The Antimonopoly Committee of Ukraine of October 10, 2019 stated that he imposed on four manufacturers and one distributor of cigarettes fine for a total amount of 6.5 billion UAH
The American chamber of Commerce in Ukraine said that concerned about the neglect of legal rights of companies in judicial review of decisions of the Antimonopoly Committee fines, and believes that in this way violated the rights of international investors. This is referred to in a statement on the organization’s website.
“The chamber is concerned about the attempt to assign responsibility for the structural changes of the market distribution of tobacco products in 2011-2012 for international companies: “V. A. T. Pryluky”, “JT international company Ukraine”, “Imperial tobacco Ukraine” and “Philip Morris Ukraine” – the manufacturers of tobacco products. Such changes occurred with the consent of the Antimonopoly Committee of Ukraine, which provided a range of solutions (decisions №№701-p 702-p, 703-p 704-p of 23 November 2011) on the consolidation of the market without consultation with manufacturers and other stakeholders,” – said the American chamber of Commerce.
The recovery of a fine and seizure of property at the time of the appeal against the decision of the AMCU in the court of first instance violates the law of Ukraine “On protection of economic competition”, noted in the organization.
“[This] could lead to the fall of government revenue and creation of prerequisites for the unprecedented growth of illegal import of tobacco products. Encourage the responsible public authorities to fair and equitable treatment of international investors in Ukraine and due legal process, respect for the principles of independence and impartiality in consideration of cases on appeal of decision No. 697-R in the courts,” concluded the authors.
The Antimonopoly Committee of Ukraine of October 10, 2019 stated that he imposed on four manufacturers and one distributor – Tedis Ukraine – cigarettes fines totaling 6.5 billion for anticompetitive concerted actions. In the AMC said that the large companies – manufacturers of cigarettes have agreed to work with only one distributor – Tedis Ukraine, so they let the appearance on the market of new players. Manufacturers challenged this decision in court.
21 Jun 2020 Antimonopoly Committee of Ukraine reported that the Economic court of Kiev dismissed the claim of companies “Imperial tobacco Ukraine” and “Imperial tobacco Production Ukraine” for the ACU to recognize partially invalid the penalty totaling almost 460 million UAH. Both companies are preparing to file an appeal against the decision of the court of first instance.
On the website of the Antimonopoly Committee of Ukraine published a Declaration on payment of a fine by “Imperial tobacco”. In a press-service of tobacco companies said that the information of the AMC regarding motivation of the company regarding the payment of the fine is filed correctly, it is not true and is “known to be false for the purpose of misleading the public about the activities of the company”, and the AMC so shows in his actions “unprofessional and incompetent”.
In February the General Director of “Imperial tobacco” Rastislav Chernak said he believes are unfounded claims against the company and am confident that the courts will protect her rights. The Convenor reported that the Antimonopoly Committee in 2010 has created a situation where now trying to impose “Imperial tobacco”: given the multiple resolutions in favor of the company “Megapolis Ukraine”, which was later renamed the Tedis Ukraine, as a result, the firm bought a part of the larger distributors, and another part left the market.
He added that the Antimonopoly Committee is now trying to shift responsibility for their actions on the producer, accusing them of collusion with other companies.