Hoechst AG v Commission

The Commission's powers to carry out dawn raids are subject to fundamental rights, but the inviolability of the home does not extend to business premises, and the decision ordering an inspection must state its subject matter and purpose.

Citation
Joined Cases 46/87 and 227/88, [1989] ECR 2859
Court
Court of Justice of the European Union
Year
1989
Subject
Competition Law
Topic
Investigations, cartels and penalties

Facts

The European Commission adopted a decision ordering Hoechst to submit to an inspection of its premises, on suspicion of participating in cartels in the PVC and polyethylene industries. Hoechst refused to allow the inspectors in without a search warrant, and the Commission obtained a warrant from a German court and imposed a periodic penalty payment on Hoechst for its refusal. Hoechst challenged the decisions, arguing that the inspection breached the fundamental right to the inviolability of the home.

Legal principle

The Court of Justice dismissed the challenge. The court said that the fundamental rights protected by EU law include the right to protection against arbitrary or disproportionate intervention by public authorities in the sphere of the private activities of any person, but that the right to the inviolability of the home, recognised in national legal systems, applied to the private dwellings of natural persons and could not be extended to business premises. The decision ordering the inspection must specify its subject matter and purpose, and the Commission must respect the procedural guarantees laid down by national law when seeking assistance from national authorities. The European Court of Human Rights later took a broader view of article 8 in relation to business premises.

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