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Amsterdam canal cruise volume policy unlawful according to Council of State

In a ruling (ECLI:NL:RVS:2024:3732), the Administrative Law Division of the Council of State ruled that the municipality of Amsterdam’s new policy for passenger shipping on Amsterdam’s inland waterways violates the Services Directive. The municipality of Amsterdam will therefore (as in 2017) have to go back to the drawing board. Wieringa Advocaten was involved in this case on behalf of Rederij Lovers.

Volume policy for passenger shipping

With effect from March 2024, Amsterdam’s municipal executive established a so-called volume policy for passenger shipping in Amsterdam. Briefly, this set the maximum number of operating licences for passenger shipping at 550.

Under the Services Directive, such ‘scarce licences’ cannot be granted indefinitely. Otherwise, potential applicants would de facto be barred from entering the market. Because of the volume policy, college would in future be allowed to grant operating licences only for a fixed period. At the end of this fixed period, the operating licences that become available would be distributed among potential applicants.

The Amsterdam college considered that Amsterdam shipowners’ operating licences, which had been granted for an indefinite period of time, interfered with the volume policy. So it revoked the operating licences of all Amsterdam passenger shipping. In 2022, a first part of these licences was redistributed among potential candidates.

A major blow for the Amsterdam shipowners. They did not leave it at that and went to the administrative court.

Services Directive

The Services Directive (Directive 2006/123/EC) aims to ensure the free movement of services and freedom of establishment. That is, there is an internal market within the European Union in the sense of an area without internal borders whereby Member States allow service providers originating from other Member States into their own territory. Restrictions on this (such as authorisation schemes) are only justified if they are non-discriminatory, necessary and proportionate.

In the Services Directive review, things went south for the Amsterdam municipality.

Compelling reason of public interest

Central to the debate on the presence of compelling reasons of public interest was the college’s assertion that liveability in Amsterdam is under pressure. The college wanted the volume policy to prevent the already existing nuisance from increasing further.

However, the Division held that all the research reports submitted by the college did not show that passenger shipping was partly responsible for some of the nuisance experienced by residents in the city. Thus, the college had not proved that passenger shipping partly weighs on the liveability of the city. The survey reports mainly show that the nuisance comes from pleasure and illegal passenger shipping, with residents experiencing nuisance from screaming boaters, excessive drinking and excessively loud music, among others.

Moreover, the college wants a balance between facilities for residents and facilities for tourists, but according to the Division, nowhere does it show that the supply for passenger shipping and facilities for residents is out of balance.

Proportionality of volume policy

However, the Division does consider that the board has sufficiently demonstrated that the interests of smooth and safe passage and the fair distribution of available space are at stake. These interests can therefore serve as justification for the volume policy.

However, the college had not sufficiently substantiated that these interests are coherently and systematically pursued. Indeed, the college had not demonstrated it also takes sufficient measures aimed at other users of the canals. For example, by also placing restrictions on the use of Amsterdam’s canals by pleasure boats.

Effects of the ruling

Amsterdam shipowners can breathe a sigh of relief for now; their indefinite operating licences are revived. The college will have to go back to the drawing board for new policies.

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Amsterdam canal cruise volume policy unlawful according to Council of State