Belgian brewers must swallow TV advert challenge

Date: 12/09/1996

By Chris Johnstone

BELGIUM is to bow to European Commission pressure and allow drinks advertising on television for stronger substances than beer.

The move follows a Commission challenge to Belgian rules which ban the advertising of drinks with an alcohol content of more than 10&percent; on public television.

Internal market officials, acting on a long-standing complaint, said the advertising ban amounted to a competitive handicap for wine, most of it imported, and was protecting Belgium's world-famous brewing industry.

Belgium's francophone community says it has now drafted a new contract with its public television company, RTBF, which would allow advertisements for drinks with an alcohol content of up to 20&percent;. This would easily cover fortified wines.

But it is asking the Commission to be patient, since the new code will not come into force until the end of the year.

“We have asked the Commission for a bit more time,” said a francophone official, adding: “We do not expect any problems with the 20&percent; rule since similar regimes have been accepted by the Commission in other countries.”

The Commission's action was aimed only at Belgium's French-speaking public television since its Flemish counterpart has an across-the-board ban on advertising.

The Belgian brewing industry is no small beer, with its thirsty nationals fifth in the European league table of individual consumption. The Belgium-based multinational Interbrew is a world force in the industry.

Interbrew has already been disciplined by DGIV, the Directorate-General for competition, for attempting to ban the resale in Belgium of some of its cheaper-priced drinks on sale in neighbouring countries.

The Interbrew ban was aimed at supporting prices in its domestic market, but it clashed head on with a DGIV drive to stop companies from segmenting their markets by preventing so-called 'parallel' imports.

The Commission is still waiting for a French reaction to separate demands that Paris lift restrictions on television broadcasting of sports events where alcohol and tobacco advertising takes place.

This challenge goes to the heart of arguments over what level of national health protection measures are acceptable before they start conflicting with the single market.

The French law has actually resulted in TF1, France's most popular television channel, being banned from showing non-domestic European football matches it was lined up to screen.

French officials say they are still holding talks with the Commission and will not respond to its challenge until they have taken delivery of the text of the Commission's complaint over the so-called Loi Evin.