Nigeria’s competition commission has ordered British American Tobacco (BAT) to pay a USD 110 million fine citing allegations of market dominance abuse and infringement of public health regulations, reports Reuters.
The Federal Competition & Consumer Protection Commission (FCCPC) also accused BAT of punishing vendors for giving the company’s competitors an equal selling platform. The USD 110 million fine is the biggest the Nigerian competition commission has ever issued. FCCPC Chief Executive Babatunde Irukera explained that the fine is a “consent order”, equivalent to a plea bargain and not subject to appeal, reports Reuters.
“In resolution of an investigation over a broad range of anticompetitive conduct including abuse of dominance, seeking to frustrate competitors…and infringement of public health control regulations, British American Tobacco and FCCPC entered into a consent order including a penalty of USD 110 million,” the FCCPC said on social media platform X.
The FCCPC began its investigation into BAT in 2020 and will now monitor the company for another 24 months to ensure appropriate behaviour and business practice consistent with prevailing competition laws and tobacco control efforts, reports Reuters.
“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.
BAT’s 2023 half-year annual report confirmed the FCCPC investigation and penalty.