Politico detailed the Brussels vs. Germany case on Wednesday, Polish state news agency PAP reported.
According to Politico, “it’s a typical single market case” in which German regions are alleged to have “prevented foreign companies (Swedish furniture maker Ikea and French sporting goods retailer Decathlon) from setting up shop on their territory,” prompting an investigation by the Commission.
"While Brussels usually follows up quickly on such cases, this one disappeared in the system — raising the question of whether there are different rules for the bloc’s largest member countries," Politico reported.
Ikea, Decathlon make complaints against Germany
It said that "Ikea first made a complaint against Germany in 2008, followed by a similar complaint by Decathlon in 2014, after two German federal states blocked the opening of hundreds of stores."
The companies argued that Germany "was in breach of the right of freedom of establishment enshrined in the EU Treaties as well as the Services Directive.”
Commission procedure stalls
Politico added: “The Commission agreed, opening an infringement procedure into the complaints, sending a letter of formal notice to Germany. A second letter of formal notice was sent in 2015.”
However, since then there have been no further developments in the infringement procedure, according to Politico.
In 2022, the EU Ombudsman found that the Commission had taken “an unreasonably long time” in dealing with the next stage of the infringement procedure, the PAP news agency reported.
“But the Commission has now decided to drop the case altogether,” Politico said.
The EU executive said Germany told it in March that it was “modifying national legislation,” according to Politico.
The Commission maintains that “the German planning rules at the Länder level contain restrictions to the freedom of establishment,” Brussels officials said.
Brussels has “discretion in deciding whether or not, and when, to start an infringement procedure or to refer a case to the Court of Justice" of the EU, the Commission said in a letter seen by Politico.
“All this begs the question of how and why the Commission did not proceed with the complaint,” Politico said.
(pm/gs)
Source: PAP, wgospodarce.pl, politico.eu