PRESS RELEASE No 61/01
29 November 2001
Judgment of the Court of Justice in Case C-17/00
François De Coster v Collège des bourgmestre et échevins de Watermael
LEVY OF A MUNICIPAL TAX APPLYING ONLY TO SATELLITE DISHES IS
DECLARED CONTRARY TO THE FREEDOM TO PROVIDE SERVICES
The tax regulation adopted by a Belgian municipality penalises programmes transmitted
from other Member States and that barrier to trade cannot be justified by concern for the
protection of the environment as argued by the municipality
The "tax regulation" was abolished with effect from 1 January 1999 after the European
Commission had questioned its compliance with Community law.
Mr De Coster disputed the levy of that tax for 1998 before the competent Belgian authority
(the Collège juridictionnel de la Région de Bruxelles-Capitale), which asked the Court of Justice
for a preliminary ruling on the compatibility of the tax with Community law.
The municipality relied on grounds linked to the protection of the urban environment, namely
the need to restrict the proliferation of dishes in its area. Mr De Coster complained that the tax
was an obstacle to the free reception of television programmes from other Member Sates and
created disparity between cable broadcasting companies and those that broadcast via satellite.
The Court held that although direct taxation does not fall within the scope of the Community, the
Member States must nevertheless exercise their powers in a manner consistent with Community
law and especially with the freedom to provide services.
The broadcast and transmission of television signals comes within the rules relating to the
provision of services. However, the freedom to provide services implies that any national rules
which have the effect of impeding further the activities of operators established in another
Member State or making the provision of services between Member States more difficult than
the provision of services purely within one Member State must be abolished.
The Court found that the introduction of such a tax actually imposes a levy on the reception of
television programmes transmitted by satellite which does not apply to the reception of
programmes transmitted by cable. Furthermore, as it appears that unlike the Belgian channels
(which enjoy unlimited access to cable), the number of channels televised from other MemberStates that can be transmitted via cable is limited, the Court stated that the tax in question
therefore had the effect of dissuading the residents of that municipality from picking up
programmes broadcast by satellite from other Member States. In the same way, satellite
operators established in other Member States are at a disadvantage compared to cable distributors
operating in Belgium.
As to the need to protect the environment, relied on by the Belgian municipal authorities, the
Court stated that it could be achieved by other methods less restrictive of the freedom to provide
services, such as requirements concerning the size or position of the dishes.
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