Spain: CNMC calls for end to Tobacco-sellers’ monopoly

Spain’s National Commission of the Markets and Competition will seek to end the monopoly enjoyed by the so-called ‘Estancos’, establishments dedicated to the sale of tobacco products, which it has declared to be a distortion of free competition.

In its report, the CNMC considers that rooted restrictions in the tobacco sector should be eliminated, through steps such as “suppressing the monopoly of the tobacco network or at least reconfiguring it in a more competitive manner”. These restrictions have been considered inadequate to protect health, while distorting the market.

In response, the Union of Estanqueros Associations of Spain criticized the regulatory agency for its “absolute ignorance”, defending the current model as being the best option for controlling the collection of tobacco-related tax income.

The CNMC also extends and modifies the regulation on the Tobacco Law, including new decisions regarding the sale and dissemination of so-called electronic cigarettes, restricting their sale and advertising and raising taxes directly on this product.

Full Content: Hispanidad

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