Spain successfully fought off a Belgian challenge, supported by Holland, Finland and Denmark, to the Designation of Origin (the EU system for protecting the names of products made in particular regions of the Union) obtained by Spain in respect of Rioja wine
What happened:
Spain successfully fought off a Belgian challenge, supported by Holland, Finland and Denmark, to the Designation of Origin (the EU system for protecting the names of products made in particular regions of the Union) obtained by Spain in respect of Rioja wine. The aspect of the denomination opposed by Belgium was the rule forbidding the bottling of Rioja outside the Rioja region. The European Court of Justice certainly agreed with Belgium that the rule was a prima facie impediment to the free movement of goods in the single market. It was persuaded by the Spanish arguments, however, that in this case the impediment was acceptable because it was not out of proportion with the need to safeguard the wine’s particular characteristics and protect the goodwill in the Rioja name. The bulk transporting of the wine out of the area which might happen but for the rule, the ECJ agreed, would potentially harm the wine and take the crucial bottling process out of the direct control of those in the area who had the necessary expertise.
Why this matters:
The designation of origin system has been an important weapon in the protection of world-renowned European produce. Whilst the Parma ham producers have unsuccessfully sought to prevent the slicing and packing of their product outside the Parma region in proceedings in the UK, for example, the Rioja producers were able to achieve a better result before the ECJ. Perhaps it was a little easier to show that bulk trans-European haulage and portioning up of wine, as opposed to ham, was potentially damaging to the quality of the product.
