Hoechst AG v. Commission of the European Communities

In January 1987, the Commission of the European Communities (commission) (defendant) ordered an investigation into German company Hoechst AG (plaintiff). The order required Hoechst to allow the commission to enter Hoechst’s premises during business hours to inspect records relating to potential anticompetitive conduct and promptly provide requested explanations. Hoechst refused to comply, contending that the commission sought an illegal search. The commission responded by declaring that it would fine Hoechst a stated amount for each noncompliant day. In March, the European Court of Justice (ECJ) denied Hoechst’s application to suspend the commission’s orders. A German court subsequently issued a search warrant in the commission’s name. (A German court previously denied as unjustified the German government’s search-warrant request.) In May, the commission fined Hoechst based on its prior order. Hoechst sued the commission in the ECJ pursuant to Article 173 of the treaty that created the European Economic Community (EEC)—also known as the Treaty of Rome—seeking declarations that the commission’s orders were void. Specifically, Hoechst argued that commission Regulation 17, Article 14 did not authorize the commission’s investigation because the investigation would be a search that violated fundamental EEC law. The commission conceded that its Article 14 powers embraced measures that would be considered searches in some EEC member states but contended that Hoechst’s fundamental rights were preserved because Hoechst could challenge the investigation order before the ECJ and could apply to suspend the investigation. Additionally, the EEC noted that Hoechst could contest the fine before imposition.