Competition board fines Frito-Lay 1.3 billion liras

ANKARA

Türkiye’s competition authority has fined American food company Frito-Lay 1.3 billion Turkish Liras ($35.9 million) for violating the country’s competition regulation.

Publishing a statement on Feb. 15 after conducting an investigation into the claims, the competition board ruled that Frito-Lay Gıda attempted to gain exclusivity by making it difficult for rivals to operate in the packaged chips market in small shops, markets and kiosks across the country.

Placing Frito-Lay under some restrictions, the board ruled that 30 percent of Frito-Lay Gıda stands will be set aside exclusively for competitor products in sales locations without any stands with competition brands.

According to the ruling, a divider will separate the designated area, and each basket within it will bear a legible label that reads, "This section is reserved for competitor chips products."

This area designated for competing items will remain empty and will not be stocked with Frito-Lay products if, for any reason, competing products are not available at the point of sale or are out of stock, the statement said.

The board also ruled that the brand will not provide any guidance to the sales points that focus on the accessibility and prominence of rival items. In addition, Frito-Lay will be permitted to set up a single chip stand at each sales location.

With the ruling, the competition authority seeks to expand customer choices in the packaged chips industry and allow Frito Lay's rivals to enter sales points such as kiosks, grocery stores and small markets.