## Facts

- J. Nold, a German coal and construction-materials wholesaler, historically obtained coal through direct supply arrangements in the Ruhr sector.
- Under the ECSC Treaty, the Commission had authority to approve concentrations and related trading rules in the coal market.
- On December 21, 1972, the Commission authorized new terms of business for Ruhrkohle AG that rationalized coal distribution and tightened conditions for wholesalers’ entitlement to direct supplies.
- Nold alleged the new rules impaired its ability to obtain direct supplies, harming its competitive position and profitability.
- Nold sought annulment of the Commission decision, arguing (1) unlawful restriction of competition under Article 66 ECSC and (2) infringement of fundamental rights, including property and freedom to pursue a trade or profession.

## Issues

1. Whether Article 66 ECSC permitted the Commission to authorize trading rules restricting wholesalers’ entitlement to direct coal supplies to rationalize distribution, provided the rules were applied equally to all concerned.
2. Whether the authorized restrictions unlawfully infringed fundamental rights recognized in Community law, including property and freedom to engage in a trade or profession, by impairing Nold’s commercial position.

## Decision

- The Court dismissed the application and upheld the Commission decision.
- The Commission may authorize trading rules restricting entitlement to direct fuel supplies to rationalize distribution, so long as the rules apply in the same manner to all undertakings concerned.
- Fundamental rights are part of the general principles of Community law, informed by Member States’ common constitutional traditions and relevant international human-rights treaties.
- Property rights and freedom to pursue a trade or profession are not absolute and may be limited by measures serving the general interest and Community objectives, provided the essential content of the rights is not impaired.
- The challenged rules did not deprive Nold of the substance of its property or economic freedom; they affected commercial opportunities rather than protected core rights.

## Legal Principles

- Fundamental rights are integral to the general principles of Community law and are protected by judicial review.
- The content of Community fundamental rights is informed by constitutional traditions common to Member States and by international human-rights treaties as interpretive guidelines.
- Rights of property and occupational freedom may be restricted in the public interest and to achieve Community objectives, provided the essential content of the rights remains intact.
- Fundamental-rights guarantees do not extend to mere commercial interests or market opportunities; exposure to market uncertainty is part of economic activity.
- Under Article 66 ECSC, the Commission may approve restrictive trading rules tied to rationalization objectives if applied uniformly and without discrimination.

## Conclusion

The Court upheld the Commission’s authorization of coal distribution rules and confirmed that Community fundamental rights, derived from shared constitutional traditions and international instruments, permit public-interest limitations that leave the essential content of property and occupational freedom intact and do not protect mere commercial expectations.


J. Nold v. Commission of the European Communities, Case 4/73, 1974 E.C.R. 491 (C.J. May 14, 1974)