BAT to pay a US$110 million fine for violating antitrust law

According to The Leadership, British American Tobacco has reached a settlement over a US$110 million fine related to abuse of market dominance in Nigeria.

In a statement issued on December 30, Odiri Erewa-Meggison, External Affairs Director for British American Tobacco West and Central Africa, said the fine relates to an investigation previously disclosed in the company’s 2022 annual report and updated in its half-year report as of June 30, 2023.

The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria launched its investigation into BAT in 2020 and obtained a federal court search warrant to inspect multiple BAT premises as well as the premises of service providers in order to secure evidence for forensic analysis.

According to the FCCPC, BAT’s violations included penalizing retailers for giving competing products equal shelf space and sales opportunities.

The competition regulator will monitor BAT over the next 24 months to ensure that its conduct and business practices comply with current competition law and tobacco control efforts.

This fine is the largest ever imposed by Nigeria’s competition commission to date, and it is not subject to appeal.

Erewa-Meggison further acknowledged the monitoring and awareness campaign activities stipulated in the settlement agreement, confirming that BAT Nigeria has fully cooperated with the service providers appointed by the FCCPC.