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Smoking ban dents German cigarette sales

Tobacco companies are seeing sales in Germany drop after a ban on smoking in public offices, bars and restaurants, according to media reports on Friday.

Smoking ban dents German cigarette sales
Photo: DPA

Taxed sales of cigarettes dropped 8.7 percent in the first three months of this year, regional newspapers Stuttgarter Nachrichten and Kölnische Rundschau reported, citing data from the German Statistical Office. Sales of cigars and cigarillos dropped an even more precipitous 36 percent.

“We expect our sales to drop 3 percent to 5 percent because of the smoking ban,” a spokesman for the tobacco company Reemtsma, makers of West cigarettes, told the two newspapers.

The spokesman said the drop would be visible in Reemtsma’s financial figures to be issued on Tuesday.

But the tobacco market in Europe in general is becoming weaker, said Marianne Tritz, secretary of DZV, a German cigarette industry association. Tritz said a general market decline could also be a contributing factor in the first quarter’s weak numbers.

“It is still difficult to say how much of the losses are due to the smoking ban,” Tritz said.

Small pubs and dance clubs in Germany have complained of massive losses due to the smoking bans phased in across the country in the past year.

The German constitutional court in Karlsruhe will decide on June 11 whether the smoking ban is an invasion of property rights and the right to practice a trade.

BUSINESS

French court hands Amazon €90,000-per-day fine over contracts

French authorities on Wednesday slapped a €90,000-per-day fine on e-commerce giant Amazon until it removes abusive clauses in its contracts with businesses using its platform to sell their goods.

French court hands Amazon €90,000-per-day fine over contracts

The anti-fraud Direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF) service said the online sales giant’s contracts with third-party sellers who use its Amazon.fr website contain “unbalanced” clauses.

“The company Amazon Services Europe did not comply completely with an injunction it was served and it is now subject to a fine of €90,000 per day of delay” in applying the changes, the DGCCRF said in a statement.

It also urged the platform to conform with European rules on equity and transparency for firms using online platforms.

Amazon said the order would harm consumers.

“The changes imposed by the DGCCRF will stop us from effectively protecting consumers and permit bad actors to set excessive prices or spam our clients with commercial offers,” the e-commerce giant said in a statement.

“We will comply with the DGCCRF’s decision but we absolutely do not understand it and we are challenging it in court,” responded the e-commerce giant in a statement.

Amazon said the clauses that the DGCCRF has ordered removed had, for example “prevented the appearance of exorbitant prices for mask and hydroalcoholic gel during the pandemic”.

In 2019, Amazon was fined €4 million for “manifestly unbalanced” contract clauses with third-party sellers on its site in a case brought by the DGCCRF.

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