British American Tobacco has agreed to pay a substantial penalty of $110 million to the Nigerian government for violating both the Federal Competition & Consumer Protection Act and the National Tobacco Control Act.
The resolution comes after an extensive investigation by the Federal Competition & Consumer Protection Commission into a range of anti-competitive behaviors.
The FCCPC, in an official statement, outlined the various violations that led to the imposition of the $110 million penalty on BAT.
These violations encompassed abuse of dominance, attempts to hinder competitors, imposing penalties on retailers for providing equal platforms for competitors’ product display, and introducing products in violation of regulations, among other issues.
“The Commission on August 28, 2020, opened an active investigation with respect to BAT, which 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,” FCCPC stated.
The FCCPC utilized advanced statutory regulatory and investigatory tools, gathering substantial evidence through forensic analysis of electronic communications and other information obtained during searches. The evidence was complemented by additional information from legitimate sources.
Upon the conclusion of the investigation, BAT has been directed to pay a penalty of $110 million and will be subject to compliance and monitoring under the FCCPC’s supervision for 24 months.
The FCCPC emphasized that the sanctions imposed on BAT are designed to bring about appropriate modifications in its practices, fostering compliance with competition laws and regulations, and contributing to ongoing efforts in tobacco control.
Additionally, BAT is required to provide written assurances to the FCCPC in accordance with Section 153 of the FCCPA.
