Judgment of the Court (Second Chamber) of 25 June 2014 — Commission v Portugal

(Case C‑76/13)

‛Failure to fulfil obligations — Directive 2002/22/EC — Electronic communications — Networks and services — Designation of the undertakings responsible for universal service obligations — Incorrect transposition — Judgment of the Court establishing a failure to fulfil obligations — Non-compliance — Article 260(2) TFEU — Financial penalties — Penalty payment — Lump sum payment’

1. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Period for implementation — Reference date for assessing whether there has been a failure to fulfil obligations (Art. 260(1) TFEU) (para. 26)

2. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Imposition of a lump sum payment — Commission proposals and guidelines — Effect — Discretion of the Court — Criteria for assessment (Art. 260(2) TFEU) (paras 49-51, 56, 61)

3. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Period for implementation (Art. 260(1) TFEU) (see para. 57)

4. Member States — Obligations — Implementation of directives — Failure to fulfil obligations — National system pleaded as justification — Not permissible (Art. 260(2) TFEU) (see para. 60)

5. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Lump sum — Calculation of the amount — Criteria — Ability to pay — Taking account of the economic crisis (Art. 260(2) TFEU) (see para. 66)

6. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Periodic penalty payment — Imposition of a penalty payment — Condition — Failure to comply continuing up to the time of the Court’s examination of the facts (Art. 260(2) TFEU) (paras 69, 72)

7. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Periodic penalty payment — Calculation of the amount — Criteria (Art. 260(2) TFEU) (see para. 73)

Re:

Failure of a Member State to fulfil its obligations — Article 260(2) TFEU — Failure to implement the judgment of the Court of 7 October 2010 in Case C‑154/09 Commission v Portugal — Request to set a periodic penalty payment.

Operative part

The Court:

1. Declares that, by failing to adopt all of the measures necessary to ensure compliance with the judgment in Commission v Portugal (C-154/09, EU:C:2010:591), the Portuguese Republic has failed to fulfil its obligations under Article 260(1) TFEU;

2. Orders the Portuguese Republic to pay the European Commission, into the account ‘European Union own resources’, a lump sum of EUR 3 million;

3. Orders the Portuguese Republic to pay the European Commission, into the account ‘European Union own resources’, a penalty payment of EUR 10 000 for each day of delay in adopting the measures necessary to ensure compliance with the judgment in Commission v Portugal (C‑154/09, EU:C:2010:591), from the date on which judgment is delivered in the present case until the date of full compliance with that judgment;

4. Orders the Portuguese Republic to pay the costs.

Judgment of the Court (Second Chamber) of 25 June 2014 — Commission v Portugal

(Case C‑76/13)

‛Failure to fulfil obligations — Directive 2002/22/EC — Electronic communications — Networks and services — Designation of the undertakings responsible for universal service obligations — Incorrect transposition — Judgment of the Court establishing a failure to fulfil obligations — Non-compliance — Article 260(2) TFEU — Financial penalties — Penalty payment — Lump sum payment’

1. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Period for implementation — Reference date for assessing whether there has been a failure to fulfil obligations (Art. 260(1) TFEU) (para. 26)

2. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Imposition of a lump sum payment — Commission proposals and guidelines — Effect — Discretion of the Court — Criteria for assessment (Art. 260(2) TFEU) (paras 49-51, 56, 61)

3. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Period for implementation (Art. 260(1) TFEU) (see para. 57)

4. Member States — Obligations — Implementation of directives — Failure to fulfil obligations — National system pleaded as justification — Not permissible (Art. 260(2) TFEU) (see para. 60)

5. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Lump sum — Calculation of the amount — Criteria — Ability to pay — Taking account of the economic crisis (Art. 260(2) TFEU) (see para. 66)

6. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Periodic penalty payment — Imposition of a penalty payment — Condition — Failure to comply continuing up to the time of the Court’s examination of the facts (Art. 260(2) TFEU) (paras 69, 72)

7. Actions for failure to fulfil obligations — Judgment of the Court establishing the failure of a Member State to fulfil its obligations — Breach of the obligation to comply with the judgment — Pecuniary penalties — Periodic penalty payment — Calculation of the amount — Criteria (Art. 260(2) TFEU) (see para. 73)

Re:

Failure of a Member State to fulfil its obligations — Article 260(2) TFEU — Failure to implement the judgment of the Court of 7 October 2010 in Case C‑154/09 Commission v Portugal — Request to set a periodic penalty payment.

Operative part

The Court:

1. Declares that, by failing to adopt all of the measures necessary to ensure compliance with the judgment in Commission v Portugal (C-154/09, EU:C:2010:591), the Portuguese Republic has failed to fulfil its obligations under Article 260(1) TFEU;

2. Orders the Portuguese Republic to pay the European Commission, into the account ‘European Union own resources’, a lump sum of EUR 3 million;

3. Orders the Portuguese Republic to pay the European Commission, into the account ‘European Union own resources’, a penalty payment of EUR 10 000 for each day of delay in adopting the measures necessary to ensure compliance with the judgment in Commission v Portugal (C‑154/09, EU:C:2010:591), from the date on which judgment is delivered in the present case until the date of full compliance with that judgment;