Criminal proceedings against Henri Roelstraete. [1985] EUECJ R-116/84 (5 June 1985)

Criminal proceedings against Henri Roelstraete. [1985] EUECJ R-116/84 (5 June 1985)

Legislation fixing a maximum gross profit margin for retail sale of beef, veal, and pigmeat that incorporates import costs constitutes a measure equivalent to a quantitative restriction, contrary to Article 30 EEC Treaty and relevant regulations. Inclusion of supply costs may affect the distribution network and...

Source-derived case information.

Citation
[1985] EUECJ R-116/84
Parties
Accused: Henri Roelstraete; Intervener: Belgian Government; Intervener: European Commission
Jurisdiction
European Union
Judgment Date
05 June 1985
Procedural Posture
Preliminary Ruling / Reference From Cour D'appel De Bruxelles in Criminal Proceedings
Outcome
Preliminary ruling issued; national legislation found incompatible with EEC law if margin incorporates import or supply costs.
Legal Topics
Free Movement of Goods, Quantitative Restrictions, Retail Price Controls, Profit Margin Regulation, Market Organization
European Union Law Competition Law Criminal Law Free Movement of Goods Quantitative Restrictions Retail Price Controls Profit Margin Regulation Market Organization

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Parties

Henri Roelstraete

Accused

Belgian Government

Intervener

European Commission

Intervener

Procedural Posture

Preliminary Ruling / Reference From Cour D'appel De Bruxelles in Criminal Proceedings

Legal Issues

  1. 1 Compatibility of national legislation fixing maximum gross profit margin for retail sale of beef, veal, and pigmeat with EEC regulations
  2. 2 Whether inclusion of import and supply costs in profit margin constitutes a quantitative restriction

Ratio Decidendi

Legislation fixing a maximum gross profit margin for retail sale of beef, veal, and pigmeat that incorporates import costs constitutes a measure equivalent to a quantitative restriction, contrary to Article 30 EEC Treaty and relevant regulations. Inclusion of supply costs may affect the distribution network and price mechanisms, rendering such legislation incompatible if it impedes fair remuneration or intra-community trade. Only marketing costs at the consumer sale stage may be included, provided the margin is not arbitrary and ensures fair remuneration.

Court Disposition

Preliminary ruling issued; national legislation found incompatible with EEC law if margin incorporates import or supply costs.

Orders

  • Legislation prohibiting retailers from selling above wholesale price plus maximum gross profit margin covering import costs is contrary to Article 30 EEC Treaty and relevant regulations.
  • Legislation is incompatible if supply costs are incorporated and distribution networks are affected.