Sweden banned advertisements for alcohol on the radio, TV and in magazines totally. Sweden argued the measure was lawful because there had been a constant increase in wine sales, mostly imports, and additionally that the ban applied to all alcohol, whether Swedish or not, and so the ban did not have a disproportionate impact on importers.
AG Jacobs highlighted that Swedish producers dominated the strong beer market. This was shown by Gourmet's statistics. Ingrained consumer habits would favour national beer.
The Court of Justice held the law infringed art 34 but it could be justified on public health grounds if it was proportionate. The ban having an effect on cross-border supply of advertising space breached TFEU art 56 on free movement of services, but this could again potentially be justified on grounds of public health. The court held that it was therefore the role of national courts to decide on a case-by-case basis whether the prohibition in question was proportionate.