The case arose from criminal proceedings brought against Harry Franzén in the Landskrona District Court for unlawfully selling and holding alcoholic beverages in breach of the Alkohollag 1994:1738 of 16 December 1994 (Swedish Law on Alcohol). This Law aims to limit consumption of alcoholic beverages, in particular those with a high alcoholic strength, in order to reduce the harmful effects of their consumption on human health. The Landskrona District Court has asked the Court of Justice whether the retail monopoly provided for by Swedish legislation is compatible with the Treaty of Rome.

In Sweden, the retail of alcoholic beverages is carried out under a monopoly held by Systembolaget. Alcoholic beverages may be ordered and delivered in 384 State monopoly "shops", in about 550 other sale outlets, along 56 bus routes and on 45 postal rounds. The Swedish Law provides that Systembolaget may obtain supplies only from holders of production or wholesale licences, the issue of which is made subject to restrictive conditions by the Swedish Alcohol Inspectorate.

According to the Court, the system by which Systembolaget selects products is based on criteria which are independent of their origin, non-discriminatory and not liable to put imported products at a disadvantage. Despite the restricted number of sales outlets, the monopoly, as it is structured, does not compromise the obtaining of supplies of national or imported alcoholic beverages by consumers. The mode of promotion used by the monopoly applies independently of the origin of products and is not liable in itself to put beverages imported from other Member States at a disadvantage in relation to those produced in Sweden.

The Swedish retail monopoly pursues a public health aim; its criteria and methods of selection are neither discriminatory nor liable to put imported products at a disadvantage.

However, the provisions of Swedish legislation allowing only traders holding a production or wholesale licence to import alcoholic beverages hinder trade between the States of the Community because they create additional costs for imported alcoholic beverages which are not borne by Swedish drinks.

Such an obstacle is not permissible for the sake of protecting public health because, according to the Court, this aim could be achieved by measures less restrictive of intra-Community trade. The Treaty of Rome therefore precludes national provisions, such as those laid down by Swedish legislation, allowing only traders holding a production or wholesale licence to import alcoholic beverages.

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For further information, see the Homepage of the Court on the Internet: www.curia.eu.int, or contact Tom Kennedy (tel: 352 4303 3355, fax (352) 43 03 25 00).