Operation of an urban tourist bus line based on the principle of free establishment enshrined by the Treaty on the functioning of the European Union

The Court of Justice of the European Union has confirmed that legislation on cabotage operations by bus or coach based on the principle of freedom to provide services only concerns the situations targeted by the regulations in question. Conversely, Article 49 TFEU that lays down the principle of freedom of establishment does apply. It is opposed to State regulations that impose prior establishment on the national territory to authorize the operation of a local tourist service. It is not opposed to requiring prior authorization for this type of service as long as the authorization is not based on overly discretionary procedures such as “the reduced profitability of a competing undertaking which has been authorized to operate a service which is partially or entirely identical to the one applied for, on the sole basis of the statements of that competing undertaking”.

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