Are Hibernia’s Proposed Laws Compatible with the EU Internal Market?

Question from Stacey, Are Hibernia’s Proposed Laws Compatible with the EU Internal Market?

Answer from AI:

The government of Hibernia has proposed two significant measures in the Social Protection Bill 2024 that could impact the internal market dynamics within the European Union (EU). These measures include a high tax rate on SUVs and a ban on advertising targeted at minors. To assess the compatibility of these proposals with EU law, particularly in the context of the internal market, several EU principles and directives need to be considered.

Section 1: 90% Tax Rate on SUV Purchases

The proposed 90% tax rate on the purchase of SUVs by the Hibernian government raises questions under EU law, particularly concerning the principles of free movement of goods and non-discrimination. According to the Treaty on the Functioning of the European Union (TFEU):

• Article 34 TFEU prohibits quantitative restrictions on imports and all measures having equivalent effect between Member States.
• Article 110 TFEU states that no Member State shall impose, directly or indirectly, on the products of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.

Given that Hibernia’s auto industry primarily manufactures smaller vehicles, a 90% tax on SUVs could be seen as discriminatory if it disproportionately affects vehicles imported from other EU countries where SUVs are more commonly produced. This could potentially be challenged as a measure having equivalent effect to a quantitative restriction.

Legal advice would be crucial here to determine whether the tax could be justified under any environmental or public health grounds that align with EU objectives, potentially arguing that it is a proportionate means to achieve a legitimate aim.

Section 2: Ban on Advertising Aimed at Under 18s

The proposed ban on all forms of advertising aimed at under 18s to protect children from the effects of advertising and to reduce consumption also needs careful examination under EU law. The EU Audiovisual Media Services Directive (AVMSD) regulates EU-wide coordination of national legislation on all audiovisual media. Key points include:

• Article 9 of the AVMSD allows for restrictions on advertising that could cause physical or moral detriment to minors.
• The directive aims to offer a balanced approach that respects both the protection of minors and the freedom of expression and information as stipulated in the Charter of Fundamental Rights of the European Union.

While the protection of minors is a recognized goal within the EU, a total ban on advertising might be seen as disproportionate if less restrictive measures could achieve the same protection. The compatibility of such a ban would likely depend on whether it can be shown that no less restrictive means could safeguard children effectively.

Consultation with legal professionals specializing in EU media law would be advisable to explore the proportionality and necessity of the advertising ban in light of existing EU directives and case law.

Conclusion

In conclusion, while the intentions behind the Social Protection Bill 2024 may align with public interest goals such as environmental protection and child welfare, the proposed measures could face challenges under EU law for potentially being disproportionate or discriminatory. It is recommended that the government of Hibernia:

1. Conduct a thorough impact assessment of the proposed measures against EU law.
2. Seek legal opinions from experts in EU trade and media law.
3. Consider alternative, less restrictive measures that could achieve the desired objectives without infringing EU principles.

For further guidance, reviewing the Treaty on the Functioning of the European Union and the Audiovisual Media Services Directive could provide additional insights into the legal frameworks involved.