Judgment — ECLI:EU:C:2011:501
Date: 2011-07-21
Language of the case: Portuguese
Court formation: Fifth Chamber
Subject matter: Right of establishment;Freedom to provide services
Procedure: Action for failure to fulfil obligations - successful
Origin: Portugal

Judgment of the Court (Fifth Chamber) of 21 July 2011 - European Commission v Portuguese Republic (Case C-518/09) 1 (Failure of a Member State to fulfil obligations - Freedom of establishment and freedom to provide services - Carrying out real estate activities) Language of the case: Portuguese Parties Applicant: European Commission (represented by: I Rogalski and P. Guerra e Andrade, acting as Agents) Defendant: Portuguese Republic (represented by: L. Inez Fernandes, Agent, and N. Ruiz, advogado) Re: Failure of a Member State to fulfil obligations - Infringement of Articles 49 TFEU and 56 TFEU - Carrying out real estate activities Operative part of the judgment The Court: 1. Declares that, - by permitting activities of real estate brokers to be carried out only within real estate agencies; - by requiring real estate brokerages and real estate agents established in other Member States to cover their professional liability by taking out insurance which complies with Portuguese legislation; - by requiring real estate brokerages established in other Member States to hold positive equity within the meaning of that legislation, and - by making real estate brokerages and real estate agents established in other Member States subject to the full disciplinary control of the Instituto de Construção e do Imobiliário IP, the Portuguese Republic has failed to fulfil its obligations under Article 56 TFEU, and - by requiring real estate brokerages to carry out exclusively real estate brokerage activities, with the exception of the management of real property on behalf of third parties, and - by requiring real estate agents to carry out exclusively real estate agency activities, the Portuguese Republic has failed to fulfil its obligations under Articles 49 TFEU and 56 TFEU; 2. Orders the Portuguese Republic to pay the costs. ____________ 1 - OJ C 37, 13.2.2010.