🇪🇺 Regulation of Cannabis and CBD in European Law

The commercialization of legal cannabis (cannabis light) and Cannabidiol (CBD) products is a subject primarily governed by the fundamental principles of the European Union, particularly those related to the free movement of goods within the single market.

The Ruling of the European Court of Justice (ECJ)

The European legal framework was definitively clarified by a 2020 ruling from the European Court of Justice (ECJ):

• The ECJ established that CBD cannot be considered a narcotic, provided it is extracted from the entire hemp plant (Cannabis Sativa L.).
• This classification implies that CBD products must be able to benefit from the principle of free movement of goods guaranteed by the articles of the Treaty on the Functioning of the EU (TFEU).
• The ruling dictates that CBD legally produced in one Member State must be freely marketable in all other countries of the Union.

Single Market Principles (Articles 34 and 36 TFEU)

National regulations that restrict the trade of CBD and hemp flowers are subject to the control of the single market principles:

• Any national restriction on commercialization is considered a violation of Articles 34 and 36 TFEU, which prohibit measures equivalent to quantitative restrictions between Member States.
• Restrictions are permissible only if justified by imperative reasons of general interest (such as public health protection), but they must be proportionate and not constitute a means of arbitrary discrimination.
• The European Industrial Hemp Association (Ehia) has expressed concern regarding any national industry blockage, highlighting that it would disadvantage that nation compared to other Member States that permit the development of this industry.

The Role of the European Commission

The European Commission acts as the guarantor of Community law, intervening when national regulations appear to violate the TFEU principles:

• Following complaints from trade associations (like Canapa Sativa Italia, CSI), the Commission examines restrictive measures to verify their compliance with European law.
• The Commission may initiate an infringement procedure against a Member State if it detects a potential violation of European regulations on free competition and the free movement of goods.
• Intervention from Brussels is considered crucial to ensure compliance with Community law and prevent national decisions from hindering the development of a vital and innovative industrial sector that operates in compliance with EU rules.