The European Commission is to take the French Government to court over the advertising restrictions it places on the re-transmission of sporting events held in other countries.
A French penal law called the “Loi Evin” prevents alcoholic beverages being advertised on French TV and is causing legal problems for advertisers and sports events organisers involved in fixtures that are broadcast in France.
Billboard advertising is covered by the ban meaning that sports events carrying perimeter advertising for alcoholic beverages cannot be re-transmitted in France, subject to restrictions.
After the law was adopted in 1991, French Broadcasters blocked certain re-transmissions of major sporting events for fear of breaking the law.
The European Commission has decided that these restrictions are incompatible with the EC treaty on the free movement of services within the Internal market and argues that billboards that are in the background of sporting events are less likely to attract attention than a billboard at a bus stop. The commission feels that less trade restrictive and more effective measures should be developed to address what it recognises as a public health risk.
The restrictions were the basis for an English High Court action brought by Bacardi-Martini and Cellier des Dauphins against New Castle United in 1996. The advertisers had arranged for parameter advertising at the UEFA cup tie against Metz in December, but Newcastle instructed the agents to remove the advertising as the club would have lost re-transmission rights as a result of the French ban. In July 2000, the UK High Court referred the case to the European Court of Justice to determine whether the law was compatible with the EC treaty. A decision is expected by the end of the year.
The EC’s decision to take the French Government to the European High Court will step up the pressure to change the law and a decision could be made well before the standard three or four years.
A change in the law would be welcomed by the commercial communications industry, advertisers and sports rights owners, who would be free from legal uncertainty and red tape.
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