Diageo accused of breaking competition law

18th February, 2013 by Rupert Millar

Turkey’s competition board has announced it is to investigate Diageo’s Mey Icki spirits group.

Mey-IckiIt is claimed that the company, acquired by Diageo in 2011 for US$2.1 billion, has breached competition rules by preventing the sale of competitors products in some stores.

The news – announced by Reuters this morning (18 February) – is just the latest in a wave of competition rulings around the world.

Diageo is currently trying to pass its deal with United Spirits through the Indian government, while AB InBev recently acquiesced to US government proposals concerning its takeover of Grupo Modelo last year.

The new deal effectively sees AB InBev grant many key rights surrounding distribution in the US to Constellation Brands.

 

One Response to “Diageo accused of breaking competition law”

  1. Peter Bowyer says:

    A drinks company trying to prevent the sale of a competitor’s product? Surely not!!! Where are the people who are supposed to deal with these things all around the world? Have they really no idea what is going on?

    The world is full of big drinks companies who pay venues thousands of dollars not to stock competitor’s products – the bigger the company the bigger the payment and more widespread the practice.

    The larger the company the more immoral the practices.

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