TURKEY'S HEAVY-HITTER IN THE CROSSHAIRS
Coca-Cola under investigation by Turkish authorities due to suspected breach of competition rules
Turkey's Competition Board has initiated a hot investigation into Coca-Cola Içecek - the powerhouse behind the distribution and sale of Coca-Cola beverages in turkey's bustling market. The board's interest is sparked by allegations of anticompetitive practices. Let's dig a bit deeper.
The investigation's roots can be traced back to a preliminary review by the authority, revealing potential signs of anticompetitive actions by Coca-Cola. These could shyly include measures that restrict or clog the path for rival beverage brands at retail outlets cozying up to Coca-Cola's products.
The investigation's wide scope covers a diverse portfolio of brands under Coca-Cola Içecek's umbrella in Turkey, from the evergreen Coca-Cola to crowd-favorites like Fanta, Sprite, Schweppes, Cappy, Fuse Tea, Monster, Burn, Powerade, Damla, and more.
Moving forward, investigators will also scrutinize whether Coca-Cola adhered to the commitments it pledged to the competition board in 2021.
This isn't a competition authority's first rodeo. Earlier this year, they also took American food company Frito-Lay under their magnifying glass over similar allegations. In the end, the company paid a hefty fine of 1.3 billion Turkish Liras ($33.1 million), and the board mandated that 30% of Frito-Lay's stands would be reserved exclusively for competitor products in sales locations devoid of competitor brands.
Stock markets didn't seem too enthusiastic about the news, with Coca-Cola Içecek experiencing a 2.38% decline following the investigation announcement[1]. As for Coca-Cola, they've kept their lips sealed over the issue for now.
It's essential to remember that no findings or penalties have been announced with the investigation still in its infancy. Stay tuned for more updates in this nail-biting drama.
[1] - Reuters[2] - Anadolu Agency[3] - tradingeconomics.com[4] - BBC
The Competition Board's investigation into Coca-Cola Içecek is not limited to the finance and business aspects of their operations, but also includes examining anticompetitive practices within the industry. If found guilty, Coca-Cola Içecek might face similar penalties as American food company Frito-Lay, which recently paid a hefty fine and was mandated to reserve a portion of their sales locations for competitor brands.
