parties to the ber States of the Community. proceedings

16. Doubts are raised in the order for A — Admissibility of die reference for a reference as to whether Article 30 of the preliminary ruling UWG may be regarded as a selling arrange- ment within the meaning of the judgment in Keck and Mithouard, 7although these are not expanded upon. 18. Kärner contests the admissibility of the reference for a preliminary ruling. It sub- mits that the facts which gave rise to the proceedings do not exhibit a cross-border connection. Article 30 of the UWG con- cerns advertising in Austria. The injunction 17. The Oberster Gerichtshof also doubts at issue in the main proceedings relates to whether the restriction may be justified on an advertisement in Austria for the sale in grounds of consumer protection. It con- Austria of goods acquired from an Austrian siders the rule laid down in Paragraph 30 of insolvency estate. The parties to the main the UWG to be disproportionate, since it proceedings are both established in Austria. also prohibits the dissemination of informa- tion which is useful and not capable of misleading. It has therefore referred the following question to the Court for a preliminary ruling: 19. Only Troostwijk addresses that argu- ment. In its view, the cross-border connec- tion in this case stems from the fact that the advertisement was published on the inter- 'Is Article 28 EC to be interpreted as net. precluding national legislation which, irre- spective of the truthfulness of information, prohibits any reference therein to the fact that the goods come from assets in a bankruptcy, where, in public announce- ments or notifications intended for a large circle of persons, the notice given states that the goods offered for sale are from assets in B — Existence of a restriction on the free a bankruptcy although the goods in ques- movement of goods tion no longer form part of the assets in the bankruptcy?'

20. Troostwijk is of the opinion that 7 — Judgment in Joined CASES C-267/91 and C-268/91 Keck and Article 30 of the UWG restricts the free Mithouard [1993] ECR I-6097, paragraph 16 et s e q . movement of goods. That provision, it

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contends, prohibits the dissemination of Information regarding the origin of a truthful information. For the potential product has to do with the attributes of buyer, that information is not only a matter that product. For that reason, Article 30 of interest, but also an important factor in does not constitute a selling arrangement his decision whether or not to buy. That within the meaning of the judgment in Keck rule therefore represents an obstacle to the and Mithouard. sale of the goods in question.

21. As the advertisement was published on 24. However, Karner, the Austrian Gov- the internet, it is of course not confined to ernment, the Swedish Government and the one Member State. However, only in Commission are of the opinion that the rule Germany is there a provision comparable in Article 30 of the UWG does not serve to with Article 30 of the UWG: Article 6 of the regulate the movement of goods. They take German Gesetz gegen den unlauteren Wett- the view that it constitutes a selling bewerb (Law on unfair competition). arrangement and that Article 28 EC is Troostwijk submits that, in other Member therefore not applicable. States, such as Belgium, France and Swe- den, such an advertisement is, on the other hand, permissible. (The Swedish Govern- ment contests that submission and points to Paragraph 9(i) of the Swedish Marketing Law, which, it says, contains a similar provision.) 25. In their view, the prohibition is not a product-related rule. It lays down no requirements as regards the designation, form, size, weight, composition, presenta- tion, labelling or packaging of the goods. It is, rather, a sales-related rule which governs 22. According to Troostwijk, the fact that how the goods in question are sold. the law differs from one Member State to Advertising is the most effective method of another means that goods originating from sales promotion. In support of their argu- an insolvency estate have to be advertised in ment, they refer to the judgments in different ways. That is very costly and also Hünermund, 8 Leclerc-Siplec, 9DeAgos- to some extent impracticable. It is not tini 10 and Gourmet International, in possible to differentiate in this way on the which the Court classified advertising meas- internet, as that medium does not permit ures as selling arrangements. advertisements to be limited to given regions.

8 —Judgmentin Case C-292/92 Hünermund [1993] ECR I-6787. 9 —Judgmentin Case C-412/93 Leclerc-Siplec [1995] ECR I-179. 10 —Judgment in Joined Cases C-34/95, C-35/95 and C-36/95 23. Troostwijk considers the rule in Arti- De Agostini [1997] ECR I-3843. 11 — Judgment in Case C-405/98 Gourmet International [2001] cle 30 of the UWG to be product-related. ECR I-1795.

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26. In their submission, the prohibition ation of truthful information. Troostwijk contained in Article 30 of the UWG applies refers in this connection to the judgment in to domestic and foreign goods and eco- GB-INNO-BM. 12 To that extent, it sub- nomic operators in the same way. It does mits, Article 30 of the UWG also infringes not restrict access to the market for foreign Directive 84/450. goods. The requirements laid down by case- law with respect to the legality of a selling arrangement are therefore met.

29. On the assumption, as employed by the Court in its case-law, that the average consumer is reasonably well-informed, 27. The Commission points out, further- observant and sensible, protection must be more, that only total prohibitions are provided only against information that is in prohibited by Community law, since they fact capable of misleading him. That func- have the effect of cementing national tion is already performed by Article 2 of the consumer trends. Article 30 of the UWG, UWG. On the other hand, provisions which on the other hand, restricts advertising only guard against a theoretical danger that the in respect of one very specific piece of public will be misled, as Article 30 of the information, namely the fact that the goods UWG does, are not necessary. advertised originate from a liquidation.

30. Finally, Troostwijk also makes refer- ence to the case-law of the European Court of Human Rights, according to which C — Justification for the restriction on Article 10 of the European Convention on account of overriding reasons in the general Human Rights (hereinafter 'ECHR') also interest covers the dissemination of advertise- ments. 13The prohibition on the dissemin- ation of truthful information is not essential to the preservation of democratic order. As a result, Troostwijk submits, the prohibi- tion contained in Article 30 of the UWG 28. Troostwijk is of the opinion that the also infringes Article 10 of the ECHR and is restriction on the free movement of goods therefore contrary to Community law. resulting from Article 30 of the UWG is unjustified. That provision does not fulfil the conditions for the application of Art- 1 2 — Judgment in Case 0 3 6 2 / 8 8 GB-Inno-BM [1990] icle 7(1) of Directive 84/450, as it is not UCR I-667, paragraph 18. necessary on grounds of consumer protec- 13 — Eur. Court H. R., Markt Intern Verlag GmbH and Klaus Beermann judgment or 20 November 1989, Series A no tion in so far as it relates to the dissemin- 165.

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31. Karner, the Austrian Government and 33. The Swedish Government also points the Swedish Government, on the other out that sales held by insolvency adminis- hand, are of the opinion that the prohib- trators are generally subject to special ition laid down in Paragraph 30 of the provisions, such as a requirement that the UWG is justified on grounds of consumer assets in the insolvency estate should be protection and fair trading. The consumer disposed of within a certain period of time. does not distinguish between goods sold by Those rules do not apply to sales held by the insolvency administrator himself and third parties after the assets have been goods acquired from the insolvency estate removed from the estate. It is therefore and then sold on by third parties. Advertis- misleading to describe the resale of such ing goods as coming from an insolvency goods as an 'insolvency auction', an 'insol- estate serves as an enticement to the public. vency sale' or in similar terms. The Swedish In those circumstances, the consumer Government considers that protection is wrongly assumes that a particularly good necessary not only on the ground of bargain may be obtained. Those expect- consumer protection but also in order to ations are disappointed where the goods are ensure fair trading. made more expensive by the profits of intermediaries. The prohibition contained in Article 30 of the UWG is intended to guard against such disappointment.

34. Finally, Karner and the Swedish Gov- ernment can see no alternative measures that would be equally effective and less restrictive. Consequently, they too regard the prohibition as proportionate.

32. The Austrian Government takes the V — Assessment view, furthermore, that the rule in Para- graph 30 of the UWG is consistent with Article 7(1) of Directive 84/450. In the context of answering the question whether advertising is misleading, it contends, account must be taken of all its features, A — Directive 84/450 concerning mislead- and in particular of information concerning ing advertising the origin of the goods, in accordance with Article 3 of that directive. As the directive establishes only a minimum level of protec- tion, the Member States are entitled under Article 7 to introduce stricter measures in 35. By Directive 84/450, the European order to protect consumers. legislature approximated the Member

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States' provisions on misleading advertis- the preamble to the directive and Article 7 ing. According to the findings of the (1) expressly state that the directive does national court, Article 30 of the Austrian not preclude Member States from retaining UWG, the provision at issue in these or adopting provisions with a view to proceedings, is intended to afford protec- ensuring more extensive protection for tion against misleading advertising. The consumers. These may include measures to question therefore arises as to whether the combat a theoretical danger that the public prohibition on advertising contained in will be misled. Directive 84/450 does not Article 30 of the UWG is compatible with therefore preclude the prohibition con- the provisions of that directive. tained in Article 30 of the UWG.

36. The directive does not contain express rules on advertisements for the sale by auction of goods from an insolvency estate. The requirement in Article 3 of the directive that, in determining whether advertising is B — Measures having equivalent effect to a misleading, account must be taken of all its restriction on imports (Article 28 EC) features, and in particular of information concerning the characteristics of the goods, such as their commercial origin, seems to be relevant only to the prohibition contained in Article 2 of the Austrian UWG, which concerns the need to establish that there is a 38. As the prohibition at issue is not the danger that the public will be misled in a subject of a Community harmonisation particular case. Article 30 of the UWG is measure, it is necessary to examine the not covered by Article 3, since it seeks to question, as referred by the national court, combat a theoretical danger that the public whether Articles 28 and 30 EC are to be will be misled. It does not require proof that interpreted as precluding a prohibition such there is a danger that the public will be as that contained in Article 30 of the UWG. misled in a particular case. Irrespective of how the advertisement is actually presented and whether it is in fact capable of misleading, describing the goods in ques- tion as coming from an insolvency estate is prohibited in so far as those goods no longer form part of the insolvency estate at the time when the advertisement is pub- lished. The approximation of legislation effected by Directive 84/450 does not cover 1. Objection of inadmissibility the combating of such theoretical dangers.

37. However, the directive does not prohi- 39. It is necessary to look first of all at the bit such provisions either. The last recital in objection raised by Karner that the subject-

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matter of the main proceedings is of purely 2. The existence of a restriction on the free domestic significance and does not concern movement of goods the movement of goods between the Mem- ber States, and that the reference for a preliminary ruling is therefore inadmissible.

42. Article 28 EC prohibits quantitative restrictions on imports and all measures having equivalent effect. According to the 40. The application of Austrian legislation form of words used in Dassonville, a to an advertisement published in Austria in measure having an effect equivalent to a connection with an auction taking place in quantitative restriction on imports is any Austria for the sale of goods acquired from measure which is capable of hindering, an insolvency estate in Austria by an directly or indirectly, actually or poten- undertaking established in Austria is pri- tially, intra-Community trade. 15 marily a domestic state of affairs. This does not, however, mean that the reference for a preliminary ruling is inadmissible. This dispute is neither a device nor hypothetical within the meaning of the judgment in Foglia v Novello. 14

43. The advertisement at issue in the main proceedings was published on the internet. That enabled potential buyers in other Member States to access the advertisement 41. The question raised by Kärner seeks and, if they so wished, to acquire goods at rather to ascertain whether Article 28 EC is the auction. If such an advertisement is applicable to a situation such as that in the prohibited under Article 30 of the UWG, main proceedings. Karner takes the view trade between Member States is hindered at that Article 30 of the UWG is not incom- least indirectly and potentially as such patible with the rules of the Treaty on the advertising becomes impossible. The ques- free movement of goods because trade tion is whether that is sufficient for the between Member States is not affected. prohibition in Article 28 EC to apply or However, determining the scope of Arti- whether the solution to this problem should cle 28 EC is a question of substantive law. not instead be sought by recourse to the The reference for a preliminary ruling is means available under national constitu- therefore admissible. tional law.

14 —Judgments in Case 244/80 Foglia [1981] ECR 3045, 15—Judgments in Case 8/74 Dassonville [1974] ECR 837, paragraph 18, and Case C-83/91 Meilicke [1992] paragraph 5, and Keck and Mithouard (cited above in ECR I-4871, paragraph 25. footnote 7, paragraph 11).

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44. Behind Karner's argument that the are subordinate to those relating to the free subject-matter of this case is of purely movement of goods, it is necessary first of domestic significance lies a completely all to examine whether the rule in Para- different question which is much more graph 30 of the UWG falls within the scope difficult to answer: does Article 28 EC of Article 28 EC. serve to safeguard the free exercise of commercial activities in the individual Member States, or must it be limited to the liberalisation of intra-Community trade? Ultimately, Troostwijk's concerns undoubtedly have less to do with its sales prospects abroad than with overcoming an onerous advertising restriction that limits 3. Classification as a selling arrangement the exercise of its commercial activities at home. The question is whether this still falls within the scope of Article 28 EC.

47. According to earlier case-law, legisla- tion which restricted or prohibited certain forms of advertising and certain means of sales promotion could, although it did not directly affect trade, be such as to restrict its volume because it affected marketing opportunities. 16 It was on the basis of such an analysis that the Court held in 45. These proceedings raise two questions Oosthoek, 17 GB-INNO-BM, 18 Arago- as regards the scope of Article 28 EC: first, nesa 19 and Yves Rocher20 that prohibi- whether the prohibition on advertising at tions on advertising had restricted the free issue may be a selling arrangement which, movement of goods. since the judgment in Keck and Mithouard, is not in principle covered by the prohibi- tion in Article 28 EC; and, secondly, whether the rule on advertising is to be measured against the provisions on the free movement of goods or the freedom to provide services. 48. However, that case-law was fundamen- tally changed by the judgment in Keck and Mithouard. In that judgment, the Court

16 — Judgments in Case 286/81 Oosthoek's Uitgevers- maatschappij [1982] ECR 4575, paragraph 15, GB- Inno-BM (cited above in footnote 12, paragraph 7), and Keck and Mithouard (cited above in footnote 7, para- graph 13). 17 — Judgment in Oosthoek (cited above in footnote 16). 18 — Judgment in GB-INNO-BM (cited above in footnote 12). 46. Given that, by virtue of the first 19 — Judgment in Joined Cases C-1/90 and C-176/90 Aragonesa paragraph of Article 50 EC, provisions [1991] ECR I-4151. 20 —Judgment in Case C-126/91 Yves Rocher [1993] relating to the freedom to provide services ECR I-2361.

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drew a distinction between product-related 50. Since that departure from precedent, and sales-related measures, excluding the the Court has in principle regarded restric- latter in principle from the scope of tions on advertising in connection with the Article 28 EC. sale of certain goods as sales-related rules not covered by the prohibition contained in Article 28 EC. Reference should be had, by way of example, to the judgments in Hünermund, 23 Leclerc-Siplec 24 and De Agostini. 25 In Gourmet International,26 on the other hand, the Court held that the 49. According to that judgment, the appli- free movement of goods had indeed been cation to products from other Member restricted, as the prohibition on advertising States of national provisions restricting or affected the marketing of imported goods prohibiting certain selling arrangements is more than that of domestic goods, but that not such as to hinder directly or indirectly, the restriction was in principle justified on actually or potentially, trade between the ground of public health, provided Member States within the meaning of the merely that it was proportionate. Dassonville judgment. However, that is the case only on the twofold condition that those provisions apply to all relevant traders operating within the national terri- tory and that they affect in the same manner, in law and in fact, the marketing of domestic products and of those from other Member States. Where those condi- tions are fulfilled, the application of such rules is, according to that judgment, not by nature such as to prevent products from another Member State from having access to the market or to impede such access any more than for domestic products, and as a result such rules fall outside the scope of Article 28 EC. 21 The fact that national 51. Article 30 of the UWG concerns provisions may restrict the volume of sales advertising in connection with the sale of generally, and hence the volume of sales of certain goods and therefore, according to products from other Member States, is thus recent case-law, concerns a selling arrange- no longer considered sufficient to charac- ment. On the basis of that case-law, it terise such provisions as a measure having would therefore have to be concluded in an effect equivalent to a quantitative this case that the prohibition in Article 30 restriction on imports. 22

23 — Cited above in footnote 8, paragraph 22 (advertising of 21—Judgment in Keck and Mithouard (cited above in quasi-pharmaceutical products outside the pharmacy). footnote 7, paragraph 16 et seq.). 24 — Cited above in footnote 9, paragraph 22 (prohibition on 22 — Judgments in Keck and Mithouard (cited above in televised advertisements for distribution undertakings). footnote 7, paragraph 13) and Joined Cases C-418/93 to 25 — Cited above in footnote 10, paragraph 44 (outright ban on C-421/93, C-460/93 to C-462/93, C-464/93, C-9/94, advertising aimed at children less than 12 years of age and C-10/94, C-11/94, C-14/94, C-15/94, C-23/94, C-24/94 on misleading advertising, as provided for by Swedish and C-332/94 Casa Uno and Others [1996] ECR I-2975, legislation). paragraph 24. 26 — Cited above in footnote 11, paragraphs 25 and 32.

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of the UWG does not fall within the scope ments for products, not the products of Article 28 EC. themselves, or their composition, form, size, weight or origin. The prohibition in Article 30 of the UWG is therefore a sales- related measure.

52. Troostwijk sets against the classifica- tion of Paragraph 30 of the UWG as a sales- related measure the argument that the origin of goods has to do not with their sale but with their attributes. It contends that references to the origin of goods are 55. According to the aforementioned case- product-related. law, however, selling arrangements are excluded from the scope of Article 28 EC only where they apply to all relevant traders operating within the national territory and where they affect in the same manner, in law and in fact, the marketing of domestic products and of those from other Member 53. As indicated above, the origin of goods States. 27 is described in Article 3(a) of Directive 84/450 as one of the 'characteristics of goods'. On that basis, it seems entirely reasonable to regard the origin of goods as a distinctive attribute.

56. The prohibition on advertising con- tained in Paragraph 30 of the UWG applies to all traders operating in Austria. The first condition is therefore met. 54. However, that does not mean that the prohibition on advertisements stating that the goods advertised come from an insol- vency estate constitutes a product-related rule. Paragraph 30 of the UWG does not stipulate whether or not goods from an insolvency estate may be marketed in Austria, but how the sale of such goods may be advertised, namely without refer- 57. However, it is doubtful whether the ence to the fact that they come from an second condition is also met. Troostwijk insolvency estate. Article 30 of the UWG submits that advertisements referring to the prohibits advertising that suggests the fact that the goods advertised are from an goods may be obtained at a favourable price on account of their origin. However, this in no way alters the fact that the 27 — Judgment in Keck and Mithouard (cited above in provision in question concerns advertise- footnote 7, paragraph 16).

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insolvency estate are permissible in other main proceedings, such a prohibition does Member States and cites Belgium, France not exist in all Member States, so that the and Sweden as examples. It contends that advertisement prohibited in Austria would the use of the internet makes it impossible be permissible in some Member States. to differentiate between advertising in Austria and advertising in other Member States, and that, as a result, Paragraph 30 of the UWG hinders the free movement of goods in so far as it restricts advertising which is permissible in other Member States. 60. The use of uniform advertising con- cepts throughout the internal market requires protection under Community law against obstacles which impede such activ- ities. The Court has already ruled as such in Yves Rocher and Mars. 28 The internet creates for traders new opportunities 58. The Swedish Government contradicts which, in the absence of Community rules Troostwijk's submission and points out and because the relevant legislation differs that Swedish law contains a provision from one Member State to another, they comparable to Paragraph 30 of the UWG. have as yet been unable fully to utilise. The According to the Commission, the decisive obstacles which this creates must not make criterion is whether the rule concerned it impossible to exercise the fundamental makes it more difficult or even impossible freedoms safeguarded by the Treaty. for foreign products to gain access to the market. It takes the view that the free movement of goods is adversely affected only where domestic distributors of goods are afforded a competitive advantage. In its submission, Article 30 of the UWG does not do that.

61. The question of the extent to which this issue can be resolved by Directive 2000/31/ EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the 59. The question raised by Troostwijk as to internal market (Directive on electronic whether it is possible to differentiate commerce; 29 hereinafter 'the E-Commerce according to the Member State concerned Directive') is immaterial to this case. The where an advertisement is published on the directive was not in force in Austria at the internet is a question of fact which it falls to the national court to examine. Neverthe- less, irrespective of the answer to that 28 — Judgments in Yves Rocher (cited above in footnote 20, question, it remains the case that, according paragraph 10) and Case C-470/93 Mars [1995] ECR I- 1923, paragraph 13. to the submissions of the defendant in the 29 — OJ 2000 L 178, p. 1.

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relevant time, May 2001. Transposition of distinction between sales- and product- the directive did not occur until the E- related measures. Commerce-Gesetz 30 (E-Commerce Law) entered into force on 1 January 2002.

62. The requirement, as referred to by Troostwijk, of compliance with different 64. Ultimately, however, more recent case- advertising rules depending on the Member law appears to indicate that that question State concerned, and the consequent need must be answered in the negative. On the to adjust advertisements accordingly could one hand, the additional costs relate not to constitute discrimination against imported the adjustment of the goods to be imported goods in so far as undertakings not but to the adjustment of the advertising, established in Austria are obliged to adjust that is to say, a sales-related factor. their Community-wide advertising for the According to the distinction drawn in the Austrian market in accordance with Para- judgment in Keck and Mithouard, such graph 30 of the UWG. The mere act of additional financial expenditure would determining what is permissible under the probably have to be regarded as not being law of each Member State incurs consider- covered by Article 28 EC. able costs. 31 The rule in Paragraph 30 of the UWG therefore means that advertising imported goods is more expensive. The question is whether such additional expend- iture alone is sufficient to justify classifica- tion of the rule in question as a measure having an effect equivalent to a quantitative restriction. 65. On the other hand, even in its more recent case-law, the Court has taken into account whether the relevant rule makes it difficult for foreign goods to gain access to 63. The judgment in Yves Rocher can the market. In Gourmet International, it hardly be relied upon to answer that held this to be true of a prohibition on all question, as it predates the judgment in advertising directed at consumers in the Keck and Mithouard, which introduced the form of advertisements in the press, on the radio and on television, the direct mailing of unsolicited material or the placing of posters on the public highway. 32 However, 30 — Bundesgesetz, mit dem bestimmte rechtliche Aspekte des elektronischen Geschäfts- und Rechtsverkehrs geregelt (E- in contrast to the circumstances of that Comniercc-Geserz — ECG) und das Signaturgesetz sowie case, Article 30 of the UWG does not die Zivilprozessordnung geändert werden, (Law governing certam legal aspects of electronic business and legal impose a total prohibition on the advertis- transactions (E-Commerce Law — ECG) and amending the Signature Law and Code of Civil Procedure) BGBl. I ing of goods that come from an insolvency No 152/2001. 31 — See the preamble to the Proposal for a European Parliament and Council Directive on certain legal aspects of electronic commerce in the internal market, COM (1998) 586 final of 18 November 1998, p. 9 et seq. 32 — Cited above in footnote 11, paragraph 2 1 .

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estate. The prohibition applies only to 4. Justification for the restriction on advertisements which make reference to account of overriding reasons in the general the fact that the goods advertised originate interest from a liquidation. Any other means of advertising the marketed goods may be employed, provided of course that they comply with the specific prohibition on misleading acts contained in Article 2 of the UWG. It may to that extent be assumed 68. In the alternative, in the event that the that the rule in question ultimately does not Court does not concur with that analysis, make it more difficult for products from but proceeds on the assumption that other Member States to gain access to the Article 30 of the UWG gives rise to a market than it does for domestic products, restriction on the free movement of goods, with which the consumer is naturally more the question remains whether that rule is familiar. Moreover, there is nothing in the justified, if at all, under Article 30 EC. submissions of the parties to suggest that Article 30 of the UWG makes it more difficult for goods from other Member States to gain access to the Austrian market.

69. According to Article 30 EC, Article 28 EC does not preclude restrictions on imports justified on grounds of public morality, public policy or public security; the protection of health and life of humans, 66. Consequently, it may be assumed that animals or plants; the protection of national Article 30 of the UWG affects in the same treasures possessing artistic, historic or manner, in law and in fact, the marketing of archaeological value; or the protection of domestic products and of those from other industrial and commercial property. No Member States. The conditions governing such grounds of justification are present in classification as a selling arrangement fall- this case. ing outside the scope of Article 28 EC are therefore met.

70. In addition to the general rule in Article 30 EC, it is settled case-law that, in areas where Community law does not provide for harmonisation, obstacles to 67. It must therefore be concluded that the intra-Community trade resulting from dis- prohibition on advertising contained in parities between provisions of national law Article 30 of the UWG, as a sales-related must be accepted in so far as such provi- measure (selling arrangement), does not fall sions are applicable to domestic and within the scope of Article 28 EC. imported products without distinction and

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may be justified as being necessary in order to be overriding requirements in the general to satisfy overriding requirements relating interest which are in principle capable of inter alia to consumer protection. However, justifying restrictions on the free movement in order to be permissible, such provisions of goods. 34 must be proportionate to the objective pursued and that objective must not be capable of being achieved by measures which are less restrictive of intra-Commu- nity trade. 33

73. Troostwijk counters that justification for the advertising restriction by reference to the right to freedom of expression as enshrined in Article 10 of the ECHR. In its view, although that right may be restricted, the suppression of truthful information is 71. As indicated above, Directive 84/450 not essential to the preservation of demo- does not govern cases where advertising is cratic order. restricted by a total prohibition on grounds of a theoretical danger that the public may be misled. The situation in this case is therefore not harmonised by Community law. Furthermore, Paragraph 30 of the UWG is applicable to domestic and imported goods in the same way. The first two conditions are therefore met. The 74. It is true that the Court does not assess question is whether Paragraph 30 is neces- the compatibility with the ECHR of sary on the grounds of consumer protection national rules which do not fall within the and fair trading, the grounds on which the scope of Community law. On the other Austrian legislature adopted it, according to hand, where such rules do fall within the the national court, and whether it is scope of Community law, and reference is proportionate. made to the Court for a preliminary ruling, it must provide all the criteria of interpreta- tion needed by the national court to determine whether those rules are compa- tible with the fundamental rights the observance of which the Court ensures and which derive in particular from the ECHR. In particular, where a Member State relies on a provision which permits 72. In the Court's case-law, consumer the restriction of fundamental freedoms in protection and fair trading are considered order to justify rules which are likely to

33 — Judgments in Case C-313/94 Graffione [1996] ECR I- 34 — Judgments in Ruwet (cited above in footnote 33, para- 6039, paragraph 17, and Case C-3/99 Ruwet [2000] graph 50) and De Agostini (cited above in footnote 10, ECR I-8749, paragraph 50. paragraph 46).

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obstruct the exercise of fundamental free- mation. Advocate General Fennelly, too, doms, such justification, provided for by argued in an Opinion in proceedings con- Community law, must be interpreted in the cerning the directive on tobacco advertising light of the general principles of law and in that advertising should be regarded as particular of fundamental rights. Thus the forming part of the freedom of expression national rules in question can fall under the within the context of Community law. 37 exceptions provided for by Community law only if they are compatible with the fundamental rights the observance of which is ensured by the Court. It follows that, in such a case, it is for the national court and, if necessary, the Court of Justice to appraise the application of those provisions having regard to all the rules of Community law, including freedom of expression, as embo- died in Article 10 of the ECHR, as a general 76. On that analysis, it must be concluded principle of law the observance of which is that the prohibition on advertising con- ensured by the Court. 35 tained in Article 30 of the UWG restricts the freedom of expression. That restriction is made all the more severe by the fact that the prohibition applies to the dissemination of truthful information.

75. According to the case-law of the European Court of Human Rights, all forms of expression are deserving of protec- tion under Article 10(1) of the ECHR. That 77. It must therefore be asked whether the includes information of a commercial nat- restriction is justified. Article 10(2) of the ure, 36that is to say the dissemination of ECHR contains an express reservation: information, the expression of ideas or the freedom of expression may be restricted in dissemination of images in the course of the so far as such restriction is necessary and promotion of an economic activity and the provided for by law. The European Court corresponding right to receive such infor- of Human Rights has confirmed on numer- ous occasions that advertisements, inter alia, may be subjected to restrictions and prohibitions. In its judgment in Markt 35—Judgment in Case C-260/89 ERT [19911 ECR I-2925, paragraph 43 et seq. (on the freedom to provide services Intern, it regarded as permissible restric- and the grounds of justification in Article 46 EC). See also tions adopted in order to protect the to the same effect the judgment in Case C-368/95 Familiapress [1997] ECR I-3689, paragraphs 26 to 28 (on the free movement of goods and the grounds of justification in Article 30 EC). 36 — Eur. Court H. R., Markt Intern Verlag GmbH and Klaus Beermann judgment of 20 November 1989 (cited above in 37 — Joined Opinion of Advocate General Fennelly of 15 June footnote 13), Series A no 165, § 25 et seq., and Casado 2000 in Cases C-376/98 Germany v Parliament and Coca v. Spain judgment of 24 February 1994, Series A no Coimei! and C-74/99 Imperial Tobacco [2000] ECR I- 285, § 35 et seq. 8419, paragraph 145.

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reputation and rights of others. 38 In 79. Against that yardstick, a restriction on Casado Coca it recognised that rules of advertising on grounds of consumer protec- professional conduct pursue a legitimate tion and fair trading, as imposed by aim for the purposes of Article 10(2) and Article 30 of the UWG, would in principle are therefore capable of justifying a restric- probably have to be regarded as compatible tion of advertising opportunities. 39 The with Article 10 of the ECHR, provided that European Commission of Human Rights there is no equivalent means of achieving takes the view that advertising may be those objectives which is less restrictive of subjected to more extensive restrictions the fundamental right to freedom of expres- than the expression of political ideas. 40 sion.

80. It is therefore necessary to examine now whether the prohibition in Article 30 of the UWG is proportionate. The question is whether the prohibition on advertising is necessary. It must be taken into account 78. In the aforementioned Opinion in the when answering that question that the rule case concerning the directive on tobacco at issue prohibits the provision of truthful advertising, Advocate General Fennelly information. The goods offered for sale by argued, by reference to the judgment in auction do originate from a liquidation. Markt Intern, that restrictions should be They have, however, already been removed considered permissible where the competent from the insolvency debtor's estate at the authorities regard them as necessary on time of the auction. reasonable grounds. In his view, beyond its role in promoting economic activity, in respect of which the legislator properly enjoys considerable discretion to impose public-interest restrictions, commercial expression does not normally perform a wider social function of any significance. 41

81. As the Swedish Government correctly observes, a sale organised by an insolvency 38 —Judgment in Marki Intern (cited above in footnote 13, § 31). administrator is normally characterised by 39 — Judgment i n Casado Coca (cited above in footnote 36, § the need to realise the assets of the under- 46). taking as soon as possible and compliance 40 — Decision of 5 May 1979 i n Case 7805/77, X and Church of Scientology v Sweden, Decisions and Reports 16 (1979), with certain legislative provisions. That 68, 73. Frowein, in: Frowein/Peukert, European Conven- tion on Human Rights (1985), Article 10, Paragraph 9, affects the price that can be obtained for with further references. Van Dijk/Van Hoof, Theory and practice of the European Convention on Human Rights the goods offered. The same cannot be said (second edition), Article 10, Paragraph 8, p. 425. of an auction such as that advertised by the 41 — Joined Opinion in Germany v Parliament and Council and defendant in the main proceedings. The Imperial Tobacco (cited above in footnote 37, paragraph 159). defendant is not subject, when organising

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auctions, to the provisions applicable to an held by or on behalf of the insolvency insolvency administrator. Nor is it under administrator and that the goods auctioned pressure to sell the goods as quickly as will no longer form part of the insolvency possible. Those differences justify the draw- estate at the time of the auction. ing of a clear distinction between advertis- ing for an auction such as that held by the defendant in the main proceedings and that for an auction held by an insolvency administrator.

84. That is the purport of the interlocutory injunction from the Handelsgericht Wien ordering Troostwijk to explain to potential buyers at the public auction on 14 May 2001 that the goods had been acquired from the insolvency administrator and that 82. The heading of the advertisement the auction was not being held on his behalf which gave rise to the main proceedings, or on his instructions, but on Troostwijk's 'Insolvency Auction', and the statement own account, and that it was not therefore that the goods to be auctioned originate an insolvency auction. 42 Through that 'from the insolvency estate' may blur that information, the aforementioned two dif- distinction. It can be concluded in this ferences between the two types of auction respect that a prohibition on advertisements are made apparent for these purposes in the stating that the goods advertised come from advertisement. Consumer protection and an insolvency estate is necessary in the fair trading would be ensured without the interests of consumer protection and fair need to suppress truthful information con- trading. cerning the origin of the goods.

85. In its judgment in Yves Rocher too, the 83. It therefore remains to be considered Court considered the provision of such whether the prohibition is proportionate. It clarification to the consumer to be a less is certainly capable of preventing any stringent measure than the suppression of danger that consumers will be misled. truthful information. 43 Support for the However, it is questionable whether the objective sought could also be achieved by less stringent means. A less restrictive 42 — See the wording of the second part of the application for an measure might be the requirement of a interlocutory injunction, as reproduced in the order for statement in the text of the advertisement reference. 43 — Judgment in Yves Rocher (cited above in footnote 20, making it clear that the auction is not being paragraphs 16 to 18).

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solution advocated here can therefore be indirectly and potentially, of having an taken from that judgment. effect on the sale of goods auctioned in Austria to buyers in other Member States.

86. Consequently, it must be concluded 88. Although the order for reference that a total prohibition on advertisements expressly raises only the question of the stating that the goods advertised come from interpretation of Article 28 EC, the Court an insolvency estate goes beyond what is has on numerous occasions in the past held necessary in the interests of consumer that it must extract from all the factors protection and fair trading, and is therefore provided by the national court the elements disproportionate. The prohibition cannot of Community law requiring an interpreta- therefore be justified by reference to Arti- tion, having regard to the subject-matter of cle 30 EC or to overriding reasons in the the dispute. 44 The order for reference does general interest. not therefore preclude a legal assessment of other provisions of the Treaty.

89. It is settled case-law, however, that C — Measures having equivalent effect to a Article 29 EC precludes only those national restriction on exports (Article 29 EC) measures that have as their specific object or effect the restriction of patterns of exports and establish a difference in treat- ment between the domestic trade of a Member State and its export trade in such a way as to provide a particular advantage 87. Troostwijk's submission that the pro- for national production or for the domestic hibition in Article 30 of the UWG means market of the State in question. 45 Accord- that an advertisement for an auction to be ing to the findings of the referring court, the held in Austria, which is permitted in other purpose of the prohibition on advertising, Member States, cannot be used because it is on the other hand, is not to govern the not possible to vary the advertisement movement of goods but to ensure consumer according to the Member State concerned protection and fair trading. Consequently, raises the question whether Article 30 of the given the lack of a specific restriction on UWG constitutes a measure having equiva- lent effect to a quantitative restriction on exports within the meaning of Article 29 EC. The fact that an advertisement pub- 44 — Judgment in Case 20/87 Cauchard [1987] ECR 4879, paragraph 7, with further references. lished on the internet and permitted in other 45 — Judgments in Case 238/82 Duphar [1984] ECR 523, Member States is precluded by the rule in paragraph 25, Clase 172/82 Inter-Huiles and Others [1983] ECR 555, paragraph 12, and Case C-209/98 Sydhavnens Article 30 of the UWG is capable, at least Sien & Grus [2000] ECR I-3743, paragraph 34.

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exports, the rule in question falls outside Paragraph 30 of the UWG is compatible the scope of Article 29 EC. with the provisions on the freedom to provide services.

92. The judgments in GB-INNO-BM and D — Freedom to provide services (Article 49 Schindler demonstrate how difficult it can EC) be to draw that distinction in practice. Both cases concerned the distribution of adver- tising material. In the judgment in GB- INNO-BM, the Court examined the dis- tribution of promotional literature exclu- sively from the point of view of the free movement of goods. 46 In Schindler, on the 90. If the approach I have set out above is other hand, the mailing of advertising adopted and the prohibition in Article 30 of material regarding a 4 foreign 7 lottery was the UWG is classified as a selling arrange- classified as a service. ment that falls outside the scope of Arti- cle 28 EC, the question arises whether that rule falls within the scope of the provisions on the freedom to provide services and, if so, to what extent it is consistent with those provisions.

93. It is clear from this that the decision must be made not in the abstract, but in the light of the specific circumstances of each particular case. For instance, if the adver- tisement is produced and published by the seller himself, it should logically be seen as part of the sale of the goods in question. 91. It is at this point that the aforemen- That might apply, for instance, to a sign tioned problem regarding the distinction to displayed in retail outlets which has been be drawn between the scope of Article 28 written by the seller himself. The decision EC and that of Article 49 EC becomes clear. will probably have to be different where the The prohibition in question concerns adver- advertisement is produced and published by tising. If advertising is seen as part of the a third party, for example by an indepen- general commercial process of selling goods, that rule must be examined exclu- sively from the point of view of the free movement of goods. However, if advertis- 46 — Judgment in GB-INNO-BM (cited above in footnote 12, ing is seen as a separate activity, the paragraph 7 et seq.). 47 — Judgment in Case C-275/92 Schindler [1994] ECR I-1039, question arises whether the prohibition in paragraphs 20 to 25.

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dent advertising agency. Such an activity from the Court, that it had not used an would in principle have to be classified as advertising agency but had placed the falling within the scope of Article 49 EC. notice on the internet itself. However, that does not rule out the application of the provisions on the freedom to provide services, since the auction notice at issue in the main proceedings, which is repro- duced in the order for reference, gives the internet address 'www.troostwijk.com'. 94. The order for reference contains no That is the home page of the parent information on the factual circumstances company of the defendant in the main surrounding the advertisement on the inter- proceedings, which is established in the net. The following observations can there- Netherlands. That site currently contains a fore serve only as practical guidance on list of dates of auctions taking place across how the national court should assess the Europe, and includes advertisements com- facts of the case in the context of Commu- parable to that used by the defendant in the nity law if it establishes that the advertise- main proceedings and catalogues listing the ment in question was placed on the internet goods offered for sale at each auction. This by a third party. suggests that the advertisement in question was placed on the internet by the parent company, which operates throughout Eur- ope and is established in the Netherlands. If the parent company and the subsidiary each have their own legal personality, the national court will have to rule on whether 95. The main proceedings concern an Article 30 of the UWG is compatible with advertisement which was published inter the provisions on the freedom to provide alia on the website 'www.troostwijkauc- services. tions.com'. The national court will first of all have to ascertain whether the defendant in the main proceedings placed the adver- tisement on the internet itself or whether that was done by a third party. If it is the former, the facts of the case will have to be assessed exclusively in the context of the free movement of goods; if it is the latter, the prohibition in Article 30 of the UWG will have to be examined with a view also 97. The freedom to provide services could to determining its compatibility with the have been restricted in two ways. If the freedom to provide services. advertisement was placed on the internet by a third party, including a parent company with independent legal status, which is established in another Member State, the freedom to provide services could have been restricted in so far as Article 30 of the UWG totally prohibits the distribution of the 96. It is true that, at the hearing, Troost- advertisement in Austria. The service in wijk explained, in response to a question question could not in those circumstances

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have been provided for the Austrian com- whether it is proportionate to that purpose, pany Troostwijk. and whether those objectives or overriding reasons cannot be served by less restrictive measures.

98. If, however, the third party is also established in Austria, the freedom to provide services could have been restricted in so far as the advertisement cannot be distributed via the internet to other Mem- ber States where such advertisements are in principle permitted. Troostwijk submitted, without contradiction, that it is not possible to vary the publication of advertisements according to the Member State concerned. 100. The grounds of justification listed in That being the case, the only way in which Article 46 EC do not seem relevant to the Article 30 of the UWG could be complied main proceedings. However, it is settled with would be for no advertisements to be case-law that consumer protection and fair placed on the internet. This, moreover, is trading in principle constitute overriding consistent with the home State principle. reasons in the general interest which are That principle requires compliance with the capable of justifying restrictions on the provisions applicable in the Member State freedom to provide services. 49 It is true from which the relevant communication is that Article 30 of the UWG seeks to protect sent. The home State principle is enshrined consumers and ensure fair trading. How- inter alia in Article 3(1) of the E-Commerce ever, for the reasons given in the context of Directive and has been applied by the Court the examination of the provisions on the in the context of the broadcasting of free movement of goods, the rule laid down television advertising. 48 in Article 30 of the UWG probably has to be regarded as disproportionate in this context too. A distinction in the advertise- ment at issue making it clear that it is not an advertisement for an auction of assets in an insolvency estate organised by an insol- vency administrator would be just as effective in ensuring consumer protection and fair trading as the total prohibition 99. In those circumstances, it would fall to contained in Article 30 of the UWG. the national court to examine whether the Consequently, any restriction of the free- restriction in Article 30 of the UWG is dom to provide services would be unjusti- necessary in order to achieve one of the fied. objectives referred to in Article 46 EC or for overriding reasons in the general interest,

49 — Judgments in Case C-288/89 Collectieve Antennevoorzien- ing Gouda and Others [1991] ECR I-4007, paragraph 14, 48—Judgment in De Agostini (cited above in footnote 10, and in De Agostini (cited above in footnote 10, para- paragraph 51). graph 53).

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VI — Conclusion

101. It must therefore be concluded that Article 30 of the UWG does not fall within the scope of Article 28 or Article 29 EC. As regards the freedom to provide services, the national court must first clarify the relevant facts before it can be decided whether Article 30 of the UWG is incompatible with Article 49 EC. That measure cannot be justified by reference to overriding reasons in the general interest because it is disproportionate.

102. I therefore propose that the question referred be answered as follows:

Article 28 EC is to be interpreted as meaning that it does not preclude national legislation which prohibits any reference, however true, to the fact that goods come from an insolvency estate, where public announcements or notices intended for a large audience advertise the sale of goods originating from, but no longer forming part of, an insolvency estate. Such legislation may nevertheless constitute a disproportionate restriction on the freedom to provide services, if it can properly be assessed against the provisions relating to that freedom (Article 49 EC).

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