Turkey's Competition Authority has imposed a significant financial penalty on Frito-Lay, a subsidiary of PepsiCo, due to its involvement in anti-competitive practices. The company, known for popular snack brands like Doritos and Lay’s, was found to have restricted rival brands from accessing the market. In addition to the fine, Frito-Lay must now implement measures to ensure fair competition, especially in smaller retail outlets. Retailers are required to allocate visible space for competing brands on Frito-Lay stands, ensuring that these products are not excluded from sales points.

Penalties and Compliance Measures

The Turkish Competition Authority fined Frito-Lay approximately 1.3 billion Turkish lira, equivalent to around $36 million, following an investigation into its business practices. This substantial penalty reflects the severity of the violations, which included preventing competitors from selling packaged chips at various retail locations. The authority mandated specific actions to rectify these practices, emphasizing the importance of fair competition in the market.

Frito-Lay is now required to adhere to strict guidelines to promote competitive fairness. Retailers must allocate 30% of the visible and vertical space on Frito-Lay stands to competitor products. This designated area must be clearly marked with a separator and labeled as reserved for other brands. Additionally, Frito-Lay cannot prevent the sale or visibility of competing brands at any point of sale. Financial incentives to retailers beyond standard purchases are prohibited, and only one Frito-Lay-branded stand is allowed per sales point. If no competitor products are available, the reserved space must remain empty rather than being filled with additional Frito-Lay items.

Enhancing Consumer Choice and Market Fairness

To address the concerns raised by the Turkish Competition Authority, Frito-Lay must take proactive steps to ensure a more balanced marketplace. Smaller retail outlets, particularly those under 200 square meters, are a key focus area for these changes. By implementing these new regulations, regulators aim to enhance consumer choice and foster a healthier competitive environment within the snack industry.

The measures introduced are designed to prevent monopolistic behavior and encourage a diverse range of products on store shelves. Competing brands will now have a dedicated space on Frito-Lay displays, ensuring their visibility to consumers. This shift is expected to benefit both emerging and established snack brands by providing them with better access to retail spaces. Ultimately, these changes are anticipated to lead to increased innovation and variety in the market, benefiting consumers who will have more options to choose from. Regulators believe this will contribute to a more dynamic and equitable sector overall.