Tuesday 10 November 2009

Philip Morris protects the Irish smokers

The large manufacturer of tobacco products Philip Morris International plans to challenge the decision of the Irish government according to which open realisation of cigarettes in shops is not authorised. Lawyers of the tobacco company consider that this law is infringement of the rights of smokers and the tobacco companies, and also promote blossoming of illegal trade and manufacture.

The new act has started to operate about 01.07.2009 years. Owners of shops in Ireland have no right to place tobacco products on show-windows, and are obliged to hold them under counters.

The law became a part of antitobacco campaign which is spent to Ireland. Since 2004 smoking on workplaces, and also in bars and restaurants here is forbidden. The government considers that the innovation will promote struggle against a bad habit among teenagers.

Lawyers of legal office Matheson Ormsby Prentice which will represent Philip Morris International in court, are convinced that new rules are antimonopoly law infringement, doing almost impossible a conclusion to the market of a new product.

Denis Kutishenko, the partner of legal company Incor Alliance Law Office, assumes that the similar appeal to the antimonopoly law will not pass in court, as for all participants of the market identical conditions are created.

Representatives Philip Morris International consider that the new law will seriously strike on small ритейлерам which can lose to 70 percent of the receipts. By estimation, losses of each shop will make from 2 to 5 thousand pounds sterling that will cause replacement from the market of small players.

The tobacco company is afraid also of increase in a share of the illegal market and considerable growth of contraband and manufacture of counterfeit production. For today about third of cigarettes sold in Ireland are the illicit goods, and this indicator can grow considerably. Manufacturers are afraid that Ireland will follow by the way of Canada where the share of the black market makes not less than half, and the budget receives less about 2 billion dollars because of strict legislative restrictions.

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