Poultry Companies Fined by Competition Board

TURKEY - The poultry sector has been fined 27.6 million lira (TRY) for breaking anti-trust rules.
calendar icon 10 December 2009
clock icon 3 minute read

The Competition Board has levied a fine of TRY27.6 million against nine companies in the domestic white meat sector, 0.8 per cent of their total gross revenue as of the end of the 2008 fiscal year, for antitrust actions and other competition violations.

Today's Zaman reports that additionally Zuhal Dastan, the chairman of Pak Tavuk Gida and the president of the Poultry Meat Producers and Breeders Association (BESD-BIR), is to pay TRY35,227 for her leading role in the antitrust actions. The board announced the results of its investigation of over 27 poultry companies and BESD-BIR on 9 December, which it has been conducting since August of last year.

The Competition Board imposed a fine of TRY3.85 million on Abalioglu Yem, TRY5.08 million on Banvit, TRY2.99 million on Beypi, TRY4.2 million on CP, TRY3.17 million on Erpiliç, TRY2.94 million on Keskinoglu, TRY1.17 million on Pak, TRY1.66 million on Seker Piliç and TRY2.5 million on Senpiliç.

The companies have the right to apply to the Council of State to appeal the Competition Board's decision.

The fine caused harsh reaction and resentment in the sector. Keskinoglu said the decision was 'unacceptable' and that they would definitely appeal it after seeing the board's reasons for its decision, which will be released later. He insisted that prices are always determined by supply and demand in the market and denied all allegations of being involved in any antitrust activity. "On the contrary, we are struggling, trying to avoid reflecting the real costs to the customers," he added.

BESD-BIR General Secretary, Yüce Canoler also issued a statement, saying they would wait for the reasoning behind the decision before bringing the case to the Council of State.

Today's Zaman reports that the sector had been in the red for 14 months last year and therefore convened to discuss what steps had to be taken to turn things around in the sector, he explained. Mr Canoler said they have not been able to conduct cost calculations in the sector since the Competition Board started its investigations.

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