British American Tobacco-owned Prylucky Tobacco Company won its appeal against Ukraine’s Antimonopoly Committee over a UAH450 million (US$16.1 million) fine. According to a press release, the Northern Commercial Court of Appeal examined the evidence and facts of the case and found the legal position of the court of the first instance erroneous and the qualifications of the Antimonopoly Committee groundless.
In October 2019 the committee imposed a fine of UAH6.5 billion (US$230 million) totally for anti-competitive concerted actions on cigarette manufacturers and distributors: namely UAH3.4 billion on Tedis Ukraine; UAH370 million on Philip Morris Sales and Distribution; UAH810 million on Philip Morris Ukraine; UAH430 million on PJSC JT International Ukraine; UAH490 million on PJSC JT International Company Ukraine; UAH170 million on Imperial Tobacco Production Ukraine; UAH290 million on Imperial Tobacco Ukraine; UAH80 million on British American Tobacco Sales and Marketing Ukraine LLC; and UAH450 million on PJSC A/T B.A.T. – Pryluky Tobacco Company. The committee also ordered these companies to stop violations.
On January 26 BAT Ukraine lost an appeal over the fine paid by the company. According to the company, the fine imposed by the committee was paid to avoid the accrual of penalties, although the manufacturer did not admit to any wrongdoing.
Shortly thereafter, on February 2, Tedis Ukraine won its appeal against the committee and the invalidation of its fine, which the company had not yet paid. The Supreme Court said that it upheld the ruling due to the impossibility of bringing any person to justice on the basis of decisions of the committee in other cases, without obligatory proof of guilt in each individual case and taking into account the erroneous legal qualification of actions of Tedis Ukraine.