''Höfner and Elser v Macrotron GmbH'' (1991
C-41/90
was a significant

EU competition law European competition law is the competition law in use within the European Union. It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not crea ...

case, concerning the definition of an "undertaking" and abuse of a dominant position.E McGaughey, ''A Casebook on Labour Law'' (Hart 2019) ch 16, 730

Facts

The German Federal Office for Employment (''Bundesanstalt'') possessed a statutory monopoly on placing employees with employers. German law also allowed the ''Bundesanstalt'' after consulting with workers and employers associations to entrust other institutions or people with employment procurement services under its supervision. It had become the practice that a number of executive recruitment businesses developed, to which the ''Bundesanstalt'' turned a blind eye. However, without the explicit approval of the ''Bundesanstalt'', acts, including contracts, which infringed the statutory provision were void under the German Civil Code. Mr Höfner and Mr Elser were recruitment consultants who had placed a candidate as a sales director with a company called Macrotron GmbH. Macrotron GmbH had decided that they did not want the candidate. Mr Höfner and Mr Elser argued that the man was perfectly suitable, and sued for breach of contract. In its defence, Macrotron argued that any contract was void. Mr Höfner and Mr Elser therefore challenged the provision declaring the contract void under the

EC competition law European competition law is the competition law in use within the European Union. It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not crea ...

provision,

Article 82 Article often refers to: * Article (grammar), a grammatical element used to indicate definiteness or indefiniteness * Article (publishing), a piece of nonfictional prose that is an independent part of a publication Article may also refer to: G ...

Judgment

As a preliminary question, the

European Court of Justice The European Court of Justice (ECJ, french: Cour de Justice européenne), formally just the Court of Justice, is the supreme court of the European Union in matters of European Union law. As a part of the Court of Justice of the European Un ...

held that the ''Bundesanstalt'', even though it was a public body, could be subject to competition laws. It was an "undertaking", and therefore fell within the scope of the Treaty. Furthermore, by failing to satisfy demand for a good or service, the exclusive right of the German government to regulate employment services could amount to the abuse of a dominant position.

Notes

References

*E McGaughey, ''A Casebook on Labour Law'' (Hart 2019) ch 16, 730 {{DEFAULTSORT:Hofner And Elser V Macrotron Gmbh Court of Justice of the European Union case law German case law 1991 in case law 1991 in Germany European Union competition case law European Union labour case law

Facts

Judgment

See also

Notes

References