In Holland cold calling for financial services was banned. This was extended to cold calling from Holland to other member states to protect the reputation of the Dutch financial sector after several complaints about Dutch companies.
AIpine Investments argued that this infringed Article 49 freedom of services.
ECJ held that the prohibition did infringe freedom to provide services, but was justified by the ‘consumer confidence’ defence.
Article 49 DOES applies to services which a provider supplies without moving from the Member State in which he is established to recipients established in other Member States, and covers the rules of the state of origin as well as the sate of destination.
However the smooth running of the financial sector relies on consumer confidence, while cold calling catches consumers unawares and can harm them.
Therefore the restriction is proportionate.
NB Its not clear where this public interest defence / justification comes from in the context of free movement of services, as there is nothing in the treaty about it (unlike Article 30 for goods).
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European Law | Free Movement Of Goods And Services Notes (30 pages) |