WRITTEN QUESTION No. 1763/98 by Werner LANGEN to the Council. Price agreement between the French cigarette industry and the French Government
C 354/122 EN Official Journal of the European Communities 19. 11. 98 (98/C 354/197) WRITTEN QUESTION P-1762/98 by Werner Langen (PPE) to the Commission (29 May 1998) Subject: Price agreement between the French cigarette industry and the French Government In November 1997 an additional 2. 5% duty on tobacco was supposed to be introduced in France on financial and health policy grounds. However, the government agreed with the French cigarette manufacturers on a minimum consumption duty to be levied per unit of 1 000 cigarettes, thus removing the price advantage of multipacks. This agreement was reached without consulting, for example, the Hamburg firm of Reemtsma, which, like some of its competitors, sells various products on the French market. The price declaration submitted by Reemtsma in relation to imports of two of its products (West and West Light, in packs of 25) was rejected by the French Ministry for Economic Affairs and Finance by reference to the agreement reached with the domestic industry. Approval would be granted only if the price was substantially raised. The two products were not included in the áarrete· díhomologationí (official approval) issued at the end of 1997. There was no response to a further price declaration submitted on 28 January 1998. In a conversation early in March, Reemtsma was quoted a price which would secure approval, but the company rejected that option on market strategy grounds. Further conversations did not produce any progress. Article 85 of the EC Treaty prohibits áagreements between undertakings (. ) which have as their object or effect the prevention, restriction or distortion of competition within the common market, and in particular those which: (a) directly or indirectly fix purchase or selling prices (. )í In view of the foregoing, 1. Does the Commission regard this direct fixing of a minimum price by the French cigarette industry, by agreement with the French Ministry for Economic Affairs and Finance, as an infringement of the competition laws deriving from Article 3(g) of the EC Treaty in conjunction with Article 85? If so, what steps will it take to remedy the situation? 2. Does the Commission know the grounds on which the French Government permits and justifies this form of horizontal cartel, by means of which the price or minimum price is directly fixed? Answer given by Mr Van Miert on behalf of the Commission (17 June 1998) The Commission is conducting a detailed investigation of the problem raised by the Honourable Member and will inform him of the outcome as soon as possible. (98/C 354/198) WRITTEN QUESTION E-1763/98 by Werner Langen (PPE) to the Council (8 June 1998) Subject: Price agreement between the French cigarette industry and the French Government In November 1997 an additional 2. 5% duty on tobacco was supposed to be introduced in France on financial and health policy grounds. However, the government agreed with the French cigarette manufacturers on a minimum consumption duty to be levied per unit of 1 000 cigarettes, thus removing the price advantage of multipacks. This agreement was reached without consulting, for example, the Hamburg firm of Reemtsma, which, like some of its competitors, sells various products on the French market