The Romanian Competition Council has fined Philip Morris Trading, Interbrands Orbico, and Mediaposte Hit Mail with fines totaling RON 135.2 million (EUR 26.6 million) for participating in anti-competitive agreements on the heated tobacco products market. The decision is enforceable.

Following an investigation, the competition authority said it found that there were agreements between Philip Morris Trading and each of the distributors Interbrands Orbico and Mediaposte Hit Mail aimed at fixing resale prices for Philip Morris' IQOS heated tobacco products.

Interbrands Orbico, which received a RON 52 million fine, admitted to breaching Romania's Competition Law and, as a result, benefited from a reduction in its fine, according to Profit.ro. The largest part of the total fine was received by Philip Morris Trading (RON 79 million).

Philip Morris Trading rejected any wrongdoing, stating that the company's commercial activities "comply with the legislation in force and are designed to benefit adult consumers in Romania."

"We express our firm disagreement with the Competition Council's conclusions and the interpretation given to the applicable legal framework. We are currently analyzing all available avenues to challenge this decision," according to a company press release.

"We respect the right of our partners to take the measures they deem necessary to resolve this situation and focus on their business," Philip Morris Trading also said.

According to the Competition Council, they set the prices at which IQOS products were to be resold to customers, as well as the discounts applied in the promotions carried out by Interbrands Orbico in physical outlets and by Mediaposte Hit Mail SA on the iqos.ro website. Also, the distributors' promotional campaigns could only be carried out with the supplier's approval, both in the IQOS physical outlets and on the iqos.ro website, the Council showed.

"Each company must independently establish its commercial policy, not through agreements with partners. By setting resale prices and establishing the level of discounts, the freedom of commercial partners to set their own prices has been restricted, which ultimately affects consumers," explained Bogdan Chirițoiu, president of the Competition Council.

iulian@romania-insider.com

(Photo source: Nikkimeel/Dreamstime.com)