The German government has filed an objection to the Tobacco Advertising and Promotions Bill, currently passing through the House of Commons, because it claims it does not conform to European Union and World Trade Organisation free-trade rules.
While the exact details of the German objection remain confidential, it is likely to infuriate the Labour government, which is keen to introduce a ban to meet its 1997 manifesto commitment.
Under EU guidelines, member states must notify the Commission of national legislation that may be seen as a barrier to free trade. This leads to a three-month notification period, during which other member states can object to the legislation.
The challenge means there will now be a further delay of at least three months while the UK government considers its response. If it fails to take account of German concerns, a legal case could ensue.
Labour already faces a race against time to get the advertising ban onto the statute book. Although the Bill has already passed the Committee Stage in the Commons, it still needs to pass the Report Stage and a Third Reading before it gains Royal Assent.
If the bill does not become law before the end of the parliamentary session, the government will have to start the process all over again.
Germany was one of the key opponents of the pan-European ad ban, which was overturned by the European Court of Justice in October 2000 as it was deemed illegal.
"The German government is once again doing the tobacco industry's dirty work, said Clive Bates, director of pressure group Action on Smoking and Health. "It is vital that the UK government presses ahead with the legislation without delay."
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