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Universal Service Obligations: Fulfilling New Generations of Services of General Economic Interest

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Developments in Services of General Interest

Part of the book series: Legal Issues of Services of General Interest ((LEGAL))

Abstract

This chapter charts the development of universal service obligations (USOs) in the EU liberalisation programme. Davies and Szyszczak see an expanding role for the concept of USOs in the future development of the EU, from a social perspective as well as a commercial perspective. The authors note that whereas a Member State has a wide competence to define a SGEI, this is no longer the case when a USO is found in liberalising legislation. The authors question whether the use of USOs is a temporary device and whether USOs will survive if, and when, there is full market liberalisation of a sector. Their chapter charts the various stages of the evolution of an EU concept of a USO and their analysis concludes that far from the gradual demise of the USO in the liberalisation process, they see the concept changing, evolving and expanding in its role of protecting the consumer–citizen interest in the Internal Market. A second focus of this chapter is to place the consumer–citizen at the heart of the USO. While academics have argued that USOs have a role to play in protecting the vulnerable consumer contributing to the evolution of a social European private law Davies and Szyszczak argue that USOs have a much wider remit in contributing not only to the inclusiveness of EU society but also the effectiveness of the benefits brought by an Internal Market. They argue that by placing the consumer–citizen of EU law at the heart of a complex web of networked relationships several new issues emerge of governance of the processes and outcomes through which consumer, competition and integration issues are mediated.

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Notes

  1. 1.

    Monti 2010, p. 74.

  2. 2.

    Ibid., at p.73.

  3. 3.

    See Szyszczak 2001; Neergaard 2008.

  4. 4.

    Neergaard 2009, p. 39, citing as an example Commission, Communication from the Commission. Services of General Interest in Europe COM(2000) 580, 19 January 2001 and the Commission Green Paper on Services of General Interest, COM(2003) 270.

  5. 5.

    ECJ, Case C-393/92 Municipality of Almelo and Others v. Energiebedrijf IJsselmij [1994] ECR I-1477, paras 47–48.

  6. 6.

    Analysis of the Implications of the Lisbon Treaty on Services of General Interest and Proposals for Implementation.

  7. 7.

    Discussion Paper drawn up by European Experts 2008, pp. 41–42, looking at the application of the concept of SGEIs for liberalising network industries.

  8. 8.

    COM(2007) 726 at p.10.

  9. 9.

    See for example, Sauter 2008, p. 179.

  10. 10.

    Neergaard 2009, p. 44.

  11. 11.

    Contrast with SGEIs where the Member States retain competence to define a SGEI and have some leeway in the funding arrangements provided that they follow the conditions in ECJ, Case C-280/00 Altmark [2003] ECR I-7747 or satisfy the proportionality of the funding to the Commission.

  12. 12.

    CFI/GC, Case T- 289/03 BUPA [2008] ECR II-741.

  13. 13.

    ECJ, Case C-280/00 Altmark [2003] ECR I-7747.

  14. 14.

    See Chap. 2 by Bauby. For a discussion of the different historical, political, and cultural influences on the evolution of public services in Europe see Prosser 2005.

  15. 15.

    Davies 2010.

  16. 16.

    OJ 2001 C 17/4, 19 January 2001, Annex II, p. 23.

  17. 17.

    Szyszczak 2007, p. 243.

  18. 18.

    Micklitz 2009, p. 10.

  19. 19.

    Teubner 1998, p. 411.

  20. 20.

    Micklitz 2009, p. 1.

  21. 21.

    Ibid.

  22. 22.

    Szyszczak 2009a, b.

  23. 23.

    Directive 88/301/EEC of 16 May 1988 on competition in the markets in telecommunications terminal equipment, OJ 1998 L 131/73, and particularly recital 2 of the Preamble.

  24. 24.

    Ibid., Articles 2, 3 and 6.

  25. 25.

    Directive 91/263/EEC of 29 April 1991 on the approximation of the laws of the Member States concerning telecommunications terminal equipment, including the mutual recognition of their conformity, OJ 1991 L 128/1.

  26. 26.

    ECJ, Case C-221-94 Commission v. Luxemburg [1996] ECR I-5669, para 21.

  27. 27.

    Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision, OJ 1990 L 192/1.

  28. 28.

    Directive 94/46/EC of 13 October 1994 amending Directive 88/301/EEC and Directive 90/388/EEC in particular with regard to satellite communications, OJ 1994 L 268/15.

  29. 29.

    Directive 95/51/EC of 18 October 1995 amending Directive 90/388/EEC with regard to the abolition of the restrictions on the use of cable television networks for the provision of already liberalized telecommunications services, OJ 1995 L 256/49.

  30. 30.

    Directive 96/19/EC of 13 March 1996 amending Directive 90/388/EEC with regard to the implementation of full competition in telecommunications markets, OJ 1996 L 074/13, recital 4 of the preamble. Special or exclusive rights for the provision of voice telephony had hitherto been maintained by Article 2 of Directive 90/388/EEC on competition in the markets for telecommunications services, OJ 1990 L 192/10. .

  31. 31.

    Ibid.

  32. 32.

    Directive 98/10/EC on the application of open network provision (ONP) to voice telephony and on universal service for telecommunications in a competitive environment, OJ 1998 L 101/24, Article 3(1).

  33. 33.

    Ibid.

  34. 34.

    Directive 2002/22/EC on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive), OJ 2002 L 108/51 [emphasis added].

  35. 35.

    Ibid., Article 3.

  36. 36.

    Ibid., Article 17.

  37. 37.

    Ibid., Article 11 and Annex III.

  38. 38.

    Ibid., Articles 13, 14 and 17(4).

  39. 39.

    Ibid., Articles 7 and 9(3).

  40. 40.

    Ibid., Article 34.

  41. 41.

    Directive 97/67/EC on common rules for the development of the internal market of Community postal services and the improvement of quality of service, OJ 1998 L 15/14.

  42. 42.

    Ibid., Article 7(1).

  43. 43.

    Ibid., Articles 1 and 22.

  44. 44.

    Ibid., recital 39 of the Preamble with Article 22.

  45. 45.

    Ibid., Articles 16, 17 and 18.

  46. 46.

    Ibid., Articles 12–15.

  47. 47.

    Ibid., Article 19.

  48. 48.

    Directive 2002/39/EC amending Directive 97/67/EC with regard to the further opening to competition of Community postal services, OJ 2002 L 176/21, Article 1(1).

  49. 49.

    Ibid., recital 14 of the Preamble.

  50. 50.

    Directive 2008/6/EC amending Directive 97/67/EC with regard to the full accomplishment of the internal market of Community postal services, OJ 2008 L 052/3, recital 12 of the preamble and Article 1(8).

  51. 51.

    Ibid., Article 1.

  52. 52.

    Directive 2003/55/EC concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC, OJ 2003 L 176/57, Article 3.

  53. 53.

    Directive 2003/54/EC concerning common rules for the internal market in electricity and repealing Directive 96/92/EC, OJ 2003 L 176/37.

  54. 54.

    Directive 88/301/EEC of 16 May 1988 on competition in the markets in telecommunications terminal equipment, OJ 1998 L 131/73, Article 6.

  55. 55.

    Davies 2009, p. 245.

  56. 56.

    ERGEG and CEER, ‘3rd energy package and creating an effective EU Agency (ACER) in the consumer’s interest’ (2008) Fact Sheet Reference No. FS-08-01, Available at: http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/NEWS_ARCHIVE/FS-08-01_CEER-ERGEG_EnergyAgency_2008-02-20.pdf (last accessed on 25 June 2010).

  57. 57.

    Comprising, Regulation (EC) No 713/2009 establishing an Agency for the Cooperation of Energy Regulators; Regulation (EC) No 714/2009 on conditions for access to the network for cross-border exchanges in electricity; Regulation (EC) No 715/2009 on conditions for access to the natural gas transmission networks; Directive 2009/72/EC concerning common rules for the internal market in electricity, and Directive 2009/73/EC concerning common rules for the internal market in natural gas.

  58. 58.

    Commission (EC), ‘Draft proposal for a Directive concerning common rules for the internal market in electricity’ (Communication) COM (2007) 528 final, 19 September 2007, 18.

  59. 59.

    Ibid.

  60. 60.

    Press Release, ‘Citizens’ Energy Forum’, MEMO/09/429, 30 September 2009, http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/429&format=HTML&aged=0&language=EN&guiLanguage=fr (last accessed on 25 June 2010) at p. 2.

  61. 61.

    Directive 2009/73/EC concerning common rules for the internal market in natural gas, Article 3(12) and Directive 2009/72/EC concerning common rules for the internal market in electricity, Article 3(16).

  62. 62.

    Press Release, ‘Citizens’ Energy Forum’, MEMO/09/429, 30 September 2009, http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/429&format=HTML&aged=0&language=EN&guiLanguage=fr (last accessed on 25 June 2010) at p. 2.

  63. 63.

    Directive 2009/72/EC concerning common rules for the internal market in electricity, Article 3(3).

  64. 64.

    Directive 2009/72/EC concerning common rules for the internal market in electricity, Article 6 and, similarly Directive 2009/73/EC concerning common rules for the internal market in natural gas, Article 7.

  65. 65.

    Directive 2009/72/EC concerning common rules for the internal market in electricity, Article 37(p) and (j); Directive 2009/73/EC concerning common rules for the internal market in natural gas, Article 41 (q) and (j).

  66. 66.

    Ibid., Articles 3(12) and 3(9) respectively.

  67. 67.

    Ibid., Articles 3(13) and 3(9) respectively.

  68. 68.

    Ibid., Articles 3(7) and 3(3) respectively.

  69. 69.

    Ibid., respectively Annex 1(i) and Annex 1(f) of both Directives [emphasis added].

  70. 70.

    Directive 2009/136/EC amending Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and services, Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (Text with EEA relevance), OJ 2009 L 337/11.

  71. 71.

    Directive 2002/22/EC on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive), OJ 2002 L 108/51, Articles 1(1), 6(1), 7(1), 21(3)(f), 23(a)(1), 26(4), 27(a)(2) and 31(1), as amended.

  72. 72.

    Ibid., Article 20(1), as amended.

  73. 73.

    Ibid., Articles 11(4) and 22(3), as amended.

  74. 74.

    Ibid., Article 20(2), as amended.

  75. 75.

    Ibid., Article 1(3), as amended.

  76. 76.

    Ibid., Article 27(a), as amended.

  77. 77.

    Ibid., Article 30(4), (5) and (6), as amended.

  78. 78.

    Ibid., Article 33(1) as amended, together with Recital 49 of Directive 2009/136/EC.

  79. 79.

    Teubner 2000.

  80. 80.

    See for example, Micklitz 2009.

  81. 81.

    Thatcher and Coen 2008, p. 31.

  82. 82.

    Micklitz 2009, p. 11.

  83. 83.

    Szyszczak 2007, pp. 244–245.

  84. 84.

    See Davies 2009.

  85. 85.

    Commission (EC), ‘Services of general interest, including social services of general interest: a new European commitment’ (Communication) COM(2007) 725 final, 20 November 2007, pp. 10–11 [emphasis added].

  86. 86.

    Micklitz 2009, p. 16.

  87. 87.

    See for example, Van de Gronden and Szyszczak 2011, where the role of solidarity is analysed to cement the tensions between national health care systems and the emerging EU regulation of many health care issues.

  88. 88.

    Monti 2010, p. 75.

  89. 89.

    Again in Monti 2010, p. 75, a proposal is made for a proposal, possibly using Article 14 TFEU as the legal base, for a regulation ensuring that all citizens are entitled to a number of basic banking services.

  90. 90.

    See Szyszczak 2009, p. 191.

  91. 91.

    Art. 3(11), Dir. 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (hereafter, E-directive) and Art. 3(8), Dir. 2009/73/EC concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC.

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Authors and Affiliations

  1. Department of Law, School of Social Sciences, The University of Northampton, Park Campus, Boughton Green Road, Northampton, NN2 7AL, UK

    Jim Davies

  2. University of Leicester, Barrister, Littleton Chambers, London, LE1 7RH, UK

    Erika Szyszczak

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  1. Jim Davies
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  2. Erika Szyszczak
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Correspondence to Jim Davies .

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Editors and Affiliations

  1. , School of Law, University of Leicester, University Road, Leicester, LE1 7RH, United Kingdom

    Erika Szyszczak

  2. , School of Social Sciences, Department of, University of Northampton, Park Campus, Boughton Green Road, Northampton, NN2 7AL, United Kingdom

    Jim Davies

  3. , Department of Private Law, University of Oslo, Domus Media, Karl Johans gate 47, Oslo, 0162, Norway

    Mads Andenæs

  4. , Department of Private Law, University of Oslo, Domus Exilii, St. Olavs gate 23, Oslo, 0166, Norway

    Tarjei Bekkedal

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Davies, J., Szyszczak, E. (2011). Universal Service Obligations: Fulfilling New Generations of Services of General Economic Interest. In: Szyszczak, E., Davies, J., Andenæs, M., Bekkedal, T. (eds) Developments in Services of General Interest. Legal Issues of Services of General Interest. T.M.C. Asser Press. https://doi.org/10.1007/978-90-6704-734-0_7

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