Questions that the monopoly of tobacconists in the sale of tobacco extends to electronic cigarettes and vapers

MADRID, 21 Oct. (EUROPA PRESS) -

The National Commission of Markets and Competition (CNMC) has criticized the extension of concessions for tobacconists to 30 years, while it has questioned whether the monopoly of tobacconists in the sale of tobacco extends to electronic cigarettes and vapers, products that, in his opinion, should have their own regulation adjusted to their characteristics.

Specifically, the body chaired by Cani Fernández has made a series of considerations on the draft Law on the Market for tobacco and other related products, which aims to extend the monopoly of tobacconists also to the sale of electronic cigarettes and vapers.

Regarding the requirements of the owner of the tobacconist, the CNMC has detected three restrictions that should be reconsidered: direct and personal marketing to the consumer; the requirement of being a natural person; and the fact of not being the owner of another tobacconist or having the authorization for the sale with a surcharge.

Likewise, it recommends eliminating the criterion of minimum distance between tobacconists, in accordance with the principles of good regulation.

Regarding the duration of the concessions, the preliminary draft proposes to increase the duration of the concessions to 30 years, although the CNMC recommends reducing that period, considering the necessary investment and the expected profitability. In this sense, it also recalls the importance of good planning of these instruments.

In its report, the CNMC warns that the model that currently regulates the tobacco market in Spain maintains important restrictions on competition, such as the fact that the State maintains a monopoly in the retail distribution of tobacco.

In this sense, the CNMC considers that the protection of health does not have to be at odds with efficient regulation that promotes competition, and recalls that there are more effective fiscal tools to discourage tobacco consumption.

On the other hand, it welcomes the fact that the preliminary draft brings together in a single law issues regulated in several regulations to achieve greater legal certainty, while highlighting the creation of a public register of associations and interest groups and the improvements in traceability and product safety.

Regarding the content of the draft, the CNMC does not consider it justified to apply the regulation of tobacco products (for example, with sales limitations) to the so-called electronic cigarettes or vapers. In his opinion, they should have their own regulation adjusted to their characteristics.

In the new regulation, the distribution and retail sale of tobacco products continues to be reserved exclusively for certain establishments (tobacconists and points of sale with a surcharge). In addition, the bill extends that monopoly to tobacco-related products.

In this sense, the CNMC recommends that the monopoly be reconsidered in both cases and that alternative intervention instruments be evaluated.

Regarding the authorization of agreements between operators and promotional campaigns for a single product, without questioning the need to control the activity of operators, the CNMC considers that the authorization regime required for agreements should be reconsidered, as well as the requirements for bells.

Likewise, the draft establishes that the retail price of each unit or gram of tobacco may not vary depending on the number of units or grams that the different sizes or types of packaging contain, an issue that the CNMC recommends reconsidering.

On the other hand, the CNMC considers that there is no reason to limit the supply of the point of sale with a surcharge to one of the three closest tobacconists in the municipality, for which it recommends eliminating the restriction.

Likewise, it recommends that the amount of fees for the provision of services to operators and their effective cost orientation be better based.

Regarding the functions of the Commissioner for the Tobacco Market and the regime of infractions and sanctions, Competition proposes to strengthen communication between the Commissioner and the CNMC, as well as to articulate coordination mechanisms in case of doubts about the applicable sanctioning law.

Regarding the transitional regime for the retail sale of tobacco-related products, it recommends that a detailed economic quantification be carried out before setting the term in which the current operators will be able to continue selling their products.

This report has had a dissenting vote from a CNMC advisor.