The European Court of Justice (ECJ) today ruled that France, Austria and Ireland are breaking EU law by imposing a minimum price on cigarettes.

The ECJ dismissed the arguments of these countries that minimum prices of tobacco prodcuts protect public health. Instead, the ECJ ruled that setting minimum retail prices was against the law as it hindered competition. The court also said that the countries had other ways of battling the health effects of smoking, for example by raising excise duties on the products.
In 2008, the European Commission had taken the countries to court for fixing a minimum price for cigarettes and tobacco. The Austrian government had imposed a minimum price of EUR 3.25 for a pack of cigarettes in May 2006. (pi)