# C_2007096EN.01000602.xml

| 28.4.2007 | EN | Official Journal of the European Union | C 96/6 |
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Judgment of the Court (Grand Chamber) of 24 April 2007 — Commission of the European Communities v Kingdom of the Netherlands

(Case C-523/04)( 1 )

(Failure by a Member State to fulfil its obligations - Conclusion by a Member State of a bilateral air transport agreement with the United States of America - Right of establishment - Secondary law governing the internal market in air transport - External competence of the Community)

(2007/C 96/09)

Language of the case: Dutch

Parties

Applicant: Commission of the European Communities (represented by: M. Huttunen and W. Wils, Agents)

Defendant: Kingdom of the Netherlands (represented by: H.G. Sevenster and M. de Grave, Agents)

Intervener in support of the defendant: French Republic (represented by: G. de Bergues and A. Hare, Agents)

Re:

Failure of a Member State to fulfil its obligations — Infringement of Articles 5 and 52 of the EC Treaty (now Articles 10 and 43 EC) — Infringement of Council Regulations (EEC) Nos 2409/92 of 23 July 1992 on fares and rates for air services (OJ 1992 L 240, p. 15) and 2299/89 of 24 July 1989 on a code of conduct for computerised reservation systems (OJ 1989 L 220, p. 1), as amended by Council Regulation (EEC) No 3089/93 of 29 October 1993 (OJ 1993 L 278, p. 1) — ‘Open sky ’bilateral agreement with the US — Review — Restrictions on freedom to provide services

Operative part of the judgment

The Court:

| 1. | By contracting or maintaining in force, despite the renegotiation of the Air Transport Agreement concluded between the Kingdom of the Netherlands and the United States of America on 3 April 1957, international commitments towards the United States of America:
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concerning air fares and rates charged by carriers designated by the United States of America on intra-Community routes, —
concerning computerised reservations systems used or offered for use on Netherlands territory, and —
recognising the United States of America as having the right to withdraw, suspend or limit traffic rights in cases where air carriers designated by the Kingdom of the Netherlands are not owned by the latter or by Netherlands nationals, the Kingdom of the Netherlands has failed to fulfil its obligations under Article 5 of the EC Treaty (now Article 10 EC), Article 52 of the EC Treaty (now, after amendment, Article 43 EC), and under Council Regulations (EEC) Nos 2409/92 of 23 July 1992 on fares and rates for air services and 2299/89 of 24 July 1989 on a code of conduct for computerised reservation systems. | — | concerning air fares and rates charged by carriers designated by the United States of America on intra-Community routes, | — | concerning computerised reservations systems used or offered for use on Netherlands territory, and | — | recognising the United States of America as having the right to withdraw, suspend or limit traffic rights in cases where air carriers designated by the Kingdom of the Netherlands are not owned by the latter or by Netherlands nationals, |
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| — | concerning air fares and rates charged by carriers designated by the United States of America on intra-Community routes, | | | | | | |
| — | concerning computerised reservations systems used or offered for use on Netherlands territory, and | | | | | | |
| — | recognising the United States of America as having the right to withdraw, suspend or limit traffic rights in cases where air carriers designated by the Kingdom of the Netherlands are not owned by the latter or by Netherlands nationals, | | | | | | |

| 2. | The Kingdom of the Netherlands is ordered to pay the costs. |
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| 3. | The French Republic is ordered to bear its own costs. |
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( 1 )  OJ C 57, 5.3.2005.

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