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EC Consumer Law and Services of General Interest - Challenges and the Future

This outline examines the regulatory approach of EC consumer law and the regulation of services of general interest. It highlights the characteristics of EC consumer law, the EC regulation of services of general interest, and the universal service obligations. It discusses the risks and challenges of the internal market approach and emphasizes the importance of formulating precise and enforceable universal service requirements.

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EC Consumer Law and Services of General Interest - Challenges and the Future

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  1. Consumer Law and Services of General Interest Peter Rott, Bremen

  2. Outline • Introduction • The regulatory approach of EC consumer law • EC regulation of services of general interest • Conclusions

  3. Services of general interest • Mainly the big network industries: energy, telecommunication, postal services, public transport • 1980s until now: liberalisation and privatisation • From public law to private law • Numerous problems for users/consumers • Targeted by the current EC Consumer Policy Strategy

  4. Characteristics of EC consumer law • Focus on the so-called average consumer • Information paradigm as far as the protection of economic interest is concerned • Little use of prohibitions • Trend towards total harmonisation, not always at a high level of consumer protection • Pressure on national prohibitions

  5. EC regulation of services of general interest • Internal market law including consumer protection • Universal service obligations: Guaranteed access for everyone, whatever the economic, social or geographical situation, to a service of a specified quality at an affordable price • Regulatory mix, see eg Art. 3 of Directive 2003/54/EC

  6. Internal market approach • Breaking up monopolies – interconnectivity and transmission, controlled by regulators • Information obligations • Right to change supplier • Consumer‘s right to transmission of third party‘s supply

  7. Universal service obligations • No overarching competence, in particular not Art. 16 EC • Art. II-96 of the new Constitution is stalled • Sector-specific approach under the internal market competence: • Dir. 2002/22/EC – telecommunications • Dir. 97/67/EC – postal services • Dir. 2003/54/EC – electricity • Dir. 2003/55/EC – natural gas

  8. Universal service elements • Access to services: Right to a contract, vague restrictions to termination • Affordability: All users should have affordable access, comparable conditions, but: no price control mechanisms in EC law • Quality • Continuity

  9. What is the future? • Risks of the internal market approach: • Focus on those citizens that are of interest for the suppliers • Restrictions on national welfare policies (total harmonisation) • Therefore need for universal service obligations (human rights, citizens‘ rights)

  10. Conclusion • Consumer law is important, and privileges for providers of services of general interest must be abolished • However, the real challenge lies in formulating precise and enforceable universal service requirements that guarantee access for everyone, whatever the economic, social or geographical situation, to a service of a specified quality at an affordable price

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