Subsidiaries of Philip Morris International Inc. (PMI) (NYSE/Euronext
Paris: PM) today obtained a green light from an English Court to
challenge the EU’s Tobacco Products Directive (2014/40/EU) before the
Court of Justice of the European Union (CJEU). Key questions regarding
the Directive’s validity will be referred to the CJEU as ordered by Mr.
Justice Turner during a hearing at the Royal Courts of Justice.
Commenting on the decision, Marc Firestone, Senior Vice President and
General Counsel of Philip Morris International, said:
“This marks an important first step for our challenge of the EU’s
Tobacco Products Directive. We believe the Directive disrupts the
balance that the EU treaties establish between the Union and the Member
States, and we are looking forward to a thorough, objective review by
the EU’s highest court.
“There is no disagreement that tobacco products should be strictly
regulated, but measures must honor the EU treaties. The Directive
purports to improve the internal tobacco market, yet instead 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.”
PMI requested the reference to the CJEU when it filed its case on June
27, 2014. The company is seeking a review of whether the Directive
complies with the EU Treaties in the following areas:
Legal Competence: The EU’s power to adopt the Directive under the
EU Treaties is limited to measures that improve the internal
market in tobacco products. While the Directive claims to serve that
objective, it demonstrably lacks any real internal market rationale. For
example, the Directive claims to be harmonizing differences in Member
State laws by forcing Member States to ban menthol, even though menthol
is legal in all 28 Member States. Meanwhile, it actively encourages
disharmonization by inviting Member States to adopt a patchwork of other
measures such as “plain packaging” even though they obstruct the free
movement of goods and violate EU law. Provisions such as these ignore
clear precedent from the CJEU establishing the limits of the EU’s
authority under the Treaties, and create obvious incentives for illegal
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 of power comply with
the EU Treaties.
The CJEU is expected to issue a judgment within two years.
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 28.3% excluding the People's Republic of
China and the U.S. For more information, see www.pmi.com.
Copyright Business Wire 2014