The Federal Competition & Consumer Protection Commission
(FCCPC) said the maker of Lucky Strike and Dunhill cigarettes had also
penalised retailers for providing equal platforms for its competitors'
products.
BAT spokesperson Aaron Shardey referred Reuters to BAT's
2023 half-year annual report, which confirmed the FCCPC investigation and
penalty.
The fine is the highest ever levied by the Nigerian
competition commission. FCCPC Chief Executive Babatunde Irukera told Reuters
that the fine is a "consent order", which is equivalent to a plea
bargain and not subject to appeal.
"In resolution of an investigation over a broad range
of anticompetitive conduct including abuse of dominance, seeking to frustrate
competitors...and infringement of public health control regulations, British
American Tobacco and FCCPC entered into a consent order including a penalty of
$110 million," the competition agency said on social media platform X.
The FCCPC said it initiated an investigation into BAT and
affiliated companies in 2020 and obtained a federal court order to search
multiple BAT sites and those of service providers for evidence used in a
forensic analysis.
It added that additional investigation and analysis of
evidence established multiple violations of competition laws.
The FCCPC will monitor BAT for 24 months to ensure
appropriate behaviour and business practice consistent with prevailing
competition laws and tobacco control efforts, the watchdog said.
"In exchange for BAT parties fulfilling their
obligations under the consent order, the commission withdrew pending criminal
charges against BAT Nigeria and at least one employee with respect to
obstructing the commission," FCCPC said. © Reuters
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