A consortium of tobacco-product distributors has filed a complaint with the Anti-Monopoly Office about Philip Morris CR's distribution practice, the Czech Press Agency reported yesterday. The consortium claims that PM CR, with a market share of 80%, abuses its dominant market position as it sells its products to distributors at higher wholesale prices than via its own distribution network (PM CR sells approx. 30% of its production via its own distribution network). The consortium is therefore calling for the financial separation of PM CR's production and distribution practices. PM CR said that it applies the same policy/prices to all customers.
While the AMO may make some minor pro-competitive requirements on PM CR in this regard (which we see as unlikely), we would not expect such to significantly affect PM CR's performance.
Jan Hájek