The aim of this article is to locate the Court of Justice's recent decision in Cartesio (C-210/06) in its free movement context, and to assess its likely effect in relation to the development of regulatory competition in European company law. The article has three main parts. In the first, we provide a brief overview of the free movement jurisprudence of the Court. In the second, we discuss the way in which the Court has dealt with the free movement of companies, paying close attention to the Cartesio ruling. The third section explores the possible impact of Cartesio on the development of regulatory competition in European company law. While there is a realistic fear that Cartesio may herald an increase in potentially damaging regulatory competition--specifically in the market for reincorporations--the impact of the judgment will ultimately depend on the way in which Member States, Community institutions, courts and controllers of companies react to the challenges it creates
