Philip Morris demands review of Tobacco Products Directive

Subsidiaries of tobacco giant Philip Morris International today filed papers seeking review of the EU’s Tobacco Products Directive, by the Court of Justice of the EU.

Marc Firestone, Senior Vice President and General Counsel of Philip Morris International, said: "We believe that the EU’s Tobacco Products Directive disrupts the balance that the EU treaties establish between the EU and member states."

The TPD introduces stricter anti-smoking rules, and was in part responsible for the resignation of Maltese commissioner John Dalli in October 2012 when a Philip Morris related company - Swedish Match - claimed Dalli was aware of an attempt to bribe the company to reverse an EU ban on smokeless tobacco snus.

“The Directive claims to improve the internal market in tobacco products, but its provisions go in the opposite direction. The Directive includes a mix of product bans, mandates, and delegations of authority that raise serious questions under the EU Treaties about consumer choice, the free movement of goods, and competition," Firestone said.

“There is no disagreement that there should be strict regulation of tobacco products, but measures need to make sense and, above all, honours the EU treaties. We very much hope that this matter is referred to the EU’s highest court for a careful, objective review.”

PMI filed its papers in the English courts, which have proven to be a fast and efficient forum for private litigants to obtain references to the Cuurt of Justice of the EU on issues involving EU law. PMI is seeking review of whether the Directive complies with the EU Treaties in the following areas:

PMI contends that several provisions in the Directive run counter that objective. For example, the directive bans menthol cigarettes – a product that is currently legal in all 28 Member States. PMI claims that making it illegal for adult smokers in the EU to purchase the product they prefer, disrupts the internal market and creates incentives for illicit trade.

PMI says the TPD appears to ban truthful and non-misleading claims on the packaging of tobacco products and intends to seek review of whether this ban respects the fundamental rights of consumers to information about the products they are choosing.

The review process is expected to take up to two to three years.