The French Court of Appeal in Versailles dismisses a claim by a pharmaceutical producer that a tax exemption granted to wholesale distributors is State aid, finding that it failed to show the existence of an advantage arising from the exemption (Laboratoires Bristol Myers Squibb)

Factual Background This case is one of a series of cases against pharmaceutical producers and wholesale distributors concerning a provision of the French Code de la santé publique (Public Health Code). This provision obliges pharmaceutical wholesaler to keep a permanent stock of medicinal products sufficient to ensure a month's supply to the pharmacies in its distribution area which it regularly serves as customers and to be able to guarantee delivery of every medicine sold on the market to the pharmacies in its distribution area which it regularly serves as customers and, in the case of medicines in their “range”, within 24 hours of receipt of the relevant order. This obligation is defined as a public service obligation. Article 12 of Law No 97-1164 of 19 December 1997 on social