CNA Ambulanti: "We won", the ruling of the EU Court overturns Directive 2006/123/EC. Now it's up to the Municipalities to carry out new reconnaissance

On CNA Street vendors the interpretation of the Judgment of the EU Court (third section) of 20 April 2023.

Directive 2006/123/EC on services in the internal market in Article 12, paragraphs 1 and 2 provides for "unconditional and sufficiently precise nature of the obligation for Member States to apply an impartial and transparent selection procedure to potential candidates and of the prohibition on the automatic renewal of an authorization issued for a given activity..."

In point 2 the judgment of the EU Court, regarding the application of Article 12, paragraph 1, of Directive 2006/123/EC, ruled as follows: "must be interpreted as meaning that does not prevent to carry out an assessment of the scarcity of natural resources and available concessions by combining an abstract and general approach at national level with a case-by-case approach based on the analysis of the coastal territory of the municipality concerned".

Excerpt from sentence, point 2

"In light of the new interpretation of the supreme community judges, the Municipalities will be obliged to apply the sentence of the EU Court and disapply the plenary sentence n.17 and 18 - 2021" writes CNA AmbulantiThe issue is clear, specifies CNA, the approach to Directive 2006/123 must be interpreted as meaning that it does not prevent carrying out an assessment of the scarcity of natural resources and available concessions by combining an approach abstract and general at the national level with a case-by-case approach based on the analysis of the territory. 

"We said it from the beginning, specifies CNA Ambulanti, that the directive is not applicable to trade on public areas as an administration has the power to reduce or increase the number of concessions/authorizations only in its own territory; there is no shortage of natural resources, technical skills or usable ones, but rather the scarcity is attributable to generational turnover“, highlights CNA Ambulanti.

In essence and in a non-extensive manner, the Municipalities, specifies CNA Ambulanti, will be forced to do: 

  • an internal reconnaissance, for the mapping required by LEGISLATIVE DECREE 26 July 2023, n. 106;
  • an internal reconnaissance to quickly resolve the situation of uncertainty in the sector, which is blocking the progress of investments.

When they realize that out of 100% of the concessions/authorisations for trading on public areas issued, only just over 50% are still in use they will no longer be able to ban anything and there will be no AGCM, TAR or anything else that matters, emphasizes CNA Ambulanti.

Now the match will have to be played municipality by municipality. The CNA Ambulanti specifies that from now on both local authorities and in particular the Government must be appropriately made aware of this ruling by the Court, which will be forced to take a clear and coherent position also given the critical situation that the sector is going through in anticipation of the next Competition Law. 

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CNA Ambulanti: "We won", the ruling of the EU Court overturns Directive 2006/123/EC. Now it's up to the Municipalities to carry out new reconnaissance