Large fines on the tobacco market: Three companies set the prices at which IQOS products were to be resold to customers, the Competition Council accuses
Philip Morris International launches the new IQOS ILUMA in Romania, Photo: Philip Morris Romania
The Competition Council announced on Wednesday that it has sanctioned the companies Philip Morris Trading, Interbrands Orbico and Mediaposte Hit Mail with fines totaling 135.2 million lei (26.6 million euros) for participating in anti-competitive agreements on the heated tobacco products market.
The fines were applied as follows:
- Philip Morris Trading SRL: 78,688,820 lei
- Interbrands Orbico SRL: 52,118,418 lei
- Mediaposte Hit Mail SA: 4,451,897 lei.
Following an investigation, the competition authority found that there were agreements between Philip Morris Trading SRL and each of the distributors Interbrands Orbico SRL and Mediaposte Hit Mail SA aimed at fixing the resale prices for Philip Morris' IQOS heated tobacco products.
Basically, says the authority, they set the prices at which IQOS products were to be resold to customers, as well as the discounts applied within the promotions run by Interbrands Orbico SRL in the IQOS islands (stands) and by Mediaposte Hit Mail SA on the iqos.ro website. Also, the distributors' promotional campaigns could only be run with the supplier's approval, both in the IQOS islands and on the iqos.ro website.
“Each company must establish its commercial policy independently, not through agreements with partners. By fixing resale prices and setting the level of discounts, the freedom of commercial partners to set their own prices was restricted, which, in the end, affects consumers,” said Bogdan Chirițoiu, president of the Competition Council.
Interbrands Orbico SRL admitted the violation of the Competition Law and, as a result, benefited from a reduction of the fine.
We remind you that the competition law prohibits any agreements between companies and concerted practices that prevent, restrict or distort competition on the Romanian market, especially those that establish, directly or indirectly, purchase or sale prices or any other trading conditions.
The decisions of the Competition Council are enforceable, and the fines applied represent revenues to the state budget. The National Fiscal Administration Agency (ANAF) implements the sanctioning decision of the competition authority and executes the fines.
