Fine challenged

The Tedis distribution company and several tobacco manufacturers will challenge a decision by Ukraine’s Anti-Monopoly Committee to fine them UAH6.5 billion ($263.4 million) for anti-competitive actions.

The committee announced the penalty on Oct. 10, saying the industry colluded to keep new businesses from entering the market.

The accused tobacco companies are Philip Morris, Japan Tobacco International, Imperial Tobacco and British American Tobacco (BAT).

“We are disappointed with the decision made by the Anti-Monopoly Committee of Ukraine,” a BAT representative said. “British American Tobacco has been working in Ukraine for more than 25 years, and throughout this time, it has acted in full compliance with the laws of Ukraine.”

Imperial Tobacco said the competition watchdog helped bring about the current situation. The company pointed out that during 2008–2010, the Anti-Monopoly Committee permitted Tedis Ukraine to acquire several key distribution companies.