Nigeria (Commonwealth) _The Federal Government announced that British American Tobacco, Nigeria Limited and its affiliated entities will pay a $110 million fine for violations.
Following the Commission’s lengthy infringement against BAT and its connected companies, the Federal Competition and Consumer Protection Commission confirmed this in a statement released on its X website on Wednesday.
To allow BAT Parties to complete their obligations under the Consent Order, the Commission dropped outstanding criminal proceedings against BATN and at least one employee for obstructing an investigation. On August 28, 2020, the Commission opened an active investigation against British American Tobacco Nigeria Limited and other connected businesses (BAT Parties).
The FCCPC secured a ruling and Warrant from the Federal High Court after obtaining reliable details on BAT’s infringement. The Commission executed concurrent and contemporaneous searches and seizures on January 25, 2021, at the physical locations of multiple BAT Parties and a service provider.
The Commission collected extensive evidence from forensic examination of electronic communications and other data or information seized during the search, as well as information obtained from other lawful sources before and following the search.
After thorough review of the record, BAT Parties’ additional articulation, representations, and correspondence; totality of evidence obtained, breaches set under law, BAT Parties’ entry into, and assistance and cooperation under the Commission’s CAF; the Commission and BAT Parties’ shared carrying out of a Consent Order and Notice with both parties confirming:
Under and in line with Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020, and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigation Cooperation Rules and Procedures, 2021, the BAT Parties pay a fine of $110,000,000 (One Hundred and Ten Million Dollars);
For a period of 24 months, BAT Parties will be liable for compliance and monitoring pursuant to the supervision of the Commission to guarantee suitable behavioral and business practices modification to be more compatible with compliance with prevailing competition laws/regulations and tobacco control activities.
It went on to say that mandated public health and tobacco control advocacy in a way that is compatible with tobacco control legislation and regulations and acceptable to the Commission as an offset is a must.
It also stated that BAT Parties must engage in obligatory public health and tobacco control campaigns in a manner that is in line with tobacco control legislation and regulations and acceptable to the Commission as a factor of mitigation in proving the practice of weakening and circumventing national tobacco control policies and regulations; and that BAT Parties must submit Written Promises to the Commission as required under Section 153 of the FCCPA.
The commission abandoned pending criminal charges against BATN and at least one employee for obstruction of the Commission by striving to thwart the carrying out of the search warrant and its initial lack of cooperation/compliance with steps in the probe in return for BAT Parties achieving their duties under the Consent Order.
According to the FCCPC, the investigation, which included proffers, hearings, transcripts of sworn testimony, and ongoing evidence analysis, established and substantiated several breaches of the FCCPA and other laws.
It emphasized that, during the inquiry and in furtherance of mutual agreements between the Commission and the BAT Parties, the BAT Parties sought, and the Commission acknowledged, cooperation according to the Commission’s Cooperation/Assistance Rules & Procedure, 2021.
It was clarified that this gives benefits such as possibly decreased monetary penalties; waiver of the Commission’s Administrative Penalties Regulations 2020; and prosecutorial discretion, namely Rules 5.1 and 5.3 (subject to conformity with Rules 3 and 5.4).
