The EU Commission believes that the proposal is contrary to competition law, disproportionate, inconsistent and discriminatory against foreign products. The government will amend the law in January.
The EU Commission is demanding that Finland change its proposal on online shopping and home delivery of alcohol, because it is contrary to EU competition law.
According to the Commission, the bill does not treat domestic and foreign online shopping equally.
The Commission criticizes that the law could favor Alko and domestic companies.
Minister of Social Security Sanni Grahn-Laasonen announces that the government will make the necessary changes to the proposal during January.
The European Commission rejects the government's draft law on the online sale and home delivery of alcohol. The Commission considers the proposal to be in breach of EU competition law, so it must be amended.
The proposal would allow Alko, grocery stores, domestic microbreweries and producers of estate wines to sell alcohol online and deliver it directly to consumers.
According to the Commission, in its current form, the law would favor Alko and Finnish online stores at the expense of online sellers in other member states. The Commission considers the proposal to be in breach of EU competition law, such as the free movement of goods and the prohibition of discrimination.
A system should be created in which domestic producers and producers from other Member States are not discriminated against in the context of online alcohol sales, says Juha Raitio, a professor of European law who has read the Commission's statement.
Commission statement:
Given the current uncertainty in Finland, the notified draft calls into question the proportionality of the entire licensing system and in particular the proposed supply licence, which appears disproportionate, inconsistent and potentially discriminatory insofar as it would direct demand towards the aforementioned local products.
The Commission also draws attention to the fact that the legal status of alcohol ordered online from abroad and transported to Finland is still unclear in the Alcohol Act. Finland has been in the EU Pilot procedure on the matter for about three years now.
The Commission criticizes the fact that Finland appears to require retail sales and delivery permits from all companies that want to sell and transport alcohol to Finnish consumers. The Commission fears that the requirement would also apply to companies from other EU countries, which would limit or make it more difficult for them to sell and deliver alcohol to Finland. This would in practice mean a quantitative import restriction that is prohibited.
Finland has obtained an exemption from Alko’s monopoly on public health grounds upon joining the European Union.
Alko has the exclusive right to retail alcohol in Finland, but shops, kiosks and petrol stations can apply for a licence to sell up to 8% alcohol produced by fermentation, i.e. mainly beer, wine and cider.
Beverage manufacturers have complained to the Commission about the change that came into force last June.
Producers of craft beers and estate wines also have the right to sell their products on a small scale at the place of production. The Commission points out that if domestic online sales and home delivery of alcohol are expanded in accordance with the government's proposal, the operation will no longer be small-scale and the sales will not be tied to the place of production.
Domestic and foreign online sales to be treated together
The EU Commission will also take a position on the long-debated distance sales of alcohol, i.e. alcohol ordered to Finland from foreign online stores.
There is no clear article on the matter in the Alcohol Act, so Finnish authorities have sometimes interpreted it as prohibited. Currently, alcohol can be imported as long as the seller or buyer pays taxes to Finland.
The government's intention is to include a clear section in the law allowing the sale and transport of alcohol from foreign online stores. The Commission also demands that in connection with the online sale and delivery of domestic alcohol, foreign distance selling must also be clarified.
Yes, the national legislation on this must be clarified at the latest after the Commission's statement. The conclusion from this is that legislation on distance selling and delivery sales should be made simultaneously, and not as if sprinkled separately, says professor Raitio.
Otherwise, the bill on home delivery will only add to the unclear legal status of cross-border distance selling.
Commission statement:
It seems unjustified and potentially discriminatory to postpone clarifying the legal status of distance selling from abroad while establishing a clear system for online sales and deliveries by domestic retailers.
Minister of Social Security responsible for alcohol issues Sanni Grahn-Laasonen tells Yle that the government will supplement the bill on home delivery.
We will make the necessary and sufficient additions to it during January, which will also clarify cross-border distance selling. This is part of the broader comprehensive reform of alcohol legislation that is in line with the government programme and scheduled for this spring.
During the preparation, it will be clarified whether amending the Home Delivery Act is sufficient or whether a separate bill is needed for foreign online shopping.
We are now focusing on the content, which is that the Commission very directly requires that at the same time as domestic delivery sales are enabled in Finland, cross-border distance sales are also clarified to be unambiguously permitted.
The minister is not surprised by the Commission's strict stance. According to her, the Commission's long-standing line has been that the free movement of goods also applies to alcohol sales. According to Grahn-Laasonen, the statement provides more support for implementing the entries in the government programme.
The bill on home delivery of alcohol was originally supposed to come into force at the beginning of this year, but its consideration in Parliament was left unfinished due to the backlog in the Social Affairs and Health Committee at the end of the year.
The statement issued by the Commission in mid-December means that the law cannot be implemented in practice before the changes are made.
In any case, allowing online sales and home delivery of alcohol will be delayed from planned, as legislation usually includes a transition period of at least a few months.
The Commission is threatening Finland with infringement proceedings and referral to the EU Court of Justice if Finland does not change the points considered problematic.
Source: Yle (in Finnish)
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