An analysis of the effect of monopolies on the freedom to provide services with reference to the liberalisation in the e-communications industry and recent developments in the e-gaming industry

Abstract

The free movement of services requires the removal of restrictions on the provision of services between Member States whenever a cross-border element is present. Movement of services may also occur without the provider or the recipient moving. Monopolies are deemed to be interference to the free movement of services and the freedom of establishment in principle even though certain derogations are allowed. This thesis will first deal with a brief overview of the freedom to provide services cross-border and the right of establishment together with the effects that monopolies have on these freedoms. Consequently, reference to the e-communications sector is undertaken. This industry was previously heavily monopolised however through a gradual process of liberalisation, state monopolies were replaced by a regulatory framework that builds on principles of EU competition law. In the third chapter, an analysis of the e-gaming industry which is another closely connected sector of recent development is undertaken. While this sector is mainly dominated by monopolies, recent developments are showing a trend towards gradual liberalisation. This chapter will analyse the ECJ's judgements in the gaming sector together with the justifications brought forth by the state-controlled monopolies in favour of prohibition of liberalisation of e-gaming. The fourth chapter deals with an overview of certain selected Member State jurisdictions. This study examines the gradual liberalisation of the gaming industry in such countries such as France and Italy in contrast to the protectionist measures and attempts to maintain the monopoly in Germany at Federal level. After an analysis of the latter two sectors, the thesis concludes that while the e communications industry is in a process of extensive liberalisation this can not be said to have occurred to the same degree in the e-gaming sector. This might be due to the different outlook that the Member States together with the ECJ and Commission have towards e-gaming and e-communications. Practical solutions that can be adopted to solve the current state of affairs in the e-gaming sector are also discussed.