Food and Beverage Business

Turkey Imposes Fine on Nestlé for Violating Competition Laws, Danone Escapes Unscathed

Turkey Imposes Fine on Nestlé for Violating Competition Laws, Danone Escapes Unscathed Danone, Nestlé Food and Beverage Business

The food and beverage industry trends have seen Nestlé receiving a fine from Turkey’s antitrust regulator for breaching competition regulations, while Danone remains untouched. The Aero chocolate maker violated Turkey’s law on the Protection of Competition, according to the country’s competition watchdog.

Nestlé had gone against Article 4 of the legislation, which prohibits any decision that could impact competition in the market for goods or services. It violated the law by “determining the resale prices of its distributors and imposing regional and customer restrictions on its distributors”. Consequently, Nestlé now faces a fine of TI260m ($8.7m) for its actions and is due to hold an oral defense hearing on 6 February.

The investigation also found that dairy giant Danone and four other Turkish food companies – Eti Gida, and Horizon Fast Consumption – had violated the competition laws on sharing pricing information, with Nestlé facing the brunt of the penalty.

Furthermore, Rekabet Kurumu announced that Danone had not violated any national competition regulations whereas Eti and Horizon Fast Consumption were fined Tl36m and Tl55m, respectively, for similar breaches to Nestlé. Additionally, Untad tortilla brand owner Aksaray Unlu Mamulleri Food Industry and Trade will face a fine of TI2.9m, while Turkish honey producer Binboğa Bal will be fined TI3m for determining buyer resale prices.

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