Subsidiaries of Philip Morris International Inc. (PMI) (NYSE/Euronext
Paris: PM) today filed papers seeking review of the EU’s Tobacco
Products Directive (2014/40/EU) by the Court of Justice of the European
Union (CJEU).
Commenting on the matter, Marc Firestone, Senior Vice President and
General Counsel of Philip Morris International, said:
"We believe that the EU’s Tobacco Products Directive disrupts the
balance that the EU treaties establish between the Union and the Member
States.
“The Directive claims to improve the internal market in tobacco
products, but its provisions go in the opposite direction. The Directive
includes a mix of product bans, mandates, and delegations of authority
that raise serious questions under the EU Treaties about consumer
choice, the free movement of goods, and competition.
“There is no disagreement that there should be strict regulation of
tobacco products, but measures need to make sense and, above all, honor
the EU treaties. We very much hope that this matter is referred to the
EU’s highest court for a careful, objective review.”
PMI filed its papers in the English courts, which have proven to be a
fast and efficient forum for private litigants to obtain references to
the CJEU on issues involving EU law. PMI is seeking review of whether
the Directive complies with the EU Treaties in the following areas:
Legal Competence: The EU has power to take measures that are
genuinely intended to improve the internal market. PMI contends that
several provisions in the Directive run counter that objective. For
example, the Directive bans menthol cigarettes – a product that is
currently legal in all 28 Member States. By making it illegal for adult
smokers in the EU to purchase the product they prefer, the Directive
disrupts the internal market and creates incentives for illicit trade.
Fundamental Rights: The Directive appears to ban truthful and
non-misleading claims on the packaging of tobacco products. PMI intends
to seek review of whether this ban respects the fundamental rights of
consumers to information about the products they are choosing.
Delegated Acts: The Directive delegates a number of powers to the
Commission to enact rules on essential aspects of the Directive. PMI
intends to seek review of whether these delegations comply with the EU
Treaties.
The review process is expected to take up to two to three years.
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About Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide.
PMI’s products are sold in more than 180 markets. In 2013, the company
held an estimated 15.7% share of the total international cigarette
market outside of the U.S., or 28.2% excluding the People’s Republic of
China and the U.S. For more information, see www.pmi.com.
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