Commission probes Spar role in cigarette war
Supermarket group Spar is being investigated by the Competition Commission after banning SA-produced cigarettes, whose manufacturers are alleged to be tax dodgers, from its shops, according to a Business Times report.
The withdrawal is the latest battle in a war being waged between multinational cigarette manufacturers and SA producers, which is being fought through opposing industry groups the Tobacco Institute of Southern Africa (Tisa) and the Fair-Trade Independent Tobacco Association (Fita).
Tisa represents global tobacco giants like British American Tobacco. Fita's members include SA manufacturers Carnilinx, Gold Leaf Tobacco Corp and Amalgamated Tobacco Manufacturing.
Spokesperson Sipho Ngwenya confirmed the commission was investigating a complaint by Fita against Spar.
He said the probe was in its preliminary stage. ‘The preliminary investigation will determine whether there is an anti-competitive case to be investigated.’ Spar had submitted a response, ‘which we are considering’.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
