Commission of the European Communities v Ireland.
Date: 1982-11-24
20 THE COMMISSION MAINTAINS THAT THE ' ' BUY IRISH ' '  CAMPAIGN AND THE MEASURES TAKEN TO PROSECUTE THE CAMPAIGN MUST BE REGARDED , AS A WHOLE , AS MEASURES ENCOURAGING THE PURCHASE OF DOMESTIC PRODUCTS ONLY . SUCH MEASURES ARE SAID TO BE CONTRARY TO THE OBLIGATIONS IMPOSED ON THE MEMBER STATES BY ARTICLE 30 . THE COMMISSION REFERS TO ARTICLE 2 ( 3 ) ( K ) OF COMMISSION DIRECTIVE NO 70/50/EEC OF 22 DECEMBER 1969 , BASED ON THE PROVISIONS OF ARTICLE 33 ( 7 ), ON THE ABOLITION OF MEASURES WHICH HAVE AN EFFECT EQUIVALENT TO QUANTITATIVE RESTRICTIONS ON IMPORTS AND ARE NOT COVERED BY OTHER PROVISIONS ADOPTED IN PURSUANCE OF THE EEC TREATY ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1970 ( I ), P . 17 ). ACCORDING TO ARTICLE 2 ( 3 ) ( K ), MEASURES WHICH ENCOURAGE THE PURCHASE OF DOMESTIC PRODUCTS ONLY MUST BE REGARDED AS CONTRARY TO THE PROHIBITIONS CONTAINED IN THE TREATY .
21 THE IRISH GOVERNMENT MAINTAINS THAT THE PROHIBITION AGAINST MEASURES HAVING AN EFFECT EQUIVALENT TO QUANTITATIVE RESTRICTIONS IN ARTICLE 30 IS CONCERNED ONLY WITH ' ' MEASURES ' ' , THAT IS TO SAY , BINDING PROVISIONS EMANATING FROM A PUBLIC AUTHORITY . HOWEVER , NO SUCH PROVISION HAS BEEN ADOPTED BY THE IRISH GOVERNMENT , WHICH HAS CONFINED ITSELF TO GIVING MORAL SUPPORT AND FINANCIAL AID TO THE ACTIVITIES PURSUED BY THE IRISH INDUSTRIES .
22 THE IRISH GOVERNMENT GOES ON TO EMPHASIZE THAT THE CAMPAIGN HAS HAD NO RESTRICTIVE EFFECT ON IMPORTS SINCE THE PROPORTION OF IRISH GOODS TO ALL GOODS SOLD ON THE IRISH MARKET FELL FROM 49.2% IN 1977 TO 43.4% IN 1980 .
23 THE FIRST OBSERVATION TO BE MADE IS THAT THE CAMPAIGN CANNOT BE LIKENED TO ADVERTISING BY PRIVATE OR PUBLIC UNDERTAKINGS , OR BY A GROUP OF UNDERTAKINGS , TO ENCOURAGE PEOPLE TO BUY GOODS PRODUCED BY THOSE UNDERTAKINGS . REGARDLESS OF THE MEANS USED TO IMPLEMENT IT , THE CAMPAIGN IS A REFLECTION OF THE IRISH GOVERNMENT ' S CONSIDERED INTENTION TO SUBSTITUTE DOMESTIC PRODUCTS FOR IMPORTED PRODUCTS ON THE IRISH MARKET AND THEREBY TO CHECK THE FLOW OF IMPORTS FROM OTHER MEMBER STATES .
24 IT MUST BE REMEMBERED HERE THAT A REPRESENTATIVE OF THE IRISH GOVERNMENT STATED WHEN THE CAMPAIGN WAS LAUNCHED THAT IT WAS A CAREFULLY THOUGHT-OUT SET OF INITIATIVES CONSTITUTING AN INTEGRATED PROGRAMME FOR PROMOTING DOMESTIC PRODUCTS ; THAT THE IRISH GOODS COUNCIL WAS SET UP AT THE INITIATIVE OF THE IRISH GOVERNMENT A FEW MONTHS LATER ; AND THAT THE TASK OF IMPLEMENTING THE INTEGRATED PROGRAMME AS IT WAS ENVISAGED BY THE GOVERNMENT WAS ENTRUSTED , OR LEFT , TO THAT COUNCIL .
25 WHILST IT MAY BE TRUE THAT THE TWO ELEMENTS OF THE PROGRAMME WHICH HAVE CONTINUED IN EFFECT , NAMELY THE ADVERTISING CAMPAIGN AND THE USE OF THE ' ' GUARANTEED IRISH ' '  SYMBOL , HAVE NOT HAD ANY SIGNIFICANT SUCCESS IN WINNING OVER THE IRISH MARKET TO DOMESTIC PRODUCTS , IT IS NOT POSSIBLE TO OVERLOOK THE FACT THAT , REGARDLESS OF THEIR EFFICACITY , THOSE TWO ACTIVITIES FORM PART OF A GOVERNMENT PROGRAMME WHICH IS DESIGNED TO ACHIEVE THE SUBSTITUTION OF DOMESTIC PRODUCTS FOR IMPORTED PRODUCTS AND IS LIABLE TO AFFECT THE VOLUME OF TRADE BETWEEN MEMBER STATES .
26 THE ADVERTISING CAMPAIGN TO ENCOURAGE THE SALE AND PURCHASE OF IRISH PRODUCTS CANNOT BE DIVORCED FROM ITS ORIGIN AS PART OF THE GOVERNMENT PROGRAMME , OR FROM ITS CONNECTION WITH THE INTRODUCTION OF THE ' ' GUARANTEED IRISH ' '  SYMBOL AND WITH THE ORGANIZATION OF A SPECIAL SYSTEM FOR INVESTIGATING COMPLAINTS ABOUT PRODUCTS BEARING THAT SYMBOL . THE ESTABLISHMENT OF THE SYSTEM FOR INVESTIGATING COMPLAINTS ABOUT IRISH PRODUCTS PROVIDES ADEQUATE CONFIRMATION OF THE DEGREE OF ORGANIZATION SURROUNDING THE ' ' BUY IRISH ' '  CAMPAIGN AND OF THE DISCRIMINATORY NATURE OF THE CAMPAIGN .
27 IN THE CIRCUMSTANCES THE TWO ACTIVITIES IN QUESTION AMOUNT TO THE ESTABLISHMENT OF A NATIONAL PRACTICE , INTRODUCED BY THE IRISH GOVERNMENT AND PROSECUTED WITH ITS ASSISTANCE , THE POTENTIAL EFFECT OF WHICH ON IMPORTS FROM OTHER MEMBER STATES IS COMPARABLE TO THAT RESULTING FROM GOVERNMENT MEASURES OF A BINDING NATURE .
28 SUCH A PRACTICE CANNOT ESCAPE THE PROHIBITION LAID DOWN BY ARTICLE 30 OF THE TREATY SOLELY BECAUSE IT IS NOT BASED ON DECISIONS WHICH ARE BINDING UPON UNDERTAKINGS . EVEN MEASURES ADOPTED BY THE GOVERNMENT OF A MEMBER STATE WHICH DO NOT HAVE BINDING EFFECT MAY BE CAPABLE OF INFLUENCING THE CONDUCT OF TRADERS AND CONSUMERS IN THAT STATE AND THUS OF FRUSTRATING THE AIMS OF THE COMMUNITY AS SET OUT IN ARTICLE 2 AND ENLARGED UPON IN ARTICLE 3 OF THE TREATY .
29 THAT IS THE CASE WHERE , AS IN THIS INSTANCE , SUCH A RESTRICTIVE PRACTICE REPRESENTS THE IMPLEMENTATION OF A PROGRAMME DEFINED BY THE GOVERNMENT WHICH AFFECTS THE NATIONAL ECONOMY AS A WHOLE AND WHICH IS INTENDED TO CHECK THE FLOW OF TRADE BETWEEN MEMBER STATES BY ENCOURAGING THE PURCHASE OF DOMESTIC PRODUCTS , BY MEANS OF AN ADVERTISING CAMPAIGN ON A NATIONAL SCALE AND THE ORGANIZATION OF SPECIAL PROCEDURES APPLICABLE SOLELY TO DOMESTIC PRODUCTS , AND WHERE THOSE ACTIVITIES ARE ATTRIBUTABLE AS A WHOLE TO THE GOVERNMENT AND ARE PURSUED IN AN ORGANIZED FASHION THROUGHOUT THE NATIONAL TERRITORY .
30 IRELAND HAS THEREFORE FAILED TO FULFIL ITS OBLIGATIONS UNDER THE TREATY BY ORGANIZING A CAMPAIGN TO PROMOTE THE SALE AND PURCHASE OF IRISH GOODS WITHIN ITS TERRITORY .