Differences between commercial agents and authorised dealers A commercial agent usually brokers business in the name and for the account of a company (principal) and receives a commission for doing so. They do not own the goods and often work according to the company's instructions. The authorised dealer (‘reseller’, ‘distributor’) buys products at his own risk and resells them. He generate their profit from the margin and acts more independently, but often according to contractual specifications. Any possible compensation/indemnification claim of the authorised dealer under Austrian law should be examined carefully. Possible claims after termination of the distribution contract – compensation for investments and authorised dealer's indemnification claim   Compensation for investments According to Section 454 of the Austrian Commercial Code (UGB), entrepreneurs (including authorised dealers) and commercial agents who are bound by vertical distribution agreements are entitled to compensation for investments that they had to make under the agreement for a uniform distribution system if these investments are neither amortised nor reasonably realisable when the agreement is terminated. However, the authorised dealer may not have terminated the contract himself without good cause attributable to the principal or have given the principal no good cause to terminate the contract, otherwise the claim will lapse. The same applies if the authorised dealer has transferred his rights and obligations to another party in accordance with an agreement with the principal.   Indemnification claim ("Ausgleichsanspruch") There is no regulation comparable to the HVertrG for authorised dealers regarding an indemnifiaction claim. In certain cases, however, commercial agency law is applied by analogy and the authorised dealer is entitled to compensation. The Austrian Supreme Court of Justice (OGH) considers this to be justified if the contractual relationships correspond economically to those between the entrepreneur and the commercial agent, in particular if the authorised dealer has been granted an exclusive right of sale. This also applies if the contract strongly resembles the characteristics of a commercial agency contract or if not granting a claim would contradict the intentions of the law. The authorised dealer must be integrated into the supplier's sales organisation and assume similar tasks to those of a commercial agent, including the transfer of their customer base at the end of the contract. Whether an authorised dealer is integrated into the entrepreneur's sales organisation and whether and to what extent there is an obligation to transfer the customer base (customer data) when the contract ends depends on various criteria. The decisive factor is an overall view of the authorised dealer's rights and obligations. To this end, case law has developed more detailed criteria, the presence/absence of which serves the correct legal classification of an authorised dealer agreement in the respective case. According to Austrian law, different claims can be attached to the termination of the contractual relationship depending on whether or not the authorised dealer fulfils these conditions for analogy. Under the conditions of Sec. Commercial Agency Act. 24 (HVertrG), the authorised dealer is therefore generally entitled to indemnification if commercial agency law is applicable by analogy. However, the dealer is not entitled to such compensation in the following cases: If the authorised dealer has terminated the contract himself or dissolved it prematurely, unless the termination is due to circumstances attributable to the entrepreneur/principal (e.g. significant breaches of contract), or for reasons of age or illness; If the binding entrepreneur has terminated or prematurely dissolved the contract due to culpable conduct on the part of the authorised dealer that constitutes good cause under Sec. 22; if the authorised dealer has transferred his rights and obligations to another party in accordance with an agreement concluded with the principal on the occasion of the termination of the contractual relationship; if the distributor has not acquired new customers for the principal or the principal has not benefited significantly from his activities.   Compensation for damages Other claims for damages are also conceivable, which the authorised dealer could derive from a premature termination for which the other party or both parties are responsible (if commercial agency law applies, this is also analogous to Sec. 23 of the HVertrG). Lawyer distribution law Dr. Simon Harald Baier LL.M. advises on distribution contracts and authorised dealers, as well as on all matters of commercial and competition law.

In May 2023, the EU published the new Regulation 2023/988 on general product safety (GPSR), which will come into force after a transitional period from 13 December 2024 and replace the previous Directive 2001/95/EC. The GPSR aims to ensure that only safe products are sold in the EU and contains extended requirements, particularly for online trading. However, not all provisions of the GPSR apply to cosmetic products, as they are already subject to the Cosmetics Regulation (Cosmetics Regulation), which sets out specific safety requirements. The GPSR is therefore only relevant in areas that are not regulated by the Cosmetics Regulation. Scope of the GPSR for cosmetics The GPSR supplements the Cosmetics Regulation with regard to online sales and distance selling, in particular through Article 19, which sets out additional information requirements for distance sales. According to the GPSR, "economic operators" - manufacturers, authorised representatives, importers, distributors or fulfilment service providers - are responsible for complying with Article 19. However, the "responsible person" (RP) named in the Cosmetics Regulation, who ensures compliance with the cosmetics regulations, cannot be directly bound by Article 19 of the GPSR, as they do not usually place products on the market themselves - since this is a prerequisite for the application of Article 19. Obligations under Article 19 GPSR If an economic operator offers cosmetic products online or at a distance, certain information must be provided clearly and visibly. This includes: - Name, trade mark, postal address and electronic address of the manufacturer - If the manufacturer is based outside the EU, the contact details of the "responsible person" must be provided. - Product identification data, including an image of the product and its characteristics. - Warnings or safety information in the language of the respective member state. The electronic address here means either an e-mail address or a website address. In the original German version of the GPSR, only an e-mail address was required; however, this was subsequently changed to provide flexibility. Article 19 (d) of the Cosmetics Regulation requires the labelling of " special precautionary information"; these are listed in Annexes III to VI of the Cosmetics Regulation; in addition, further safety instructions and warnings recommended by the product safety assessor in accordance with Annex I Part B.2 of the Cosmetics Regulation may be printed on the label under the responsibility of the responsible person under the Cosmetics Regulation. The above-mentioned information components must correspond to the information required in Article 19(1)(d) of the GPSR. This information serves the purpose of transparency and safety in online trading and is intended to ensure that the consumer receives the necessary information to assess the safety of a product. The role of the "responsible person" - under the Cosmetics Regulation and the GPSR The Cosmetics Regulation stipulates that for imported cosmetic products, each importer is the "responsible person" for the specific products he places on the market; the importer may, by written mandate, designate a person established within the EU as the responsible person who accepts the mandate in writing. "Responsible person" within the meaning of Article 19 of the GPSR is "the responsible person within the meaning of Article 16(1) of the GPSR or Article 4(1) of Regulation (EU) 2019/1020" (Market Surveillance Regulation) - it is therefore not clear whether the responsible person within the meaning of the Cosmetics Regulation and the responsible person under the GPSR are identical. The Market Surveillance Regulation stipulates that an importer or an authorised representative appointed by the manufacturer assumes these tasks within the scope of product safety. However, this can only mean that additional responsibilities that go beyond the requirements of the Cosmetics Regulation are assumed by these economic operators and not by the "responsible person" according to the Cosmetics Regulation. This view is also supported by the Commission's guidelines for economic operators and market surveillance authorities on the practical implementation of Article 4 of the Market Surveillance Regulation. Therefore, if the economic operator selling cosmetic products online is not a "responsible person" under the Cosmetics Regulation (e.g. if the economic operator is an importer and has designated a responsible person), the existing obligations of the "designated responsible person" designated under the Cosmetics Regulation and those new obligations of the economic operator regarding compliance with Article 19 of the GPSR will partially overlap. As the designated responsible person under the Cosmetics Regulation is already responsible for providing the required information and keeping it up to date, the importer should be responsible for ensuring that the information is provided/displayed at the point of sale. According to the above, the importer (economic operator) or an authorised representative would then have to be specified as the "responsible person" within the meaning of Article 19 of the GPSR, and consequently their electronic address would also have to be specified (and not that of the responsible person within the meaning of the Cosmetics Regulation). To add to the general confusion, two responsible persons would then have to be named - but this can be avoided by reaching an agreement with the designated responsible person that they themselves also assume the duties as authorised representative within the meaning of the Market Surveillance Regulation (and thus the GPSR); in practice, these should not be far apart anyway. Conclusion The new GPSR does not introduce additional obligations for the designated "responsible person" under the Cosmetics Regulation. The obligations under the GPSR primarily affect economic operators such as importers and distributors who offer cosmetic products online or via distance selling. In order to avoid misunderstandings, clear agreements should be made between importers and designated "responsible persons" to ensure compliance with the provisions of both the Cosmetics Regulation and the GPSR. These contractual agreements help to minimise legal risks and ensure compliance with the new product safety requirements. Lawyer cosmetics law Dr Simon Harald Baier LL.M. advises on cosmetics law, customs law issues and all questions of commercial law.

On 12 January 2023, the EU Regulation on foreign subsidies distorting the internal market (Regulation (EU) 2022/2560, ‘Foreign Subsidies Regulation’, ‘FSR’) entered into force. The aim of this regulation is to close existing loopholes in EU rules on competition, trade and public procurement with regard to foreign subsidies that could distort the European single market and thus create a level playing field. The regulation will have a significant impact on investments and economic activities in the EU. Among other things, it introduces additional reporting obligations for mergers and public tenders if companies have received a certain amount of financial support from non-EU countries. Subsidies from non-EU countries must be scrutinised under the FSR These regulations are also relevant for European companies if they have received financial support from non-EU countries. Enforcement and surcharge bans apply, and non-compliance can result in high fines of up to 10% of the group's global annual turnover. In addition, the European Commission has the option of subsequently unbundling completed mergers, even if they have not exceeded the notification thresholds. Definition of ‘third country subsidy’ A ‘third country subsidy’ within the meaning of the Regulation must fulfil four criteria. It must: - be a financial contribution, - be granted directly or indirectly by a third country, - confer a benefit on a company operating in the internal market and - be limited to a single company, a specific economic sector or several companies or economic sectors. What can the Commission do under the EU foreign subsidies regulation? The Regulation introduces three new instruments for the European Commission: 1. an additional merger control regime that provides for a notification obligation for mergers where the turnover in the EU of one of the undertakings concerned, the target undertaking or the joint venture is at least €500 million and the sum of financial contributions from third countries for all undertakings concerned exceeds €50 million in the three calendar years preceding the notification. The Commission may prohibit a merger if a third-country subsidy distorts the internal market.    2. tenders in public procurement procedures must be notified if the estimated contract value is at least 250 million euros and the bidder has received total financial contributions of at least 4 million euros per third country in the last three calendar years. The award may be refused if third country subsidies distort or threaten to distort the award procedure.    3. Irrespective of thresholds and notification obligations, the Commission can initiate ex officio investigations and take remedial action against third-country subsidies that distort the internal market. This includes, among other things, the subsequent unbundling of a merger that has already been implemented, even if there was no obligation to notify. The Commission can also require ad hoc notifications of mergers and participations in public procurement procedures that do not reach the thresholds. The Commission examines whether a foreign subsidy distorts the internal market. This is the case if the subsidy is likely to strengthen the competitive position of a company in the internal market and thereby actually or potentially affect competition. The regulation contains a non-exhaustive list of criteria for this assessment, such as the amount, type and purpose of the subsidy. It also defines categories of third-country subsidies that are particularly likely to distort the internal market, such as subsidies for ailing companies or those that directly facilitate a merger. If the Commission comes to the conclusion that there is a distortion, it carries out a balancing exercise. In doing so, the negative effects are weighed against the positive effects of the subsidy on the development of the subsidised economic activity or other relevant objectives, in particular of the EU. Lawyer European law Dr Simon Harald Baier LL.M. advises on questions of international trade law  and European law .

In May 2023, the EU published the new General Product Safety Regulation (GPSR) 2023/988 in the Official Journal of the European Union. After an 18-month transition period, the regulation will replace Directive 2001/95/EC from 13 December 2024 and come into force directly in all EU member states.   The EU Product Safety Regulation aims to ensure that only safe products continue to be placed on the market in the EU. Due to increasing digitalisation and growing online trade, additional requirements have been introduced compared to Directive 2001/95/EC.   Scope of validity The regulation applies to all products that are placed or made available on the market in the EU, unless specific EU regulations such as CE directives govern product safety. Medicinal products, foodstuffs and animal feed, live plants and animals, plant protection products, means of transport and aircraft as well as antiques are excluded.   Extension of the personal scope of application Fulfilment service providers and providers of online marketplaces have been newly included in the regulation as economic operators. These actors have specific obligations, such as ensuring the traceability and safety of products.   Evaluation of product safety Article 6 of the Regulation sets out new criteria for the safety assessment of products, including product characteristics, interactions with other products, the presentation of the product, cybersecurity features and predictive functions.   New obligations for manufacturers Manufacturers must now carry out a risk analysis for each product and draw up technical documentation that must be kept for at least ten years. These obligations supplement the requirements already contained in Directive 2001/95/EC.   Significant change to a product The term "substantial modification" has been included in the regulation. Any person who modifies a product in such a way that it affects product safety is now considered a manufacturer. Such changes can be of a physical or digital nature and must be covered by a new risk assessment.   Traceability systems For certain products that pose a serious risk to health and safety, the Commission may introduce a traceability system. This system requires the collection and storage of data to identify the product and the actors involved in the supply chain.   Obligations in distance selling Economic operators offering products online must ensure that their offers contain certain information, such as the name of the manufacturer, its contact information and warnings and safety information in a language easily understood by consumers.   Notification of accidents Manufacturers are obliged to immediately report accidents caused by their products to the competent authorities via the Safety Business Gateway. Importers and distributors must inform the manufacturer if they become aware of an accident caused by a product they have supplied.   Obligations of online marketplaces Providers of online marketplaces must register with the Safety Gate portal and ensure that internal product safety procedures are in place. In the event of a recall, all affected consumers must be notified and personal data may be used for recalls and safety alerts.   Remedial measures for product safety recalls In the event of a recall, economic operators must offer consumers an effective, free and timely remedy, including repair, replacement or refund of the purchase price.   Regulation 2023/988 significantly expands the requirements for product safety and specifically addresses the challenges of the digital age and online trade in order to further ensure the protection of consumers in the EU. Lawyer for commercial law Find out about the legal provisions in good time! Lawyer Dr Simon Harald Baier will be happy to advise you on questions of product safety and the specific requirements of the GPSR.

The “Flexible Kapitalgesellschaft” (FlexKap / FlexKapG / FlexCo) is a new form of company that will be available in Austria from 1 January 2024. It is intended in particular for innovative start-ups and founders , but can generally be chosen as an alternative company form , especially to the limited liability company (GmbH). The new flexible corporation (FlexKapG / FlexCo) is strongly modelled on the GmbH. According to the legal definition of the FlexCo Act, a flexible capital company is a capital company that can be founded by one or more persons for any legally permissible purpose. As with the GmbH, the FlexCo can therefore also be founded as a one-person company. The FlexCo has a company name and must be entered in the commercial register, whereby the legal form supplement must read "Flexible Kapitalgesellschaft" or "Flexible Company" and be abbreviated to "FlexKapG" or "FlexCo". The FlexCo differs from the GmbH in several aspects: The minimum share capital of FlexCo is EUR 10,000, just like a GmbH. However, the minimum capital contribution for FlexCo can be EUR 1, which allows for very small shareholdings. In contrast to a GmbH, the shareholders of a FlexCo are also authorised to exercise the voting rights associated with a share on a non-uniform basis. The FlexCo enables the issue of company value shares of up to 25% of the share capital (this is particularly interesting for employee participation). The FlexCo can acquire its own shares under certain conditions. The articles of association can stipulate that the consent of all shareholders is not required for circular resolutions or that compliance with the text form is sufficient (thus simplifying the form of the resolution). In contrast to the GmbH, the transfer of shares is no longer subject to notarisation. The transfer of shares is therefore possible by means of a deed drawn up by a lawyer or notary. Finally, the conversion options between a GmbH and a FlexCo are simplified: a FlexCo can be converted into a GmbH by resolution of the general meeting. It is also possible to convert a GmbH into a FlexCo. It is also possible to convert a FlexCo into an AG. Article at shb-law.at Attorney business law Dr Simon Harald Baier LL.M. advises in connection with company formations , in particular on the formation of FlexKapG/FlexCo and GmbH as well as on all questions of business law .

Under Austrian law, medicinal products and blood products may only be imported by pharmacies and authorised companies; the Medicinal Products Import Act (AWEG) applies. Medicinal products also include herbal and homeopathic preparations as well as high-dose vitamin and mineral preparations. The import of medicinal products or blood products from a third country or their introduction into Austria from an EEA country is only permitted if an import certificate has been issued or a notification has been made. In the event of an offence, an administrative fine of up to EUR 7,260.00 (in the event of a repeat offence) may be imposed in addition to confiscation by customs. Private individuals are not allowed to carry medicines when travelling, regardless of whether they are entering from EU or non-EU countries. Travellers residing in Austria may re-import medicines for personal use or for accompanying animals that they were carrying when they left the country. Medicines purchased abroad may be carried in up to three retail packs per medicine. Travellers residing abroad may only carry medicines for their personal use or for animals travelling with them. Companies that import medicinal products must have a corresponding authorisation. Clinical Research Organisations (CROs) may only import medicinal products with the appropriate authorisation. Medicinal products may only be imported or brought into Austria if they are intended for re-export or for use in humans or animals or for scientific purposes with or without use in humans or animals. Blood products are subject to additional safety regulations. Medicinal specialities may only be imported for clinical trials or therapeutic purposes, whereby a medical opinion must confirm the necessity that an alternative authorised in Austria is not sufficient. A prescription alone is not sufficient; the expert opinion must contain a technical justification. Lawyer for importing medicinal products / international trade Find out about the legal provisions in good time before importing! The law firm will also advise and represent you if you are confronted with administrative penal proceedings for violating the provisions of the Austrian Medicinal Products Import Act (AWEZ).

Currently, a secondary residence tax ("Zweitwohnsitzabgabe") is applicable in Salzburg, Styria, Tyrol, Vorarlberg, and Carinthia. Laws for vacancy taxes ("Leerstandsabgabe") have been enacted in Styria, Salzburg, Tyrol, and Vorarlberg. Property owners are currently facing corresponding demands from municipalities that have implemented these taxes. However, each federal state has set different regulations, tax rates, and exemptions. There are also numerous exemptions in all federal states, for example, for investment apartments, agriculturally used apartments, apartments that cannot be used for health reasons, or those serving professional purposes. It is possible that an exemption applies, or the apartment/house is not subject to the tax obligation for other reasons. When confronted with such a tax notice, owners should therefore have it legally reviewed to ensure legal certainty for the coming years! The federal state of Vienna is also currently planning to introduce a secondary residence tax, which is to be levied from 2025 onwards – the only exceptions being those apartments that, despite proven suitable efforts, could not be rented at the local customary rent for a total period of six months. Thus, in Vienna, it also represents a form of vacancy tax. There are differing expert opinions on whether the state legislature is allowed to impose a vacancy tax. In any case, such a tax constitutes an interference with the constitutionally protected fundamental right to property and can be interpreted as a hidden wealth tax. Based on a decision by the Constitutional Court, there are strict limits for such taxes imposed by the federal states, especially regarding their amount. However, parliament has recently enabled the states to impose a vacancy tax through a constitutional provision, thereby effectively circumventing these limits.

Cosmetics law is a complex legal framework that regulates the manufacture, sale, labelling and use of cosmetic products. It comprises a large number of legal provisions, regulations and guidelines at national and international level that aim to ensure the safety, quality and efficacy of cosmetics and protect the interests of consumers. EU Cosmetics Regulation One of the central legal regulations in the area of cosmetics law is the EU Cosmetics Regulation (EU Regulation (EC) No. 1223/2009), which significantly regulates the sale of cosmetics in the European Union. This regulation lays down comprehensive safety standards, defines prohibited ingredients and requires clear labelling of cosmetic products. It applies directly in all EU member states and ensures that uniform standards are adhered to throughout the internal market. The EU Cosmetics Regulation stipulates, among other things, that cosmetic products must be safe when used under normal or reasonably foreseeable conditions of use. It contains a list of prohibited ingredients, including CMR substances (carcinogenic, mutagenic or reprotoxic substances), which must not be contained in cosmetic products. In addition, all ingredients used must be clearly labelled on the packaging to enable consumers to make informed choices. Compliance with labelling requirements is an important aspect of cosmetics legislation, which aims to ensure that consumers have all the relevant information about a product. Claims Regulation Another important element of cosmetics law is the Claims Regulation (EU) No. 655/2013, which sets out common criteria for substantiating advertising claims for cosmetic products. This regulation aims to prevent misleading or false advertising claims and to protect consumers from misleading advertising. Advertising claims for cosmetic products must be scientifically substantiated and must not be misleading. Responsible Person (RP) Only cosmetic products for which a legal or natural person within the Community territory has been designated as the "Responsible Person" may be placed on the market. For each cosmetic product placed on the market, the Responsible Person shall ensure compliance with the relevant obligations set out in this Regulation: Safety - Cosmetic products must be safe for human health under normal or reasonably foreseeable conditions of use Notification - Before being placed on the market, the cosmetic product must be notified to the Commission electronically Manufacture in accordance with good manufacturing practice Creating and maintaining the product information file and the safety assessment CMR substances and prohibited substances may not be used, and the substances listed in Annexes III-VI of the Regulation may only be used in accordance with the specified restrictions Nanomaterials - In addition to notification, cosmetic products containing nanomaterials must be notified to the Commission electronically six months before being placed on the market Labelling and advertising claims Notification of serious undesirable effects Informing the public about the qualitative and quantitative composition and about (serious) adverse effects National provisions on cosmetics law & customs law In addition to the EU-wide regulations, there are also national laws and regulations that supplement cosmetics legislation and define specific requirements for the sale and use of cosmetics in a particular country. These national regulations may impose additional requirements on the safety, quality and labelling of cosmetic products and must be observed by manufacturers, importers and distributors. Customs law issues also regularly arise in connection with the import of cosmetic products from third countries. Conclusion Compliance with cosmetics legislation is crucial for manufacturers, importers and distributors of cosmetic products. They are responsible for ensuring that their products comply with the applicable legal requirements and are safe for consumers. This includes ensuring the safety and quality of products, proper labelling and packaging, compliance with advertising regulations and the reporting of adverse effects. Both administrative and criminal sanctions can be imposed for violations of cosmetics law. This can include fines, the withdrawal of products from sale or even legal action against the persons responsible. It is therefore crucial for companies in the cosmetics sector to be fully aware of the applicable regulations and ensure that their products comply with legal requirements. Cosmetics law lawyer Dr Simon Harald Baier LL.M. advises on cosmetics law, customs law issues and all questions of commercial law.

Commercial agents are tasked with brokering deals for other companies and are obligated under the Commercial Agents Act ("Handelsvertretergesetz" - HVertrG) to continuously seek out new business opportunities. Typically, the commercial agent does not directly conclude these deals on behalf of the company but merely brokers them. Commercial Agency Agreement Usually, a contract is concluded between the commercial agent and the company for which they work (referred to as the principal), which must comply with the legal framework of the Commercial Agents Act. In Austria, the rights and obligations of a commercial agent are primarily regulated by the Commercial Agents Act and EU Directive RL 86/653/EEC. It is important to distinguish between the statutory and contractual rights and obligations and to ensure that the commercial agency agreement complies with the mandatory norms of the Commercial Agents Act. Rights and Obligations of the Commercial Agent The rights of the commercial agent include, among others, the right to remuneration (commission) and accurate accounting. The commercial agent also has control rights such as the right to inspect books and records. Their main duty is to broker or conclude deals while representing the interests of their principal. This also includes the obligation to provide the entrepreneur with the necessary information and to promptly inform them of any concluded business transactions. Obligations of the Entrepreneur In addition to the obligations of the commercial agent, the entrepreneur, or principal, also has certain obligations. This includes the payment of the agreed commission and the provision of support in the form of information and documents. The entrepreneur also has obligations of disclosure, loyalty, and confidentiality towards the commercial agent. The commission entitlements of the commercial agent are not subject to specific regulations regarding the basis of calculation in the Austrian Commercial Agents Act, but generally, no discounts may be considered in the calculation of the commission. Important Contractual Points The commercial agency agreement sets out the fundamental rights and obligations of both parties. The more precise and comprehensive this contract is formulated, the lower the risk of disputes. Frequently asked questions during the contractual relationship concern the scope of the commercial agent's activities, mutual rights and obligations, and the amount of commission. Questions regarding exclusivity, territorial protection, and non-compete clauses may also be significant. Antitrust Law From an antitrust perspective, it is also important to clarify whether the commercial agent is a "true" or "untrue" commercial agent. Only genuine commercial agency contracts are not subject to the prohibition of cartels because they are considered quasi-extensions of their principal. To be classified as such an extended arm of the principal, a commercial agent must bear no or only insignificant risks, namely regarding the contracts concluded or brokered on behalf of the entrepreneur, market-specific investments for this area of activity, and other activities that the entrepreneur deems necessary for the same relevant market. Compensation Claim Section 24 HVertrG provides for a so-called compensation claim for the commercial agent. The compensation claim is due to the commercial agent after the termination of the contract. The prerequisite for this is that the contract was terminated in a compensatory manner (e.g., by termination of the entrepreneur) and that the commercial agent has attracted new customers or significantly expanded existing business relationships. It must be expected that even after the termination of the commercial agent's activities, benefits will accrue to the entrepreneur. The payment of the compensation claim must be fair, taking into account all circumstances, especially the commissions the commercial agent would have earned from transactions with the relevant customers. However, jurisprudence or legislation also grants compensation to the distributor, franchisee, insurance agent, and franchise gasoline station operator in the meantime. Consideration of Statute of Limitations The statute of limitations for claims arising from a commercial agency agreement is usually three years, while compensation claims must be asserted within one year. Commercial Lawyer Dr. Simon Harald Baier LL.M., attorney at law, advises on commercial agency agreements, distribution agreements, and all matters of commercial law and antitrust law.

The Court of Justice of the European Union (CJEU) recently handed down judgements in cases C-474/22 and C-54/23 relating to air passenger rights in the event of delays. These judgements have far-reaching implications for the rights of passengers and the obligations of airlines. Background Two Laudamotion flights from Düsseldorf to Palma de Mallorca were announced with a delay of more than three hours. Two passengers decided not to take the flight as they feared they would miss an important business appointment. The German Federal Court of Justice asked the CJEU whether a passenger whose flight is announced to be delayed by at least three hours compared to the scheduled arrival time is entitled to compensation if he has not turned up for check-in or if he has booked an alternative flight that has enabled him to reach the final destination with a delay of less than three hours. Judgement of the CJEU and effects The CJEU ruled that there is no entitlement to a lump-sum compensation payment in these two cases. This judgement has a significant impact on the rights of passengers and the obligations of airlines. It clarifies that passengers who decide not to take their flight due to an announced delay are not entitled to a lump-sum compensation payment; they would not have suffered an irreversible loss of time and therefore no compensable damage in terms of the lump-sum compensation payment. In addition, a passenger who voluntarily did not take the flight for which he had a confirmed booking and who, thanks to a replacement flight for which he reserved a seat on his own initiative, reached the final destination with a delay of less than three hours compared to the originally planned arrival time, did not suffer a loss of time that would entitle him to a lump-sum compensation payment. The Air Passenger Rights Regulation (Reg. 261/2004) is intended to minimise annoyances and “serious inconvenience” suffered by passengers in connection with a flight can be remedied. However, such an inconvenience, which may result from a passenger having to find an alternative flight themselves, cannot be considered serious within the meaning of the Air Passenger Rights Regulation if the passenger has reached their final destination with a delay of less than three hours. Lawyer aviation law Dr Simon Harald Baier LL.M. advises on all questions of aviation law and represents airlines in the defence of passenger claims.

Aviation organisations, authorities and their assets are an integral part of aviation products and associated technologies, includes people, processes and other intangible assets and must be protected against information security risks that may potentially impact safety. Therefore, new requirements, referred to as Part-IS ("Information Security"), have been created to set requirements for organisations and authorities across the aviation sector for the management of information security risks with potential impact on aviation safety. The new European regulations on this - Delegated Regulation (EU) 2022/1645 and Implementing Regulation (EU) 2023/203 - cover the identification and management of information security risks that could affect information and communication technology systems and data used for civil aviation purposes. They further cover the detection of information security incidents, the identification of incidents considered as information security incidents and the response to such incidents. Finally, they regulate the restoration of an appropriate level of safety. From when and for whom do the new regulations apply? The Part-IS requirements apply from 16 October 2025 to the following organisations (with certain exceptions): aerodrome operators and apron management service providers production organisations and design organisations The Part-IS prequirements apply to all other organisations and authorities (with certain exceptions) from 22 February 2026: airlines maintenance organisations continuing Airworthiness Management Organisations (CAMO) approved Training Organisations (ATO) aircrew aero-medical centres flight simulation training device operators air traffic controller training organisations (ATCO TO) and ATCO aero-medical centres air navigation service providers U-Space service providers The respective competent authorities (in Austria four aviation authorities have been established, whereby in the scope of the relevant regulation the Supreme Civil Aviation Authority (Ministry of Transport) and Austro Control would be significant), including EASA Content of the requirements The central requirement for the organisations and authorities subject to regulations and an essential element of the Cybersecurity Regulations is the establishment of an information security management system (ISMS). Such a system should be able to detect security incidents, protect against them, respond to them appropriately and restore integrity after an incident. In particular, it requires - in analogy to existing aviation-specific management systems - the definition of responsibilities and accountabilities and the appointment of an accountable manager; the identification and review of information security risks; the assessment of the information security risk; the corresponding development of measures; competent and trained personnel; as well as a monitoring function regarding compliance with the requirements. The Cybersecurity Regulations also provide for the establishment of an internal and external reporting system and the creation of an ISM manual. It is possible to integrate the ISMS into other already existing management systems (e.g. safety management system, security management system). Requirements already arising from other Union legislation (Regulation 300/2008 and NIS Directive) The Cybersecurity Regulations provide that where an organisation is an operator or entity referred to in Member States’ national aviation security programmes under Article 10 of Regulation (EC) No 300/2008 on common rules in the field of civil aviation security, the cybersecurity requirements set out in point 1.7 of the Annex to Implementing Regulation (EU) 2015/1998 shall be considered equivalent to the requirements of the Cybersecurity Regulations (with the exception of the points on external reporting systems of the Part-IS). Regulation (EC) 300/2008 and the associated implementing provisions of Regulation (EU) 2015/1998 contain the basic rules that must be complied with throughout the European Union to protect against terrorist attacks; these rules apply to airports, airlines and a number of other companies. Finally, under the Cybersecurity Regulations, compliance with the security requirements set out in Article 14 of Directive (EU) 2016/1148 (“NIS Directive”), which are equivalent to the requirements of these Regulations, is deemed to be compliance with the requirements. The NIS Directive introduces specific security requirements and reporting obligations for operators of essential services in certain sectors of the economy to promote a culture of risk management and ensure that the most serious security incidents are reported. The NIS Directive is implemented in Austria by the “NIS Act” and the “Network and Information Systems Security Regulation”. Therefore, due to their importance for the maintenance of public transport in the transport sector of interest here, subsector air transport, essential services are the follwing: The carriage of passengers in commercial air transport by an air carrier that carries more than 33% of the passengers handled annually at an airport that handles more than ten million passengers annually; in the field of airport operations, flight handling, in particular passenger handling and baggage handling, as well as the operation of security systems, at an airport handling more than ten million passengers per year; in the field of air traffic control - air navigation services provided by facilities which are responsible for air navigation services as a sovereign task of the Federal Government under the Aviation Act (“LFG”); - aerodrome control services at an airport that handles more than ten million passengers a year. As a result, there are currently three operators of essential services for the air transport sub-sector in Austria: Austrian Airlines AG, Flughafen Wien AG and Austro Control GmbH. Attorney Aviation Law Dr. Simon Harald Baier LL.M. advises on all issues of aviation law and business law.

In October 2022, the Secondary Residence and Vacancy Tax Act (StZWAG) of the Austrian province of Styria came into force. It allows Styrian municipalities to levy a tax on vacant apartments (housing vacancy tax) based on a resolution of the municipal council. At the end of March 2023, the municipal council of the Styrian tourist municipality of Schladming decided to levy the constitutionally questionable tax. Housing vacancy tax The subject of the tax are premises suitably equipped for residential purposes, which can be used by the owner without significant modification to meet a housing need, even if only temporary (apartments), at which, according to the data of the Central Register of Residents, more than 26 calendar weeks in the year there is neither a report as a main residence nor as another residence. The following are explicitly exempt from the obligation to pay the tax: - apartments owned by a non-profit building, housing and settlement association; - apartments owned by local authorities; - buildings with up to three apartments, where the owners of the building have their main residence in one of the apartments; - dwellings used for business purposes, including those belonging to agricultural and/or forestry enterprises; - dwellings that are vacant for no more than 26 calendar weeks in a year on the occasion of necessary repair work; - dwellings which are no longer used as a residence by the owners for health or age-related reasons; - provident apartments for children, but not more than one provident apartment per child in Styria; - apartments that are not rentable due to official orders; - buildings with one or more apartments for which the Federal Office for the Preservation of Historical Monuments has issued a notice stating that they are listed buildings; - dwellings owned or used by a foreign state or by organizations established on the basis of state treaties or by persons recognized as extraterritorial, insofar as these dwellings are used for the accommodation of diplomatic missions or for residential purposes for persons recognized as extraterritorial. Who must pay the housing vacancy tax? The persons liable to pay the levy are the owners of the dwelling, but in the case of a building lease, the persons entitled to the building lease. Caution: Obligation for self-calculation! Persons liable to pay the levy must calculate the levy themselves and notify the competent tax office of the self-calculated amount for each calendar year, the usable floor space of the dwelling and the calendar weeks without residence in the year by March 31 of the following year and pay it within four weeks of notification of the self-calculation. Reversal of the burden of proof The otherwise liable person must prove that one of the above exceptions applies. If the circumstances of the individual case make it unreasonable to expect the taxpayer to provide such proof, it is sufficient to establish prima facie evidence. With regard to the exception of provident housing, the person liable to pay the tax must prove that the tax has been paid for any other provisional housing for the same child in other municipalities in Styria for which there is a levy obligation in these municipalities. Preventive housing in municipalities in which no vacancy tax is levied shall not be taken into account. Amount of vacancy tax With regard to the amount of the levy, the Styrian legislator has also given the municipalities some leeway here; it may not exceed a maximum of EUR 1000 per calendar year for apartments with 100 m² of usable floor space and is to be reduced or increased accordingly depending on the actual size. In Schladming the local council has decreed the maximum value. Attorney for real estate law Attorney at Law Dr. Simon Harald Baier LL.M. advises on all questions in relation to a secondary residence, on business law and real estate law.