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EU Court rulings reduce confidentiality safeguards for chemical companies

Date

23 Nov 2016

Sections

Innovation & Enterprise
Trade & Society

Brussels, 23 November 2016 – Today’s rulings by the EU Court of Justice set a potentially dangerous precedent for the protection of confidential business information submitted by companies for EU substance and product registrations and approvals.

The Court’s extensive interpretation of the EU Aarhus Regulation ‘emission clause’ will make it easier for any member of the public – and any competitor in Europe and abroad - to access valuable commercial data submitted by business to EU authorities even if this is proven to cause harm.

Marco Mensink, Director General of Cefic, the European chemical industry council, said: “While understanding legitimate public interest in transparency, there has to be consideration for situations where making confidential business information public exposes a company to competitive risk. How can a company confidently invest in developing new products or processes when its competitive edge can be given away?”

Confidentiality protection is a fundamental part of existing EU chemicals laws such as REACH and biocides legislation, so that competitors are prevented from accessing commercially valuable data. One of the most valuable assets of a chemical company is considered to be the composition and method of manufacture of its products. If obtained by competitors at low cost, the innovator is deprived of the expected return on investment and may suffer up to 60 - 70% global sales in niche markets.

Contact: Dervla Gleeson, Cefic Media Relations Manager (dgl@cefic.be, +32 (0)2 676 7289)

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