Press Release: Excise duties / Minimum retail prices of cigarettes: Infringement proceedings against Ireland

The European Commission has decided to send Ireland a reasoned opinion – the second stage in the infringement procedure provided for in Article 226 of the EC Treaty – because of the fixing of minimum and maximum retail prices for cigarettes by that country. The Commission takes the view, based on well established case law of the Court of Justice of the European Communities, that such prices infringe Community law, distort competition and benefit only manufacturers, by safeguarding their profit margins (see IP/06/483). Unless the legislation in the Member States concerned is brought into compliance within two months of receipt of the reasoned opinion, the Commission may decide to refer the case to the Court of Justice of the European Communities.