CELEX: C1999/204/32
Language: en
Date: 1999-07-17 00:00:00
Title: Judgment of the Court of 1 June 1999 in Case C-126/97 (reference for a preliminary ruling from the Hoge Raad der Nederlanden): Eco Swiss China Time Ltd v Benetton International NV (Competition - Application by an arbitration tribunal, of its own motion, of Article 81 EC (ex Article 85) - Power of national courts to annul arbitration awards)

17.7.1999                EN                      Official Journal of the European Communities                                            C 204/17
                  JUDGMENT OF THE COURT                                                       JUDGMENT OF THE COURT
                                                                                                        of 1 June 1999
                            of 1 June 1999
                                                                            in Case C-302/97 (reference for a preliminary ruling from
                                                                            the Landesgericht für Zivilrechtssachen Wien): Klaus
in Case C-126/97 (reference for a preliminary ruling from                                    Konle v Republic of Austria (1)
the Hoge Raad der Nederlanden): Eco Swiss China Time
               Ltd v Benetton International NV (1)
                                                                            (Freedom of establishment — Free movement of capital —
                                                                            Articles 52 of the EC Treaty (now, after amendment, Article
(Competition — Application by an arbitration tribunal, of                   43 EC) and 56 EC (ex Article 73b) — Authorisation
its own motion, of Article 81 EC (ex Article 85) — Power of                 procedure for the acquisition of immovable property —
          national courts to annul arbitration awards)                      Article 70 of the Act concerning the conditions of accession
                                                                            of the Republic of Austria — Secondary residences —
                                                                                         Liability for breach of Community law)
                           (1999/C 204/32)
                                                                                                       (1999/C 204/33)
                     (Language of the case: Dutch)                                             (Language of the case: German)
                                                                            (Provisional translation; the definitive translation will be published
(Provisional translation; the definitive translation will be published                          in the European Court Reports)
                    in the European Court Reports)
                                                                            In Case C-302/97: reference to the Court under Article 234
                                                                            EC (ex Article 177) from the Landesgericht für Zivilrechtssach-
In Case C-126/97: reference to the Court under Article 234                  en Wien (Regional Civil Court), Vienna, for a preliminary
EC (ex Article 177) by the Hoge Raad der Nederlanden                        ruling in the proceedings pending before that court between
(Netherlands) for a preliminary ruling in the proceedings                   Klaus Konle and Republic of Austria — on the interpretation
before that court between Eco Swiss China Time Ltd and                      of Articles 10 EC (ex Article 5), 6 of the EC Treaty (now, after
Benetton International NV on the interpretation of Article 81               amendment, Article 12 EC), 52, 54, 56 and 57 of the EC
EC (ex Article 85) — the Court, composed of G.C. Rodrı́guez                 Treaty (now, after amendment, Articles 43 EC, 44 EC, 46 EC
Iglesias, President, P.J.G. Kapteyn, J.-P. Puissochet, G. Hirsch            and 47 EC), 53 of the EC Treaty (repealed by the Treaty of
and P. Jann (Presidents of Chambers), G.F. Mancini, J.C. Moitin-            Amsterdam), 45 EC and 48 EC (ex Articles 55 and 58), 56 EC
ho de Almeida (Rapporteur), C. Gulmann, J.L. Murray,                        to 60 EC (ex Articles 73b to 73d, 73f and 73g), 73e and 73h
D.A.O. Edward, H. Ragnemalm, L. Sevón and M. Wathelet,                     of the EC Treaty (repealed by the Treaty of Amsterdam), and
Judges; A. Saggio, Advocate General; H. von Holstein, Deputy                Article 70 of the Act concerning the conditions of accession
Registrar, has given a judgment on 1 June 1999, in which it                 of the Republic of Austria, the Republic of Finland and the
has ruled:                                                                  Kingdom of Sweden and the adjustments to the Treaties on
                                                                            which the European Union is founded (OJ 1994 C 241, p. 21,
                                                                            and OJ 1995 L 1, p. 1) — the Court, composed of: G.C. Rodrı́-
1. A national court to which application is made for annulment of           guez Iglesias, President, P.J.G. Kapteyn, J.-P. Puissochet (Rap-
     an arbitration award must grant that application if it considers       porteur), G. Hirsch and P. Jann (Presidents of Chambers),
     that the award in question is in fact contrary to Article 81 EC        G.F. Mancini, J.C. Moitinho de Almeida, C. Gulmann, J.L. Mur-
     (ex Article 85), where its domestic rules of procedure require it to   ray, D.A.O. Edward, H. Ragnemalm, L. Sevón and M. Wathelet,
     grant an application for annulment founded on failure to observe       Judges; A. La Pergola, Advocate General; H.A. Rühl, Principal
     national rules of public policy.                                       Administrator, for the Registrar, has given a judgment on
                                                                            1 June 1999, in which it has ruled:
2. Community law does not require a national court to refrain from
     applying domestic rules of procedure according to which an             1. Article 56 EC (ex Article 73b) and Article 70 of the Act
     interim arbitration award which is in the nature of a final award          concerning the conditions of accession of the Republic of Austria,
     and in respect of which no application for annulment has been              the Republic of Finland and the Kingdom of Sweden and the
     made within the prescribed time-limit acquires the force of res            adjustments to the Treaties on which the European Union is
     judicata and may no longer be called in question by a subsequent           founded:
     arbitration award, even if this is necessary in order to examine,
     in proceedings for annulment of a subsequent arbitration award,            — do not preclude a scheme for acquiring land such as that
     whether an agreement which the interim award held to be valid                   introduced by the Tiroler Grundverkehrsgesetz 1993, unless
     in law is nevertheless void under Article 81 EC (ex Article 85).                that Law was deemed not to form part of the domestic legal
                                                                                     system of the Republic of Austria on 1 January 1995;
                                                                                — preclude a scheme such as that introduced by the Tiroler
(1) OJ C 166 of 31.5.1997.                                                           Grundverkehrsgesetz 1996;
                                                                            2. It is in principle for the national courts to assess whether a breach
                                                                                of Community law is sufficiently serious for a Member State to
                                                                                incur non-contractual liability vis-à-vis an individual;