The Federal Competition and Consumer Protection Commission has fined British American Tobacco and its affiliate companies $110m.
This followed an investigation over a broad range of anti-competitive conduct, including abuse of dominance, seeking to frustrate competitors, penalizing retailers for providing equal platforms for product display of competitors, product introduction in violation of regulations, among others, and infringement of public health control regulations.
The FCCPC said BAT and other affiliated companies (BAT Parties) infringed the Federal Competition and Consumer Protection Act, National Tobacco Control Act, and sundry legal instruments.
A press release by the commission on Wednesday posted on its official X page noted that it began an active investigation with respect to BAT Nigeria Limited and other affiliated companies (BAT Parties) on August 28, 2020, and opened an active investigation after it received credible pieces of information and intelligence.
Commenting on the resolution, it said, “During the year ending 2023, The Federal Competition & Consumer Protection Commission (Commission) came to a final resolution with British American Tobacco (Nigeria) Limited (BATN, British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc, British American Tobacco (Holdings) Limited (All together referred to as BAT Parties) with respect to a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments.”
The commission said the investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments.
It said that during the investigation and in furtherance of mutual engagements between the Commission and BAT Parties, BAT Parties in writing sought, and the Commission accepted BAT Parties into cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021.
It clarified that this provides for benefits such as possible reduced monetary penalties; waiver of the application of the Commission’s Administrative Penalties Regulations 2020; as well as prosecutorial discretion, particularly Rules 5.1 and 5.3 (subject to compliance with Rules 3 and 5.4).
The FCCPC noted that its penalties were reached upon full consideration of the record, BAT Parties’ additional articulation representations and correspondence.
The verdict of the investigation partly read, “That BAT Parties shall pay a penalty of $110,000,000 (One Hundred and Ten Million Dollars) under and pursuant to Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020 and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021.”
Others include BAT subjecting itself to compliance and monitoring for a period of 24 months to ensure appropriate behavioural and business practices modificationmodification to be more consistent with compliance with prevailing competitions laws, regulations; and tobacco control efforts.
