FCCPC Nigerian competition watchdog fines BAT $110m for violations
Nigeria’s competition watchdog Federal Competition & Consumer Protection Commission (FCCPC) on Wednesday ordered British American Tobacco (BAT) (BATS.L) to pay a $110 million fine following allegations of market dominance abuse and infringement of public health regulations.
In a statement released on X, the commission clarified that the fine was determined through mutual engagement with BAT under the FCCPC’s Cooperation/Assistance Rules & Procedure (CARP) 2021. This framework offers potential benefits like reduced penalties and waiver of certain regulations for companies willing to cooperate.
“In the resolution of an investigation over a broad range of anticompetitive conduct including abuse of dominance, seeking to frustrate competitors, penalize retailers for providing equal platforms for product display of competitors, product introduction in violation of regulations among others, & infringement of public health control regulations British American Tobacco & FCCPC entered into a consent order including a penalty of $110 million during 2023,” the statement reads.
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.
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.
Additionally, they will be required to undertake a mandatory public health and tobacco control advocacy campaign compliant with relevant laws and regulations.
The BAT parties will provide written assurances to the Commission as per Section 153 of the FCCPA. In exchange for fulfilling their obligations under the Consent Order, the Commission has withdrawn pending criminal charges against BAT Nigeria and one employee for obstructing the execution of a search warrant and initial lack of cooperation during the investigation.
“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.
