Only one "champagne" will survive

The story is, you have a region in France that produces one of the most popular wine in the world, with outstanding reputation as "the" bottle for celebrations. Then you have a little town in the Vaud Region in Switzerland, that happens to have the same name. Since 2004, as a consequence of the bilateral agreements between Switzerland and the EU, the denomination "Champagne" has disappeared from the labels of the (non-sparkling) wine produced there and replaced with "Libre -Champ". More you can read here. The villagers have decided to go on with the judicial battle, as they claim, their first production of wine started already in 1657. Banning the use of the same name for "competing" products may be plausible in principle, but what's wrong with these bakery products which are very popular in Switzerland?Why is the «Comité interprofessionnel des vins de Champagne» (the French Committee of winemakers of Champagne) complaining also about them??