Answer to written question on Legality of minimum alcohol pricing under EU competition rules - the Scottish case

WRITTEN QUESTION E-1955/10 by Charles Tannock (ECR) to the Commission

In response to a question I submitted regarding minimum prices for alcohol (E-4681/09), the Commission stated that the Scottish proposal to impose a minimum tariff on alcoholic beverages may not be contrary to EU rules on the free movement of goods, but rather suggests that the proposal could be contrary to EU competition rules. However, the Commission's response does not appear to develop the potential public health case under EU law which could be cited to overcome this.
Could the Commission provide clarification on this point?

E-1955/10EN Answered by Mr Dalli on behalf of the Commission

In reply to the Honourable Member's previous question on this topic, the Commission has set out that minimum pricing might contravene Articles 81 and 82 EC on Competition (now 101 and 102 TFEU).[1] The competition articles do not specifically mention protection of health as grounds to justify restrictions on competition. However, this does not exclude the acceptability of minimum pricing legislation pursuing public health policy objectives. The acceptability of such minimum pricing regulation would rely on a proportionality test assessing the extent to which such regulation is necessary to attain public health objectives and is the least restrictive of competition.

The Commission fully shares with the Honourable Member the conviction that there are strong public health reasons for the EU to tackle alcohol related harm including minimum pricing measures.

Harmful and hazardous alcohol consumption is the third highest risk factor for disease and premature death in the European Union. Each year an estimated 195.000 citizens die prematurely as a result of alcohol related harm. Harmful alcohol consumption is amongst the causes of some 60 health problems including lung diseases, breast cancer, mental and behavioural disorders, cardiovascular problems, foetal and reproductive disorders. This is the reason why the Commission adopted an EU alcohol strategy in 2006, which received the support of the Parliament and the Council.

As far as minimum pricing is concerned, research conducted by Sheffield University[2], highlighted that 64% of all cheap off-trade alcohol is consumed by harmful drinkers (and only 9% by moderate drinkers). This research concluded that harmful misuse of alcohol is concentrated on certain population groups who are likely to be most influenced by minimum prices. Minimum pricing therefore has the potential to successfully target these vulnerable groups rather than the majority of moderate drinkers.

[1] Answer given by Mr Verheugen on behalf of the Commission, 19 November 2009 (E-4680/2009).
[1] News release "Sheffield report analyses effects of alcohol pricing and promotion policies", http://www.shef.ac.uk/mediacentre/2008/1128.html. The report can be downloaded from the website of the UK Department of Health that commissioned the research: http://www.dh.gov.uk/en/Publichealth/Healthimprovement/Alcoholmisuse/DH_4001740