The European Commission suspends actions against Germany.
For years, Germany's strict gambling laws have clashed with the freedom to provide services within the European treaties. The European Commission had previously announced its intention to initiate legal action against the Federal Republic of Germany due to these conflicts. However, in a surprising turn of events, the Commission has now chosen to halt its efforts and withdraw from the issue altogether.
This decision not only impacts Germany, but also other member states with inadequate gambling regulations, such as the Netherlands, Hungary, and Poland. Having served as the "guardian of the treaties," the European Commission previously sought to encourage member states to adopt EU-compliant legislation in the online gambling sector. However, under Jean-Claude Juncker's leadership, the Commission is now discontinuing this plan and citing "changed priorities" as the reason. In the future, disputes between national laws and EU regulations will be resolved by national courts.
This news is a significant disappointment for critics of Germany's gambling laws, as they had previously based their arguments on the fact that the national regulations violate EU law. The Commission emphasizes that this decision is political, not legal, and does not imply a carte blanche for member states to maintain their restrictive gambling policies. However, organizations and companies who had hoped for EU intervention are likely to see their positions weakened.
Industry Expresses Disappointment
The freedom to provide services is one of the four fundamental freedoms of the European Union. It aims to remove trade barriers and enable companies to offer their services across the EU. Yet, it is often undermined by national regulations. For instance, German gambling laws primarily restrict online gambling and prefer state providers in the offline sector (like Lotto and Oddset). This hinders European companies in the German market and results in a legal gray zone for them. The European Commission has consistently criticized this situation and even threatened infringement proceedings if necessary. The Commission's decision to back away from this plan is leaving the industry bewildered:
"The actions of these member states severely restrict the freedom to provide services, which is supposed to be guaranteed by the EU treaties. By withdrawing, the European Commission is ignoring the necessity for coercive measures in this area, as it inherently transgresses borders and cannot be regulated solely at the national level." Statement by the Remote Gambling Association (RGA)
The European Commission cites its list of priorities published in 2015 as the reason for its decision. They plan to tackle infringement proceedings strategically and not in every instance. One might assume that online gambling is simply not important enough to warrant a referral to the Commission. It is intriguing to note that the Commission's list includes the creation of a "digital single market" as its second top priority. This is precisely what online gambling entails - a legislative framework applicable to all of Europe that industry, regulators, and customers can use as a guide. Instead, we now have a mishmash of regulations across member states that the Commission no longer views as its responsibility to unravel.
Online Gambling Remains Unaddressed
One could argue that the Commission has not been particularly proactive in resolving issues with unwilling member states in the past. Clive Hawkswood, the head of the RGA, sarcastically remarks about the closure of proceedings, saying, "We never had it, so we won't miss it." But he also warns that member states in breach of the agreement, like Germany, might feel encouraged by this move by the Commission.
Affected market participants still can seek legal recourse, even in European courts. Nevertheless, pursuing such a lengthy, costly process entails risks. Furthermore, the European Commission, once considered a powerful enforcer of EU principles, is no longer an ally for those advocating uniform regulation. The future of the common market is uncertain in light of this development.
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Source: www.onlinecasinosdeutschland.com
