FCCPC Fines British American Tobacco $110 Million for Numerous Violations

The Federal Competition and Consumer Protection Commission (FCCPC) has filed a lawsuit against British American Tobacco (BAT) in Nigeria and companies affiliated with it for $110 million for numerous violations of the FCCPC Act, the National Tobacco Control Act, and other legal instruments.

The commission released a statement on X, formerly Twitter, clarifying that the fine was determined through mutual engagement with BAT under the FCCPC’s Cooperation/Assistance Rules and Procedure (CARP) 2021. The framework is believed to offer potential benefits like reduced penalties and waivers of specific regulations for companies willing to cooperate.

The Statement Reads,

• In the resolution of an investigation over a broad range of anticompetitive conduct, including abuse of dominance, seeking to frustrate competitors, penalizing retailers for providing equal platforms for product display of competitors, product introduction in violation of regulations, among others, & infringement of public health control regulations British American Tobacco & FCCPC entered into a consent order including a penalty of $110 Million during 2023.

According to the report, British American Tobacco will also be subject to a 24-month compliance and monitoring program overseen by the FCCPC to ensure adherence to appropriate business practices. Also, they must undertake a mandatory public health and tobacco control advocacy campaign compliant with relevant laws and regulations.

The BAT parties will also provide written assurances to the Commission per Section 153 of the FCCPA. In exchange for fulfilling their obligations under the Consent Order, the Commission has withdrawn pending criminal charges against BAT Nigeria and one employee for obstructing the execution of a search warrant and an initial lack of cooperation during the investigation.

The FCCPC’s investigation, initiated on August 28, 2020, was prompted by credible information and intelligence warranting further inquiry. After obtaining a search warrant from the Federal High Court, the Commission executed simultaneous searches at multiple BAT locations and a service provider’s location on January 25, 2021.

Subsequent analysis of seized electronic communications and other data, along with additional investigation and evidence gathering, established and supported multiple violations of the FCCPA and other relevant laws, BusinessDay reported.

The statement read, 

• The commencement of the investigation was based on the Commission’s satisfaction that a series of credible pieces of information and intelligence were actionable enough for broader and deeper inquiry.

• Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools, the court issued an Order and Warrant of Search and Seizure.

• On January 25, 2021, the Commission executed simultaneous and contemporaneous searches and seizures at multiple BAT parties' locations and a service provider's location.

• The Commission gathered, received, and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search and other evidence procured during and after the search from other legitimate sources.

• Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments.

The FCCPC is committed to upholding its mandate of promoting fair markets and protecting consumer interests. This outcome demonstrates the Commission’s unwavering resolve to enforce the law and hold businesses accountable, even when complex and lengthy investigations are necessary.