13:43 11.10.2019

Tedis Ukraine, tobacco manufacturers to challenge competition agency's fine of UAH 6.5 bln

3 min read
Tedis Ukraine, tobacco manufacturers to challenge competition agency's fine of UAH 6.5 bln

Tedis Ukraine distribution company and tobacco manufacturers will challenge the decision of the Antimonopoly Committee of Ukraine about the fine of UAH 6.5 billion for anticompetitive actions.

"On October 10, 2019, the Antimonopoly Committee decided to find the company guilty of violating antitrust laws. Tedis Ukraine denies allegations of the Antimonopoly Committee of Ukraine about violation of laws on the protection of economic competition in the form of anticompetitive concerted actions," the company's press service said.

Tedis Ukraine believes that the decision of the Antimonopoly Committee of Ukraine was taken in violation of the requirements of the current legislation, "without the available evidence and on trumped-up charges."

"The company worked and continues working only in line with legislation. Tedis Ukraine does not agree with the decision of the Antimonopoly Committee of Ukraine and will appeal it in accordance with the current legislation," the company said.

In turn, JTI Ukraine manufacturer said that they were expecting a decision from the Antimonopoly Committee of Ukraine and expressed their readiness to defend their position in court.

"We do not agree with the decision and will challenge it in court. JTI Ukraine always conducts and will conduct its activities in full compliance with the laws of Ukraine," the company's press service said.

British American Tobacco also sees reasonable grounds for appealing the decision of the Antimonopoly Committee of Ukraine.

"We are disappointed with the decision made by the Antimonopoly Committee of Ukraine. 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. Therefore, B.A.T. Ukraine does not agree with this decision and believes that there are reasonable grounds for appealing against it. We will consider the details of the decision and plan to challenge the decision within the time and method stipulated by the current legislation of Ukraine," the company said.

Imperial Tobacco in Ukraine also does not agree with the decision of the Antimonopoly Committee of Ukraine and considers it contrary to common sense and the legislation of the country. The company said that during 2008-2010, the Antimonopoly Committee of Ukraine granted permission for the concentration by Tedis Ukraine LLC and allowed the acquisition of key distribution companies that existed on the market at that time. According to Imperial Tobacco, these concentration permits were a clear message for the full compliance of the creation process of the main distributor in the market with the antitrust laws of Ukraine.

"In fact, the Antimonopoly Committee of Ukraine personally created a situation in which it later accused international manufacturing companies, including Imperial Tobacco in Ukraine," the company said.

"We will appeal with the courts filing a lawsuit to defend ourselves and cancel the decision of the Antimonopoly Committee of Ukraine as such, which was adopted without any legal grounds and does not correspond to the real situation on the market," the Imperial Tobacco said.

In turn, Philip Morris Ukraine is still awaiting the text of the decision of the Antimonopoly Committee of Ukraine. However, the company is convinced that the committee's charges are groundless.

"Philip Morris Ukraine works only in line with the law. We are confident in our rightness and will defend our interests and business reputation in the legal ways provided by the law," the press service of the tobacco company said.

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