PHILIP MORRIS SUES CHILETABACOS

Source from:  Santiago Times 07/29/2009

Philip Morris, the world's largest tobacco company, is suing Chiletabacos, the Chilean affiliate of the multinational British American Tobacco (BAT), three years after the Supreme Court ruled that BAT practiced unfair market strategies, allowing the company to have a large monopoly of Chile's tobacco sales. Philip Morris, which represents 4 percent of the Chilean tobacco market, brought its charges against BAT on July 14, demanding US$137.5 million in compensation. In 2006 the Supreme Court ruled against Chiletabacos, which represents 96 percent of the market, for signing exclusivity contracts with distributors to control competition. Prior to that, Chile's Free Market Defense Court (TDLC) sanctioned Chiletabacos in 2005 under the same charges. Philip Morris has assigned Carey y Cia., the largest law firm in Chile, to its case, while Chiletabacos has hired lawyers from Claro y Cia. Philip Morris markets locally the tobacco blends Marlboro and L&M, competing with Belmont and Derby, Chiletobaco's top selling brands. Enditem