The Competition Board has imposed a 1.3 billion lira fine on chip manufacturer Frito Lay for hindering the activities of rival companies.

The Competition Board completed its investigation into Frito Lay Gıda Sanayi ve Ticaret AŞ, operating in the potato chips and confectionery market in Turkey.

The investigation was launched to determine whether Frito Lay violated the Law on the Protection of Competition by obstructing the activities of competitors in the packaged chips sector, preventing their sales, and excluding them from the market.

REASON FOR THE FINE

It was found that the company engaged in practices aimed at obstructing the sales of competitors at sales points such as grocery stores, markets, and kiosks where packaged chips are purchased.

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

SPACE RESERVED FOR COMPETITORS

According to the decision, at sales points where there are no stands for competitors, 30% of the vertical and visible area of Frito Lay stands will be reserved for competitor products.

The reserved area will be divided by separators, and each basket in this area will have a readable label stating, ‘This section is reserved for rival chip products.’ If for any reason rival products are not available or sold at the sales point, this reserved area will be left empty and not filled with Frito Lay products.

ONLY ONE STAND ALLOWED

No directing towards the presence or visibility of rival products will be made at sales points. Frito Lay will be allowed to place a maximum of one chip stand at sales points. Apart from standard purchasing processes, no financial benefits will be provided to retail sales points. The presence of rival products at sales points will increase the options offered to consumers.