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Turkey Fines Nestlé for Competition Law Breach, Exonerates Danone

Turkey 08.01.2024
Source: The DairyNews
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In a recent development, Turkey's antitrust regulator has imposed a fine on Nestlé for violating national competition regulations, while Danone emerges unscathed from any penalties.
Turkey Fines Nestlé for Competition Law Breach, Exonerates Danone
Source: freepik.com
The confectionery giant, Nestlé, known for its Aero chocolate, has been fined the equivalent of $8.7 million for breaching Turkey's law on the Protection of Competition. The regulator, Rekabet Kurumu, found Nestlé in violation of Article 4, which prohibits decisions likely to affect competition prevention, distortion, or restriction in a specific market.

Nestlé was specifically accused of determining resale prices for its distributors and imposing regional and customer restrictions on them. The imposed fine for Nestlé amounts to TL260 million ($8.7 million), with an oral defense hearing scheduled for February 6.

In response to the decision, Nestlé stated, "We are aware of the [Turkish Competition Authority]'s decision and will review the detailed report once available and defend our case."

Nestlé, along with Danone and four other Turkish food companies, had been under investigation for alleged competition law violations related to sharing pricing information. However, Danone has been found not to have violated any national competition regulations.

On the other hand, two other companies, Eti Gida and Horizon Fast Consumption, were found to have breached competition laws similar to Nestlé, resulting in fines of TL36 million and TL55 million, respectively.

Additionally, Turkey's antitrust regulator plans to charge Aksaray Unlu Mamulleri Food Industry and Trade TL2.9 million for breaking multiple competition regulation agreements related to the Untad tortilla brand. Furthermore, Binboğa Bal, a Turkish honey producer, is set to be fined TL3 million for determining buyer resale prices.
Rebecca Marquez
Rebecca Marquez
Director of Custom Research at PMMI
Private-label products, sometimes known as private brands or store brands, have enjoyed steady growth since even before the COVID-19 pandemic. And dollar sales continue to grow. In 2023, total dollar sales rose 6%, while units sold grew 0.9% compared to the prior year. Often presented as the lower-cost option, high inflation has helped the private-label market, which is valued at more than $217 billion, according to a report from Chicago-based market research firm Circana.
Keith Woodford
Keith Woodford
principal consultant at Agri food Systems Ltd.
In recent years, the level of A2 beta-casein in New Zealand milk has been increasing rapidly and the level of A1 beta-casein has been correspondingly decreasing.