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Nadin (Joined Cases C-151/04 and C-152/04) [2005] ECR I-1120...

ResourcesNadin (Joined Cases C-151/04 and C-152/04) [2005] ECR I-1120...

Facts

  • The case involved Austrian authorities refusing to recognise Mr. Nadin’s qualifications as a ski instructor, preventing him from offering paid ski instruction.
  • The central question was whether providing ski instruction for remuneration constituted an “economic activity” within the meaning of Article 49 TFEU on freedom of establishment.
  • The dispute concerned the broader scope of who could claim protection under the EU’s free movement provisions.

Issues

  1. Whether providing ski instruction for pay constitutes an “economic activity” within the meaning of EU free movement rules.
  2. Whether the activity’s scale or occasional nature affects its status as “economic.”
  3. Whether non-traditional forms of remuneration exclude activities from the scope of protection under EU law.

Decision

  • The European Court of Justice held that an activity is “economic” if it is performed for remuneration and offered on the market.
  • The Court decided that even small-scale or occasional paid services qualify as “economic activity” if they are offered for remuneration and potentially compete in the market.
  • The Court clarified that the form or amount of remuneration does not negate the activity’s commercial character.
  • The Court’s interpretation ensured that both individuals and businesses, regardless of the scale of their operations, could invoke the protection of the EU’s free movement provisions if their activities meet the criteria.
  • “Economic activity” under the Treaty is defined by two central criteria: the provision of services for remuneration and the offering of such services on the market.
  • The scale of the activity is not determinative; small or occasional services for pay may still qualify.
  • The source or form of remuneration (monetary or non-monetary) does not exclude an activity from protection under free movement rules.
  • Activities that are integrated into the market and have the potential for competition are within the scope of protected economic activity.
  • Activities connected with the exercise of official authority are excluded from the scope of “economic activity.”

Conclusion

The ECJ’s judgment in Nadin clarified the definition of “economic activity” for the purposes of the EU free movement provisions, establishing that any service provided for remuneration and offered on the market—regardless of scale, frequency, or form of payment—falls within the scope of protection, thereby strengthening legal certainty for individuals and businesses operating within the internal market.

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