Brussels, 11/06/2015 (Agence Europe) - Belgian electronic communications operators Mobistar and Base have won their case at the European Court of Justice over the financing mechanism for universal service and social tariffs.
In a ruling issued on Thursday 11 June in Case C-1/14, the European Court of Justice ruled that the Universal Service Directive (2002/22/EC) does not lay down a social pricing obligation for mobile communications and mobile Internet subscriptions. The Court points out that Member States are free to consider mobile communication services, including internet subscription services provided by means of mobile communication services, as additional mandatory services, for the purposes of the Universal Service Directive. In that case, a financing mechanism for those services involving specific undertakings cannot be imposed.
In 2011, Base Company and Mobistar appealed to the Belgian constitutional court for an annulment to the financing mechanism for universal service in the Belgian law transposing the Universal Service Directive. That mechanism requires payment of a contribution by operators whose turnover reaches or exceeds certain thresholds. Base Company and Mobistar submit that the obligation to contribute to the financing of the net costs arising from the provision of mobile communication services and/or internet subscriptions is contrary to EU law.
The constitutional court asked the European Court of Justice whether the financing mechanism laid down in the EU directive and the social tariffs applied to mobile communications and mobile internet.
In the judgment, the Court holds that the Universal Service Directive expressly imposes an obligation on the Member States to ensure the connection at a fixed location to a public communications network. However, the term 'at a fixed location' means the opposite of the term 'mobile'. On the other hand, internet subscription services are included in that set if, in order for them to be provided, there must be a connection to the internet at a fixed location.
The Court points out that Member States are free to consider mobile communication services, including internet subscription services provided by means of mobile communication services, as additional mandatory services, for the purposes of the Universal Service Directive. The ruling epxlains that such a case, a financing mechanism for those services involving specific undertakings cannot be imposed. (Lionel Changeur)