The Competition Board imposed a penalty of 1.3 billion lira on chip producer Frito Lay for impeding the activities of rival companies.

The Competition Board completed its investigation into Frito Lay Gıda Sanayi ve Ticaret AŞ, which operates in the chip and confectionery market in Turkey.

The investigation was launched to determine whether Frito Lay violated the Law on Protection of Competition by impeding the activities, sales, and market exclusion of its competitors in the packaged chip sector.

REASONS FOR THE PENALTY

It was found that the company engaged in practices to hinder the sales of its competitors at sales points such as grocery stores, markets, and kiosks where packaged chips were purchased.

As a result of the investigation, an administrative fine of approximately 1.3 billion lira was imposed on the company. The decision was noted to be significant for sales points under 200 square meters. Moreover, certain obligations were imposed on Frito Lay, a prominent player in the chip and confectionery market.

SPACE ALLOCATED FOR RIVAL COMPANIES

According to the decision, in sales points where there are no rival stands, Frito Lay will allocate 30% of the vertical and visible space of its stands for rival products.

The allocated section will be divided by separators, with each section bearing a readable label stating, ‘This section is reserved for rival chip products.’ In cases where rival products are not available or out of stock for any reason, the allocated section for rival products will remain empty and not be filled with Frito Lay products.

ONLY ONE STAND PERMITTED

There will be no guidance aiming to affect the visibility and availability of rival products in sales points. Frito Lay will be allowed to place a maximum of one chip stand in sales points.

No financial benefits will be provided to retail sales points aside from standard purchasing processes. The entrance of rival products into sales points will increase the options available to consumers.