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France sued for fixing minimum cigarette retail prices
POSTED: 10:05 a.m. EDT, March 22,2007
The European Commission took France to court on Wednesday against the country's fixing minimum retail prices for cigarettes.

The European Union's executive arm said such prices infringed EU law, distorted competition and benefited only manufacturers, by safeguarding their profit margins.

Price and tax measures are effective means for reducing tobacco consumption, but the measures must be in line with EU rules, the Commission said.

To achieve the objective of reducing tobacco consumption, it would be a better choice to increase the excise duty on cigarettes, the European Commission said.
From:http://english.peopledaily.com.cn
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