Judgment — ECLI:EU:C:1997:504
Date: 1997-10-23
Language of the case: Swedish
Court formation: Full Court
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Free movement of goods;Measures having equivalent effect;Quantitative restrictions;State monopolies of a commercial character
Concepts: Protection of public health and protection of plants;Import or export licences and declarations, standards certificates, etc.;General
Procedure: Reference for a preliminary ruling
Origin: Sweden

Summary of the Judgmen t 
1. National monopolies of a commercial character — Article 37 of the Treaty — Purpose — 
Reconciling the requirements of the common market with the Member States' interests in 
maintaining certain monopolies of a commercial character — Obligation to adjust monopolies 
so as to exclude any discrimination between nationals of the Member States regarding the 
conditions under which goods are procured and marketed 
(EC Treaty, Art. 37) 
2. National monopolies of a commercial character — Article 37 of the Treaty — National 
monopoly on the retail of alcoholic beverages — Monopoly characterized by criteria and 
methods for selecting products, a retail sales network and non-discriminatory methods of pro­
moting products or not liable to put at a disadvantage, in fact or in Uw, beverages imported 
from other Member States — Whether permissible 
(EC Treaty, Art. 37) 
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SUMMARY — CASE C-189/95 
3. Free movement of goods — Quantitative restrictions — Measures having equivalent effect — 
Importation of alcoholic beverages reserved to holders of a production licence or a wholesale 
licence — Obstacle to the importation of alcoholic beverages from other Member States — 
Justification — Protection of public health — None 
(EC Treaty, Arts 30 and 36) 
1. The purpose of Article 37 of the Treaty is 
to reconcile the possibility for Member 
States to maintain certain monopolies of a 
commercial character as instruments for 
the pursuit of public interest aims with 
the requirements of the establishment and 
functioning of the common market. It 
aims at the elimination of obstacles to the 
free movement of goods, save, however, 
for restrictions on trade which are inher­
ent in the existence of the monopolies in 
question. 
Thus, Article 37 requires that the organi­
zation and operation of such a monopoly 
be arranged so as to exclude any discrimi­
nation between nationals of Member 
States as regards conditions of supply and 
outlets, so that trade in goods from other 
Member States is not put at a disadvan­
tage, in law or in fact, in relation to that 
in domestic goods and that competition 
between the economies of the Member 
States is not distorted. 
2. Article 37 of the Treaty does not preclude 
national provisions relating to the organi­
zation of a national monopoly on the 
retail of alcoholic beverages laying down 
such matters as the criteria or methods 
for the selection of products by the 
monopoly and rules relating to the estab­
lishment of retail outlets or to the promo­
tion of products sold by the monopoly, if 
those provisions are neither discrimina­
tory nor liable to put at a disadvantage, in 
law or in fact, beverages imported from 
other Member States. 
3. Articles 30 and 36 of the Treaty preclude 
domestic provisions allowing only traders 
holding a production licence or a whole­
sale licence to import alcoholic beverages 
if the licensing system constitutes an 
obstacle to the importation of alcoholic 
beverages from other Member States by 
entailing additional costs for those bever­
ages, such as intermediary costs, payment 
of charges and fees for the grant of a 
licence and costs arising from the obliga­
tion to maintain storage capacity in the 
territory of the Member State concerned, 
and if it is not established that the licens­
ing system set up under those national 
provisions, in particular as regards the 
conditions relating to storage capacity 
and the high fees and charges which 
licence holders are required to pay, is 
proportionate to the public health aim 
pursued or that this aim could not have 
been attained by measures less restrictive 
of intra-Community trade. 
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