Competition Authority imposes 98 million lira fine on egg sector in 2 separate investigations

The Competition Board announced that it has imposed 98 million lira in administrative fines as part of 2 investigations conducted into egg producers and related associations.

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Competition Authority imposes 98 million lira fine on egg sector in 2 separate investigations

In a written statement issued by the Competition Authority, it was stated that the Board initiated 2 separate investigations in May 2022 regarding the sector, based on allegations of price fixing, market sharing, and restricting the supply quantity.

The statement indicated that in the first of these investigations, allegations against a total of 34 egg producers were comprehensively examined, while in the second, allegations against 13 egg producer associations and 12 additional egg producers were investigated.

In the first investigation, it was noted that 14 undertakings involved in the investigation requested a settlement. As a result of the settlement processes, the investigation was concluded with Board decisions that included the determination of the violation and administrative fines for the undertakings that accepted the existence and scope of the violation.

"THE MOST SERIOUS VIOLATION"

The statement noted that in the aforementioned investigation, it was determined that 26 producer undertakings had collectively set egg prices and shared the regions where they sold eggs, and that these behaviors were evaluated as having the characteristics of a "cartel," which is classified as the most serious violation in competition law.

In the second investigation, it was pointed out that it was determined that the egg producer associations involved in the investigation had fixed egg prices and restricted the supply of eggs, and the following was recorded:

"These behaviors by the undertakings and associations of undertakings that are parties to the investigation fall under Article 4 of the Competition Law, which prohibits agreements between undertakings that restrict competition and decisions and actions of associations of undertakings that restrict competition. Therefore, as a result of the aforementioned investigations, a total of approximately 98 million lira in administrative fines was imposed on the parties found to have violated Article 4 of the Competition Law."

News Source: AA