Investigation on Mey İçki

According to the TCA’s website, an investigation was initiated on the country’s biggest liquor company, Mey İçki. Mey was established by the joint venture group, comprising Nurol Holding, Özaltın Construction, Limak Construction and Tütsab, that bought the alcoholic beverages department of Tekel (State Monopoly for Alcoholic Beverages and Tobacco) in 2004. Undertaking was acquired by Diageo in 2011 for $ 2,1 billion.

Alleged accusations contain establishing exclusivity on retail selling points and foreclosing the market to rivals thereby violating both the articles 4 and 6 of the Competition Act. Mey İçki is considered to be the dominant company at several liquor markets including the traditional Turkish drink “rakı”.

Since the privatization in 2004, company had been subjected to 5 preliminary inquires but those inquires had never ended up into an investigation. Relying on the statistics that we shared earlier within this blog, we expect that the investigation to be concluded within the first quarter of the 2014.

Predator: The First Encounter

Title sounds like a sequel to the well known sci-fci movie serie but it’s not. It’s about a competition law case. According to the recently announced UN RO RO decision, TCA has encountered its first predator since it was established in 1997.

As it seen from the announced short decision (detailed one yet to be declared) TCA has ruled that the UN RO RO (an international maritime transportation company) imposed predatory pricing over the Pendik (İstanbul-Turkey) – Marseille (France) line and consequently excluded its rival -UND DENİZ- from the market. TCA fined UN RO RO for 841.199,70 TL, roughly 365.000 Euros (% 0,04 of its net sales).

Being the very first TCA decision on the subject, detailed decision is waited to form a frame for the predatory pricing analysis.

PS: Right before the UN RO RO decision TCA had dealt with another predatory pricing case involved Turkish Airlines but Authority had not found any infringement of the law.