Provision of services are possibly the most dynamic four freedoms from the Treaty of Rome due to the conception of what constitutes to being a service. The breadth of what the treaty article allows to be considered a service is why this area has been a victim of many debates in terms of case law development and legislative output. The courts have stated that the rights protected by Article 56 TFEU are actually wider than protection from discrimination on grounds of nationality residence. Article 56 is not solely concerned with economic activities, it actually expands into many fields such as music, sport and education, the list goes on.
Article 56 provides that: Restrictions on freedom to provide services within the Union shall be prohibited in respect of nationals of member states who are established in a MS other than that of the persons for whom the services are intended. The Europe parliament and council may extend the provisions to nationals of a third country who provided services and who are established within the Union.
Non Discrimination and Direct Effect – The rights created in Article 56 were originally understood in terms of the right of non-discrimination. Walrave and Koch –v- Association Union Cycliste Internationale . Two Dutch cyclists challenged the association’s rules that the ‘race pacemaker must have same nationality as the competitor’. AUCI argued: Art.56TFEU can only be invoked against M/S and public bodies, not sports associations. CJ: if so, this would obstruct FM – must be able to use Art.56 to challenge rules regulating employment and provision of services. Thus, Art.56 has horizontal direct effect