A plan by three major tobacco companies to cooperate on stopping deliveries to retailers and wholesalers suspected of dealing in illicit product may be blocked by the Australian Competition and Consumer Commission (ACCC).

ACCC has issued a draft determination to block the proposed cooperation by Britsh American Tobacco, Imperial Brands and Philip Morris International, the regulatory body said in a statement. “The ACCC is concerned about the potential for the sharing of information broadly, and that, for example, the proposed arrangements could be used to selectively target retailers that stock competing brands. This could result in detriment to businesses that may be wrongly or mistakenly subject to a joint decision of the applicants to cease supply, without any opportunity for independent review of that decision,” said ACCC Chairman Rod Sims.
While we agree that reducing illicit tobacco sales is in the public interest, we are not satisfied these proposed arrangements would reduce trade in illicit tobacco sufficiently to offset the likely detriments,” Sims said. A final ACCC decision is expected in February, 2017, the ACCC said.