I'm not condoning the non payment of duty. The wine is not being sold, it is given away to those who buy €12 or more of cheese. Is it any different to you giving some bottles of home brew away?
As I said if someone has a problem with the trader then just report him and boycott his stall.
PS has anyone objecting to this practice ever driven without road tax, broken a red light, broken the speed limit, parked on a double yellow, brought home extra booze/fags from the duty free? Just asking.