Cyprus: Kiosks in Cigarette Price Dispute

Source from:  InCyprus  07/08/2013

Two associations representing the majority of kiosks and convenience stores yesterday joined forces in calling on their members to boycott a specific tobacco company for 'arbitrarily' lowering their commission to 4% from 6%-7%.

In a circular, the Association of Stores of Convenience (Sykade) and the Association of Cyprus Kiosks of Povek urged their members to boycott the specific tobacco firm from today until their commission returns to previous levels.

"Now is the time to send a strong message of determination to all other tobacco companies and tobacco merchants that similar moves on their part will result in the same dynamic reaction," a statement said.

The associations said their fears that the recently passed law for the obligatory display of maximum retail prices on tobacco products would lead to an effort by tobacco industries and tobacco merchants to bring small and medium family businesses down on their knees proved truthful.

Sykade and the Association of Cyprus kiosks have reported the Republic of Cyprus to the European Commission in relation to the law which has launched an investigation into the matter.

They also reported all tobacco firms to the Competition Protection Commission (CPC) and urged Parliament not to allow the implementation of the specific law on the grounds of their arguments.

"Our reaction has to be immediate, dynamic and comprehensive because the result of this matter will determine the survival of the small and medium family businesses," the organisations said.

There are 2,500 points of sale for cigarettes and tobacco products in Cyprus of which 1,500 are kiosks and the rest supermarkets, bakeries and fruit markets.

The two associations are also preparing to file lawsuits, either as organisations or as individuals, against tobacco merchants in relation to the profit percentage set by tobacco companies for rolling tobacco and cigarettes.

"Our position is crystal clear. We do not accept for the merchant to set our profit percentage. This is not in line with the Constitution and EU laws and there is clearly a violation of free trade, free transactions, open contracts and abuse of power," Sakis Siakopoulos, president of the Association of Cyprus Kiosks told The Cyprus Weekly.

The law for displaying maximum retail prices on tobacco products was due to be enforced in June but tobacco industries and merchants requested a grace period of three months to harmonise with it. Enditem