C-76/90, Sager [1991]

1. Facts:

• Background: A UK-based company sought to enter the German market to offer patent renewal services.

• Requirement: The company needed to meet the German qualification criteria to operate in Germany.

• Issue: The German qualification requirement made it more difficult for non-German providers to enter the market, as German providers were more likely to meet the criteria.

2. Outcome:

• Violation of Art. 56 TFEU: The European Court of Justice (ECJ) found that the German qualification requirement violated Article 56 TFEU. Although not a case of direct discrimination, the requirement was considered a restriction on the free movement of services.

3. Impact and Analysis:

• Article 56 TFEU Requirements:

◦ Elimination of Discrimination: Article 56 not only demands the removal of discrimination against service providers from other Member States but also the removal of any restrictions that might impede their activities.

◦ Restrictions on Market Access: The Court held that Article 56 covers not just direct discrimination but any restriction liable to prohibit or impede the activities of a service provider, reflecting the broad scope established by the Dassonville formula for goods.

◦ Dassonville Moment of Services: This case extended the principle established in Dassonville (regarding goods) to the free movement of services, emphasising that any measure that hinders or restricts market access, even if not directly discriminatory, is covered by Article 56.