Nigeria’s competition commission, the Federal Competition & Consumer Protection Commission (FCCPC), has imposed a historic $110 million fine on British American Tobacco (BAT) for alleged market dominance abuse and violation of public health regulations. This penalty, the largest ever by the Nigerian competition commission, follows accusations that BAT also penalized retailers for providing platforms to its competitors. BAT confirmed the investigation and penalty in its half-year annual report.
The FCCPC considers the fine a “consent order,” equivalent to a plea bargain, and not subject to appeal. The watchdog initiated the investigation in 2020, leading to multiple violations of competition laws.In a groundbreaking move, the Federal Competition & Consumer Protection Commission (FCCPC) in Nigeria has issued a monumental $110 million fine against British American Tobacco (BAT).
This penalty comes in the wake of allegations regarding BAT’s abuse of market dominance and non-compliance with public health regulations.BAT, renowned for brands like Lucky Strike and Dunhill cigarettes, faced accusations of penalizing retailers who provided equal platforms for the products of its competitors.
The severity of the fine reflects the gravity of these allegations, making it the highest ever imposed by the Nigerian competition commission.BAT’s spokesperson, Aaron Shardey, confirmed the FCCPC’s investigation and subsequent penalty in the company’s half-year annual report. The FCCPC Chief Executive clarified that this fine is classified as a “consent order,” akin to a plea bargain, making it immune to appeal.
The FCCPC initiated its investigation into BAT and affiliated companies back in 2020. The commission obtained a federal court order to conduct searches at multiple BAT sites and those of its service providers to gather evidence for a forensic analysis. Subsequent investigations and analyses revealed multiple violations of competition laws.
As part of the FCCPC’s regulatory measures, BAT will be closely monitored for the next 24 months to ensure compliance with appropriate behavior and business practices aligned with prevailing competition laws and tobacco control efforts. This landmark decision underscores Nigeria’s commitment to maintaining fair competition and upholding public health standards in the tobacco industry.
