Spain: Regulator’s recommendations on Designation of Origin laws

Spanish competition regulator CNMC has released its report on a Royal Decree which would seek to further develop local legislation regarding Protected Denominations of Origin and Protected Geographical Indications (IGP). The consumer goods market has shown sustained growth in the number of protected products, and more so regarding their economic value. The model is intended to solve the problem of asymmetrical information between producers and consumers of certain products with highly variable quality.

The CNMC, however, has found the existing model to contain unjustified restrictions to free competition, both within the Royal Decree Project and within the Laws it seeks to develop (which were not formally submitted for review.) The agency has issued a number of recommendations in order to preserve and promote competition and efficient economic regulation. Among these recommendations the CNMC suggests:

That the DOP and IGP regimens be founded on the principles of necessity and proportionality in general, as well as in each measure established in order to comply with these regimens.

That authorities ensure the separation of duties and oversight over DOP/IGP granting.
To eliminate the exclusive, unconditional power for control and issuing of designations concentrated in one single entity.
To adopt in its place a model for official control that includes an open, competitive and transparent process for accessing the organism.

The Agency further recommends that any mentions of the existing licensing body, the ENAC, should be replaced by a generic mention to a National Licensing Entity, in order to avoid discriminating against other EU regulators and licensing bodies.

Full Content: CNMC

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