EcoClean is a Finnish private company providing cleaning services at schools. Their business has been very successful because of their reasonable prices and friendly staff. It wishes to expand its market to Sweden but faces some difficulties.

EcoClean learns that Swedish law requires that all the companies who provide cleaning services at schools must apply for a prior authorisation from the Swedish Public Health Organisation (SPHO) even if they only wish to provide their services on a temporary basis. The SPHO takes no account of the obligations companies have already fulfilled in their own Member State.

EcoClean seeks your advice on whether this Swedish law infringes EU law.

Which ONE of the following statements is CORRECT?

A

The Swedish law is in breach of Article 56 because it is directly discriminatory and is disproportionate;

B

The Swedish law is in breach of Article 56 because it is indirectly discriminatory and violates the principle of mutual recognition;

C

The Swedish law is not in breach of Article 56 because it can be justified on the grounds of consumer protection;

D

The Swedish law is not in breach of Article 56 because it is does not impede access to the services market;

E

The Swedish law is not in breach of Article 56 because the principle of mutual recognition does not apply in free movement of services.