C-120/78, Cassis de Dijon [1979]

1. Facts

• Issue: A German supermarket sought to sell French blackcurrant liquor, Cassis de Dijon, which had an alcoholic strength of 15-20%. Germany had a law requiring spirits to have an alcoholic strength of at least 25%, which prevented the import of Cassis de Dijon.

• Public Interest Grounds Raised by Germany:

1. Consumer Protection: Concerns that spirits with lower alcoholic strength might encourage higher alcohol consumption.

2. Competitive Advantage: Lower-strength drinks might give an unfair competitive edge over more expensive German drinks.

2. Outcome

• Decision: The European Court of Justice (ECJ) found Germany’s arguments unconvincing and held that the German law violated Article 34 TFEU.

• Reasoning: The German product requirements constituted a restriction on the free movement of goods within the EU.

3. Impact and Analysis

• Distinctly Applicable Measures: These are measures that directly discriminate against imports and are not allowed under any circumstances. For example, if the UK banned all imports of fish, this would be directly discriminatory.

• Indistinctly Applicable Measures: These measures indirectly discriminate by affecting both imports and domestic goods. They may be permissible if they meet specific justifications, such as those listed in Article 36 TFEU:

◦ Effectiveness of Fiscal Supervision

◦ Public Health

◦ Fairness of Commercial Transactions

◦ Consumer Protection

• These justifications are non-exhaustive but must be interpreted narrowly in light of Article 36.

• Principle of Mutual Recognition: Goods produced in one Member State can generally be sold in other Member States, regardless of domestic regulations. This principle is conditional, meaning Member States can impose restrictions if they are justified and proportionate. This creates a conditional principle of home country control.