Expert opinion in abuse of dominance complaint

Genesis was commissioned to provide expert economic evidence relating to a complaint brought by the Fair Competition Commission of Tanzania (FCC) against the Tanzania Cigarette Company (TCC).

In the complaint, it was alleged that TCC engaged in an abuse of dominance in relation to a new entrant, and that it then illegally acquired the allegedly successful entrant.

The project team focused considerable effort on a careful construction of the facts through the innovative use of both public and private sources, including tax receipts.

On this basis, it was able to demonstrate that, far from being a successful new entrant, the target company was failing and that it had willingly engaged in a sale of equipment to stem further losses.

Furthermore, the purchase of this equipment by TCC was necessary to alleviate its own capacity constraints. Within this context, the team found that the merger was unlikely to have been anti-competitive.

With regard to the alleged abuse, Genesis carefully examined the extent of the evidence to determine if any possible effect could be causally related to the alleged conduct.

Ultimately, a settlement was reached between TCC and the FCC.