Competition Authority fines famous battery brand

The Competition Authority has reached a conclusion in its investigation into Duracell Satış ve Dağıtım Limited. The Authority's statement regarding Duracell is as follows:

"The investigation conducted to determine whether Duracell Satış ve Dağıtım Limited Şirketi, which operates as a battery supplier in the fast-moving consumer goods sector, violated Article 4 of the Law on the Protection of Competition No. 4054 by determining the resale prices of its buyers and restricting the regions and customers to which its buyers can sell, has been completed.

With the Competition Board's decision dated 07.09.2023 and numbered 23-41/786-M, it was decided to conclude the investigation opened against Duracell Satış ve Dağıtım Limited Şirketi through a settlement regarding its practices aimed at determining the resale prices of its buyers, and through commitments regarding allegations of regional and online sales restrictions and non-compete obligations.

Within the scope of the investigation opened with the Board decision dated 07.09.2023 and numbered 23-41/786-M, the final settlement text sent by Duracell Satış ve Dağıtım Ltd. Şti. in accordance with the Competition Board's interim settlement decision dated 18.01.2024 and numbered 24-05/64-MUA was received by the Authority's records on 01.02.2024 with number 48102 within the specified period. In the settlement text, the existence and scope of the violation, as well as the maximum administrative fine rate and amount stipulated in the interim settlement decision, were explicitly accepted by the undertaking;

1. That Duracell Satış ve Dağıtım Ltd. Şti. violated Article 4 of the Law on the Protection of Competition No. 4054 by determining the resale prices of its buyers,

2. For this reason, an administrative fine of 11,411,571.53 TL, which is a certain percentage of its 2022 gross revenue, shall be imposed on the undertaking in accordance with the third paragraph of Article 16 of the same Law and Article 5, first paragraph (b), second paragraph, and third paragraph (b) of the Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Restricting Competition, and Abuse of Dominant Position,

3. In accordance with the seventh paragraph of Article 43 of Law No. 4054 and the fourth paragraph of Article 4 of the Regulation on the Settlement Procedure to be Applied in Investigations Regarding Agreements, Concerted Practices and Decisions Restricting Competition and Abuse of Dominant Position, a 25% discount shall be applied to the administrative fine to be imposed on the undertaking as a result of the settlement procedure,

4. In this context, as a result of the settlement procedure, an administrative fine of 8,558,678.65 TL, which is a certain percentage of its 2022 gross revenue, shall be imposed on the undertaking,

5. Thus, it was decided UNANIMOUSLY to conclude the investigation conducted pursuant to the Competition Board's decision dated 07.09.2023 and numbered 23-41/786-M regarding Duracell Satış ve Dağıtım Ltd. Şti.'s practices aimed at determining the resale prices of its buyers through the settlement procedure, with the right to appeal to the Ankara Administrative Courts within 60 days from the notification of the reasoned decision.

Decision dated 04.04.2024 and numbered 24-16/359-139

Within the scope of the investigation conducted pursuant to the Board decision dated 07.09.2023 and numbered 23-41/786-M;

- The final commitment text submitted by Duracell Satış ve Dağıtım Ltd. Şti. and received by the Authority's records on 19.03.2024 with number 50027 is accepted as it is capable of resolving the relevant competition issues identified within the scope of the file, and is made binding for the relevant undertaking,

- In this context, it was decided UNANIMOUSLY to conclude the investigation conducted pursuant to the Board decision dated 07.09.2023 and numbered 23-41/786-M regarding the allegations of regional and online sales restrictions and non-compete obligations, with the right to appeal to the Ankara Administrative Courts within 60 days from the notification of the reasoned decision."

WHAT IS ARTICLE 4 OF THE LAW ON THE PROTECTION OF COMPETITION?

These are agreements between undertakings that have the purpose or effect of preventing, distorting, or restricting competition directly or indirectly in a particular market for goods or services.

News Source: 12punto