EU Investigates UIGEA DiscriminationNew Probe on U.S. Ban on Internet Gambling Launched by EU Trade Commissioner |
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The European Commission today launched an investigation into “United States measures affecting foreign suppliers of Internet gambling services,” effectively an inquiry into the Unlawful Internet Gambling Enforcement Act, which prevents European-based firms from competing in the U.S. market.
The Commission is acting on a complaint from the UK-based Remote Gambling Association (RGA), which says that “the U.S. should not be allowed to enforce gambling laws selectively against foreign suppliers.”
EU Trade Commissioner Peter Mandelson says, “The U.S. has the right to address legitimate public policy concerns relating to Internet gambling, but discrimination against EU companies cannot be part of the policy mix. We are interested in a constructive and mutually satisfactory solution to this issue.”
Mandelson’s office says, “The challenge made by the RGA concerns the fact that laws and regulations that ban the supply of Internet gambling into the United States market were already in place at a time when the U.S. had WTO commitments allowing such services. They also claim that the U.S. is now selectively enforcing these laws against foreign suppliers, for online gambling services which they offered in the past. Industry therefore argues that the United States measures violate Articles XVI (market access) and XVII (national treatment) of the GATS (General Agreement on Trade in Services).”
The Commission will take five to seven months to complete its investigation. It also stressed that the RGA complaint and its subsequent investigation are separate from the December 2007 compensation package agreed between the two jurisdictions.
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