Brussels, 30/04/2014 (Agence Europe) - The European Court of Justice has ruled that member states have the right to monitor the activities of electronic telecommunications service providers established in other member states, in the context of consumer protection and carrying out investigations but cannot demand that these providers to establish a subsidiary on their territory.
This decision was made on Wednesday 30 April in a case (C-475/12) involving the Luxembourg company, UPC, which opposed radio and audiovisual broadcasting services internationally, and the Hungarian authorities. The case was presented to the European Court of Justice by the Court in Budapest. UPC sought to find out whether Community law authorises the Hungarian authorities to monitor its activities on their territory. Complaints had been brought by UPC subscribers in Hungary and the company refused to provide information on contractual relations with its customers because the company was registered in Luxembourg. UPC challenged the fine imposed on it for this refusal in the Hungarian court.
In its ruling, the Court of Justice states that the services provided by the UPC constitute an “electronic communication service” covered by the directive on authorising electronic communication services and networks (2002/20/EC). The Court notes in that regard that the authorisation directive enables member states to require registration of commencement of the supply of such a service in their territory. Likewise, the directive authorises a member state in whose territory the recipients of the service are resident to make its provision subject to certain conditions specific to the electronic communications sector. Accordingly, national authorities may request from undertakings information required for verification of compliance with conditions relating to consumer protection and in that context may initiate surveillance proceedings in relation to the activity in its territory of an electronic communications service provider which is established in another member state. On the other hand, member states may not require such providers to create a branch or a subsidiary in their territory, as such an obligation would be contrary to the freedom to provide services. (MD/FG)