The action concerns Greek Law Number 3037, passed in July 2002. According to an English translation of the law, this prohibits the "operation and installation of any game [including electrical, electromechanical and electronic games] placed in public places such as hotels, cafeterias, organisation halls and in any other public or private place".
The Greek government has since confirmed that only electronic games related to gambling are prohibited, but the Commission has questioned the compatibility of the law with the provisions of the EC Treaty on the free movement of goods and services and the freedom of establishment.
In October 2002, the Commission sent the Greek authorities an initial letter of formal notice drawing attention to the fact that prohibiting electrical, electromechanical and electronic games in all public places, with the exception of casinos, could in practice restrict the import of these products in contravention of the rules of the EC Treaty on the free movement of goods.
The Greek response did not satisfy the Commission, and in July last year it sent Greece a further official request for information in the form of a supplementary letter of formal notice, representing the first stage of the infringement procedure provided for by the EC Treaty. This was followed up in April by a "reasoned opinion", formally requesting the Greek government to amend the law.
The Commission's biggest concern is that the general ban on games is disproportionate insofar as it applies not only to equipment (slot machines) and games of chance which might give rise to social concerns, but also games of an entirely different nature which are not, in themselves, a source of particular disquiet with regard to public order or consumer protection.
In addition the law, says the Commission, has made it impossible to provide and supply electronic games equipment and programmes, particularly in public places, or to perform related activities (for example, the installation, repair and maintenance of such equipment and programmes).
This may well prevent businesses being set up in the country, or prevent firms from other Member States from carrying out services – in breach of EU principles of free movement of goods and services and the freedom of establishment.
The fact that the law was not notified to the Commission at the draft stage also raises questions concerning a possible infringement of a Directive that provides for prior notification of national regulations laying down technical rules in respect of on-line goods and services.
Greece promised to amend the law earlier this year, but as yet has not introduced any changes to the legislation. Accordingly, says the Commission, it has been forced to refer the matter to the European Court of Justice.