JTI Accuses Egypt’s Largest Tobacco Producer of Market Monopoly

Japan Tobacco International has accused an Egyptian tobacco producer of monopolizing the market and has filed a complaint with Egypt’s competition authority.

According to a Shafaqna report, Japan Tobacco International (JTI) has submitted a complaint to the Egyptian Competition Authority (ECA), alleging that Eastern Company, Egypt’s largest tobacco producer, holds a monopolistic position in the market. 

A senior source said the complaint involves JTI’s Gold Coast brand, which competes with the low-priced cigarettes offered by Eastern Company in the Egyptian market. 

The source added that JTI previously produced the brand at its factory in Turkey before importing and selling it in Egypt. However, recent tax amendments imposed VAT on low-priced cigarettes, preventing JTI from importing the brand and limiting its sales to locally produced products. 

Over the past year, Egypt’s cigarette market has seen several controversial developments. These include the issuance of a new license after Eastern Company had remained the sole state-owned producer for decades, as well as the sale of a 30% stake in Eastern Company to Global Investment Holding for $625 million.