The Federal Competition & Consumer Protection Commission (FCCPC) has directed British American Tobacco (BAT) and affiliated companies to settle a $110 million fine as part of the resolution for alleged market dominance abuse in Nigeria, which includes violations of public health regulations.
It was revealed that BAT, known for brands like Lucky Strike and Dunhill, was also found penalizing retailers for offering fair platforms to its competitors’ products.
BAT parties will be subject to compliance and monitoring by the FCCPC for 24 months to ensure adherence to appropriate behavioural and business practices. Also, the companies are obligated to engage in mandatory public health and tobacco control advocacy in line with relevant legislation.
What the commission said:
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“The commission on August 28, 2020, opened an active investigation concerning British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties). The commencement of the investigation was based on the commission’s satisfaction that a series of credible pieces of information and intelligence were actionable enough for broader and deeper inquiry,”
“The commission on January 25, 2021, executed simultaneous and contemporaneous searches and seizures at multiple BAT parties locations and a location of a service provider,”
“Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments,” the commission said.
The commission further disclosed that parties associated with BAT, upon fulfilling their commitments outlined in the Consent Order, will witness the withdrawal of pending criminal charges.
These charges are linked to alleged attempts to impede the execution of a search warrant and the initial lack of cooperation during the investigation.
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