The European Court of Justice gave victory to major beverage producers such as Coca-Cola by ordering Germany to change rules that place obstacles on imports from neighboring countries and protect dome…
The European Court of Justice gave victory to major beverage producers such as Coca-Cola by ordering Germany to change rules that place obstacles on imports from neighboring countries and protect domestic brands from competition. The decision by the court in Luxembourg on 14 December 2004, obliges Germany to change a policy which favors returnable containers such as glass bottles, and to allow the use of disposable containers such as plastic bottles and cans, which are easier to transport over long distances. The ruling was hailed as a victory for common sense by Julian Carroll, the managing director of Europen, a Brussels-based packaging association with 50 member companies including Coke, Nestle SA and Groupe Danone. “We“ve long believed that Germany“s regulations are trade protection masquerading as environmental protection,” Carroll said. Germany“s rules were particularly resented by French mineral water importers, which first complained to the European Union Commission in 1992. The water companies said the rules forced them to make costly trips back to their springs to refill their empties, giving local German water bottlers a significant cost advantage. EU Commission regulators took Germany to court in December 2001 for raising expenses for producers outside the country and blocking the smooth working of the EU“s internal market. On 14 December 2004, the court mostly agreed with the regulators. Judges said Germanys failure to provide an adequate nationwide system for collecting and recycling plastic bottles and cans effectively discriminated against foreign firms. The court also told Germany to ensure consumers can recover their deposits on plastic bottles and cans in a far wider variety of deposit points, and to give drink makers a long enough period to prepare their businesses for compliance with any new system. Although the court ruling specifically concerned mineral water, EU Commission spokesman Gregor Kreuzhuber said the decision will “have a broader impact” on sales of beer and soft drinks. Rainer Baake, the secretary of state at Germany“s Environment Ministry, said his government would now work with EU authorities to come up with a legal reuse and deposit regime for bottles. Those changes may be in place by March 2005 if EU officials approve upcoming changes to Germany“s rules. According to an EU official close to the matter, forthcoming amendments to go before the Bundesrat, or upper house of the German Parliament would oblige retailers to refund deposits on all cans and plastic bottles, as long as those items are made of the same materials that retailers already offer for sale. The official said the EU is prepared to accept a compromise that still allows German retailers to refuse consumers seeking refunds, but only where those retailers do not stock any drinks for sale in plastic bottles or cans.