[Intl-tobacco] EU court overturns EU tobacco advertising ban law (fwd)

[Robert Weissman]

EU court overturns EU tobacco advertising ban law
Source: Reuters, Thursday, 10/5/00

BRUSSELS, Oct 5 (Reuters) - The European Court of Justice overturned on
Thursday legislation banning tobacco advertising in the European Union,
dealing a major blow to EU health policy.

The European Union adopted laws in July 1998 which would gradually have
phased out almost all tobacco advertising and sponsorship by 2006. The
move would have stopped most forms of tobacco advertising three years
after coming into force.

Beyond that, press advertising would have been allowed for a further year.  
Sponsorship of most sports and arts events would have been possible for a
further two years, and of major events, such as Formula One motor racing,
until October 2006.

But EU powers over health policy were very limited at the time the measure
was introduced, and the Commission justified its proposal as a way of
harmonising differences in national laws which hindered free trade across
the EU's borders.

The ban was introduced as a single market measure which did not require
unanimous backing from all member states, but the court said this was
illegal.

``The court has annulled the directive on the grounds that EU lawmakers
had no competence for introducing it on the basis of internal market
legislation,'' the court said in a statement.

``It has come to the conclusion that for most of the types of advertising
affected by the measure, the general advertising ban does nothing to
improve trade in the affected products.''

It added, however, that the EU's governing treaty would have allowed
restrictions on certain forms of tobacco advertising.

Germany's advertising industry welcomed the ruling on a case originally
brought by the German government and a number of tobacco firms.

``It's a huge victory for the advertising industry. The court showed the
EU institutions a red card. For legal products there can be advertisements
now within the EU. It's a complete success for the advertising industry,''
Volker Nickel, spokesman for German advertising association (ZAW) told
Reuters.

The European Commission, the author of the law, was upbeat about the
result, saying the court had merely clarified what was and was not
possible.

``The court has clarified the best way forward in tackling the scourge of
smoking,'' Beate Gminder, spokeswoman for EU health commissioner David
Byrne, told Reuters.

``(It) has left the door open for restrictions on tobacco promotion,
providing the means are more focused,'' she added.

It was Germany who challenged the measure in the court while a number of
tobacco manufacturers -- including Imperial Tobacco Group (quote from
Yahoo! UK & Ireland: IMT.L), Gallaher Group (quote from Yahoo! UK &
Ireland: GLH.L) and British American Tobacco (quote from Yahoo! UK &
Ireland: BATS.L) -- brought proceedings in Britain for judicial review, a
case later referred to the European Court.

Tobacco stocks were not materially affected by the ruling. Imperial
Tobacco was five pence up at 634 by 0850 GMT, while Gallaher Group was off
five pence at 394. British American Tobacco was up three pence at 436.