The policy would have forced restaurants to only serve olive oil in tamper-proof packaging, labelled to European Union standards, as of next year. The EC initially said that it wanted to protect consumers from "dodgy olive oil" and improve its quality and authenticity.
However, critics including Prime Minister David Cameron accused the EU of meddling.
Announcing the climbdown, EU Agriculture Commissioner Dacian Ciolo? confirmed that he had taken the decision once it became clear that consumers were against the plans.
He said he would convene producers, traders, restaurateurs and consumers "round the same table" in a bid "to find a better way".
In a statement, the EC said that Commissioner Ciolo? will meet all parties concerned (consumers, restaurants, etc) in order to find the best way to ensure consumer protection and quality guarantees, while not imposing disproportionate regulations. He has invited representatives from these groups to meet him in Brussels before the end of the month.
