EU Council ditches plan to ease cross-border marketing

The proposed EU Sales Promotions Regulation is intended to remove the general bans and restrictions that are applied in a number of Member States, ensuring legal certainty through the application of the principle of mutual recognition. Under the proposed Regulation, services that were lawfully established in one Member State could provide sales promotions freely in the other fourteen. At present, differences in the laws of Member States give problems to businesses wanting to promote their products and services on-line or otherwise across national borders.

Commenting on the developments, Andrew Brown, the Director-General of the Adevertising Association, said:

"If the Spanish Government has reservations about any aspects of the proposed Regulation then it should air these in discussions. It is completely unacceptable for the Spanish Government to use its tenure of the EU Presidency to try and arrest the development of the proposed Regulation before it has been fully considered. This should not be how democracy functions.

"The Regulation being proposed would ensure a level-playing field for the free movement of commercial communications across the EU. The freedom to provide services is a fundamental principle underpinning the Internal Market. Services able to circulate freely within the Internal Market would enhance competition and provide benefits and opportunities to consumers and industry alike."

Phil Murphy, the Association's European Public Affairs Manager, went on to say:

"The AA welcomes assurances from both Internal Market Commissioner Bolkestein and Ward Beysen MEP, who has been charged with writing the European Parliament's Report on the proposed Regulation and leading discussions upon it once it reaches Committee stage, that they do not intend to allow the proposal to be strangled. The UK advertising industry will continue to lobby both at home and at a European level to ensure a fair and democratic hearing for the proposal."