EC Warns Austria, Ireland, Italy Over Price Floors

Law360, New York (July 2, 2007, 12:00 AM EDT) -- The European Commission has issued a formal warning to Austria, Ireland and Italy over legislation that sets a minimum price for cigarettes, telling the member states that if they do not amend the regulations, the Commission will initiate litigation.

The EC told the countries on Monday that “minimum prices breach Community legislation and distort competition.” The EC has made its requests in the form of a reasoned opinion, the second stage of enforcement proceedings as dictated by EU law.

The Commission said that if the member...
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