Casis de Dijon Case and European Court of Justice Ruling

Overview

• Date of Ruling: 1978
• Court: European Court of Justice (ECJ)
• Focus: Free movement of goods, particularly Article 34 of the Treaty on the Functioning of the European Union (TFEU)

Article 34 TFEU

• Forbids all quantitative restrictions on imports
• Prohibits measures with an equivalent effect to quantitative restrictions

Case Background

• Product: Cassis de Dijon, a French blackcurrant liqueur (15-20% alcohol)
• Issue: A German importer, Rewe-Zentral, attempted to import Cassis de Dijon into Germany
• German Rule: Required fruit liqueurs to contain at least 25% alcohol
  • The rule applied to all fruit liqueurs irrespective of origin (indistinctly applicable)
  • Directly impacted the ability to sell Cassis de Dijon in Germany

Key Court Principles

1. Mutual Recognition Principle

• Applies where no product harmonization exists at the EU level
• Requires countries to accept each other’s product rules
• Implication: Products lawfully produced in one EU country should be sold under the same conditions in all other EU countries
• Case Impact: Rewe-Zentral should be allowed to sell French Cassis de Dijon in Germany under the same conditions

2. Rule of Reason Doctrine

• Mutual recognition does not apply if a country can justify its indistinctly applicable measure with a valid reason
• Valid reasons include:
  • Fiscal supervision
  • Protection of public health
  • Fairness of commercial transactions
  • Defense of the consumer
• Case Impact: The German government failed to convince the ECJ of a valid reason

Outcome

• Result: Cassis de Dijon could be lawfully sold in Germany
• Comparable Products: French Calvados (40% alcohol), Italian Limoncello (27% alcohol)

Conclusion

• The Casis de Dijon ruling is pivotal in understanding European Union law, particularly regarding free movement of goods and non-discriminatory trade measures.

Additional Resources: Visit www.nasscom or follow Dr. Leonard on Facebook at facebook.com/drLeonard.