ROME -- Italy's antitrust watchdog fined cigarette giant Philip Morris International $53 million on Friday for pricing practices over an eight-year period that it said violated Italy's competition rules. The tobacco company said it would appeal.

The agency also imposed a fine of $21 million on Italy's state-owned tobacco company, Ente Tabacchi Italiani.

According to the antitrust agency, five units of Philip Morris International, maker of Marlboro and a division of U.S.-based Altria Group Inc., and the Italian tobacco company agreed to joint and identical price increases between 1993 and 2001.

Philip Morris International said it would appeal the decision.

Division vice president Mark Friedman said price increases "have been carried out in compliance with requests made by the Italian state," as part of the government fiscal policy.