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Turkey: Diageo under investigation by Competition Board

By  |  August 11, 2015

Turkey’s antitrust authority opened an investigation into Diageo Plc’s Mey Icki unit amid allegations that the raki maker abused its market dominance in the country.

Preliminary findings submitted to the Ankara-based competition board were deemed to be “serious and adequate,” justifying a probe, the regulator said on its website Tuesday. A representative for Diageo said Mey Icki will review the issues raised and respond within a required time limit.

The $2.1 billion acquisition of Mey Icki in 2011 has already presented challenges for Diageo. Two years after the deal, Turkey’s government enforced a law forbidding advertisements and restricting sales of alcohol. The U.K. company has also encountered difficulties in developing countries including China and India.

Full content: Bloomberg

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