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March 23, 2021

Unilever fined in Turkey over violation of ice cream competition laws

Consumer-goods giant Unilever has 60 days to contest a fine imposed in Turkey over violations of local competition rules.

By Dean Best

Unilever’s business unit in Turkey has been fined TRY480m (US$61.3m) by the country’s competition authority after ruling the consumer-goods giant abused its dominant position in ice cream to the detriment of local producers.

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In coming to its decision, the Turkish Competition Authority concluded Unilever offered illegal discounts on ice creams through local resellers, thereby restricting competition and leading to abuse of its dominant status in the market.

Unilever was also fined for not allocating sufficient point-of-sale capacity to rival manufacturers in sales locations of 100 square meters or smaller under an exclusivity agreement which requires 30% of the freezer space to be put aside for other competing brands.

The company has 60 days to respond to the decision, taken on Monday 22 March, otherwise legal court proceedings will be initiated, the Turkish Competition Authority said in a statement.

“We strictly comply with all laws and regulations wherever we operate, including in Turkey, and intend to appeal against this decision by the Competition Board,” a Unilever spokesperson said.

The FMCG major sells its Magnum and Cornetto brands in Turkey, along with the Algida line, according to its website. Back in 2017, Unilever was also hit with a fine by competition authorities in Italy over similar violations.

Related Companies

Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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