The manufacturers are contesting the 2002 Tobacco Advertising and Promotion Act, which limits the size and location of promotional material in shops.
The ruling effectively means that the size of the ads now is so small and the location so restricted that they can not be used by more than one brand at a time.
David Pannick, QC for the tobacco firms, argued that the rules were so tough they amounted to an effective ban on informing consumers about products that were legally on sale. He also highlighted that new brands are unable to establish themselves on the market under current laws.
Pannick also claimed that when the law was passed, health secretary Dr John Reid had not properly considered whether imposing tighter restrictions would protect young people from the risk of smoking. Reid is fighting calls for the law to be reviewed.
The court challenge is being brought by six major tobacco players: BAT, Philip Morris, Imperial Tobacco, Gallaher, French manufacturer Societe Nationale and vending machine operator Cherwell Tobacco.
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