BRUSSELS UPDATE

28 November 2005


Labelling directive dropped

The European Commission has released details of legislative proposals that it will abandon to simplify European Union (EU) laws and lessen their impact on industry. Brussels is to drop a proposed directive insisting rules for drinks ingredients labelling for beverages containing over 1.2% of alcohol by volume are adopted within a certain timeframe. Both the European Parliament and the EU Council of Ministers have refused to discuss the law since 1999. Another law being dropped is a planned rationalisation of honey labelling regulations.

ISO food chain standard

The International Organisation for Standardisation (ISO) has published its promised new standard for food safety management systems, designed to ensure no weak links in food supply chains, including the packaging sector. ISO 22000 specifies requirements for safety management for canning, boxing, bagging, bottling, sourcing, manufacturing, delivering and selling food products.

The ISO says the standard will help food and packaging companies implement Codex Alimentarius HACCP (Hazard Analysis and Critical Control Point) systems within their manufacturing process.

See: http://www.iso.ch/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=35466&ICS1=67&ICS2=20&ICS3=

Packaging and packaging waste competition report

A detailed report on potential competition concerns regarding the Packaging and Packaging Waste Directive has been published by the European Commission. It aims to steer regulators and companies away from anti-competitive practices.

Noting that packaging waste markets have developed gradually since the mid-1990s, the report notes concerns that some member states might insist collection systems for household packaging waste cover the entire country, saying: "this might render difficult the market entry of new waste management systems", although it would at least prevent operators "cherry-picking" the most profitable regions, notably cities.

Another issue highlighted is that a collective system for household packaging waste could become over-powerful in a marketplace, maybe leveraging prices, especially if it also collects other types of waste. As a result, the report said: "It may be appropriate to prevent a de facto monopoly for household packaging waste from entering the market for commercial packaging waste, or vice versa."

The paper also draws some general conclusions, notably calling on market participants to:

1. prevent potentially illegal anti-competitive practices, such as market sharing, price fixing and the exchange of other sensitive information. Such actions can spark heavy Commission fines;

2. ensure there are choices between several waste management systems for companies obliged to recycle their waste; and

3. avoid exclusive arrangements of any kind, "without solid and convincing economic justification".

See: http://www.europa.eu.int/comm/competition/antitrust/others/waste.pdf




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