Romanian competition authority fines tobacco firms €26.6 million

Business Forum
Romania's Competition Council has fined three companies a total of RON 135.2 million (€26.6 million) for anti-competitive agreements in the heated tobacco products market.

Philip Morris Trading received the largest fine of RON 78.7 million (€15.46 million), followed by Interbrands Orbico with RON 52.1 million (€10.23 million), and Mediaposte Hit Mail with RON 4.5 million (€0.88 million). The investigation found that Philip Morris Trading had agreements with both distributors that involved fixing resale prices for IQOS heated tobacco products.

The companies set prices at which IQOS products would be resold to customers, as well as discounts applied during promotions run by Interbrands Orbico in IQOS stands and by Mediaposte Hit Mail on the iqos.ro website. Promotional campaigns by distributors could only be conducted with supplier approval, both in IQOS stands and on the website.

"Each company must establish its commercial policy independently, not through agreements with partners. By fixing resale prices and setting discount levels, the freedom of commercial partners to set their own prices was restricted, which ultimately affects consumers," said Bogdan Chirițoiu, President of the Competition Council.

Interbrands Orbico acknowledged violating competition law and received a reduced fine as a result. The Competition Council's decisions are enforceable, and fines represent revenue for the state budget, with collection handled by Romania's National Tax Administration Agency (ANAF).

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