4 months Ago
The ruling affects British American Tobacco (BAT), JTI, Philip Morris Benelux, and Van Nelle Tabak. These companies were found guilty of illegally sharing information about future cigarette prices to adjust their pricing strategies accordingly.
Years-Long Coordination and Market Manipulation
According to the court, all four companies engaged in indirect information exchange over several years. This allowed them to align pricing decisions, which the court described as a "concerted practice aimed at restricting competition."
The total fine, issued by the ACM, included €31 million for BAT, the largest amount among the four. In 2020, all the companies filed objections to the fine, and three tried to prevent publication of the ACM's findings. That attempt was unsuccessful.
One Continuous Violation of Competition Law
The court concluded that the companies' actions formed a single, continuous violation of competition law. Sharing non-public information about future pricing undermines market fairness and is strictly prohibited under Dutch and EU competition rules.
The court's decision sends a clear message that such practices, even when done indirectly, are not acceptable and will be met with strict penalties.
