## Facts

- The case concerns the validity of Directive 2003/33, which imposed a comprehensive ban on tobacco advertising and sponsorship in the EU across various media, such as print, radio, and the internet.
- Germany challenged the Directive, contending it was primarily aimed at protecting public health, an area where EU powers are limited.
- The European Court of Justice (ECJ) examined whether the Directive was a valid exercise of EU legislative power under Article 95 EC (now Article 114 TFEU), which permits harmonization measures for the internal market.
- The Directive was intended to remove obstacles to the free movement of goods and services, and address distortions of competition within the internal market, caused by varying national laws on tobacco advertising.
- The Court also considered the proximity between the Directive’s aim to improve internal market conditions and its potential public health benefits.

## Issues

1. Whether Directive 2003/33 was validly adopted on the basis of Article 95 EC, given its significant public health effects.
2. Whether the Directive’s restrictions on tobacco advertising and sponsorship exceeded what was necessary to achieve the objective of harmonizing the internal market.
3. Whether the EU exceeded its competence by using internal market legal bases for measures that primarily serve public health aims.
4. Whether the Directive respected the proportionality principle, particularly concerning any limitations of fundamental rights such as freedom of expression.

## Decision

- The ECJ held that Directive 2003/33 was validly adopted under Article 95 EC, since its primary aim was to remove internal market barriers caused by divergent national tobacco advertising rules.
- The Court recognized the Directive’s public health benefits, but emphasized that such secondary effects did not preclude use of Article 95 EC as a legal basis when the primary objective was genuine market harmonization.
- The ECJ found that differences in national advertising laws could impede the free movement of goods and cross-border advertising services, thus justifying EU-level action.
- The Court affirmed that measures taken under Article 95 EC with public health implications must comply with the proportionality principle—being both suitable and necessary for their purpose.
- The ban was found to be proportionate and not to go beyond what was necessary to achieve its internal market objectives.
- The ECJ clarified that harmonization measures can pursue public health effects provided these are ancillary to the main internal market purpose.

## Legal Principles

- Article 95 EC (now Article 114 TFEU) permits harmonization of national laws if disparities hinder the establishment or functioning of the internal market.
- EU measures under Article 95 EC may produce public health effects, but must primarily seek to improve internal market conditions.
- The proportionality principle requires that EU legislation must be appropriate to its objective and not exceed what is necessary.
- Public health benefits do not invalidate the choice of internal market legal bases when genuine market harmonization is at stake.
- The requirement to ensure fundamental rights, including freedom of expression, are respected in implementing such measures.

## Conclusion

This case defined clear limits and criteria for EU legislative action in areas touching both the internal market and public health, confirming that harmonization to remove barriers created by differing national laws is permissible even if such actions yield public health benefits, provided the primary objective relates to internal market improvement and the measures are proportionate.

Germany v Parliament and Council (Case C-380/03) [2006] ECR I-11573