E.U. Scolds France Over Cigarette Price Floor

Law360, New York (March 21, 2007, 12:00 AM EDT) -- The European Commission on Tuesday said it intends to take France to the Court of Justice of European Communities for setting a price floor on cigarettes.

Although creating a minimum price for cigarettes may discourage the use of tobacco, it also distorts competition and merely benefits the producers, the E.C. said. Instead, governments should consider imposing additional taxes to attack smoking.

The decision to take the case to court follows the Commission’s warnings last April that it would take action against member states that continued to...
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