Press Release: Excise duty/cigarettes: Minimum retail prices of cigarettes. Infringement proceedings against France and Belgium

The European Commission on 28 June 2006 decided to send France and Belgium 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 retail prices for cigarettes by those countries. The Commission took 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.