FCCPC FINES BRITISH AMERICAN TOBACCO $110M FOR MARKET INFRACTIONS

The Federal Competition & Consumer Protection Commission (FCCPC) this Wednesday came to a final resolution with British American Tobacco (Nigeria) Limited and her affiliates to pay a penalty of $110 million for a number in infractions in the year 2023.

This follows an investigation by the commission into a broad range of anti-competitive conduct including abuse of dominance, seeking to frustrate competitors, penalise retailers for providing equal platforms for product display of competitors, product introduction in violation of regulations as well as infringement of public health control regulations.

The defaults were 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 in a statement said on August 28, 2020, it opened an active investigation with respect to 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 with respect to certain conduct, for, by and on behalf of BAT Parties.

Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools, the court issued an Order and Warrant of Search and Seizure. In furtherance, and pursuant to the Order and Warrant, 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.

The Commission said it gathered, received and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence procured during, and after the search from other legitimate sources.

Five agreements were reached which include:(1) 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; (2) That BAT Parties’ shall be subject to a compliance and monitoring under the supervision of the Commission for a period of 24 months to ensure appropriate behavioral and business practices modification to be more consistent with compliance with prevailing competition laws/regulations, and tobacco control efforts; (3) Mandatory public health and tobacco control advocacy in a manner compliant with tobacco control legislation and regulations, and satisfactory to the Commission as mitigation to evidence of a pattern of undermining, and circumventing national tobacco control policies and regulations;  (4) That BAT Parties shall provide Written Assurances to the Commission pursuant to Section 153 of the FCCPA as required; and  (5) In exchange for BAT Parties fulfilling their obligations under the Consent Order, the Commission withdrew pending criminal charges against BATN and at least one employee with respect to obstructing the Commission by attempting to prevent execution of the search warrant and initial lack of cooperation/compliance with steps in the investigation.

The statement added that the Commission remains committed to its mandate to promote and ensure fair markets and protect consumer interests. The outcome of this investigation demonstrates that commitment and the Commission’s desire as well as will to enforce the law and hold businesses accountable; even when it takes complex, painstaking and protracted investigations.