NEWSLETTER-2021

143 COMPETITION LAW • Consumers will be provided with the opportunity to access more product options at the sales points, • Competitive concerns arising from the strength of CCSD’s product portfolio will be eliminated by separating the carbonated and non-carbonated products from cola products by also introducing sub-categories, • Competitive parameters in the relevant markets will become comparable in terms of competitors and sales points, • Awareness regarding the commitments to be implemented will increase via the notifications to be made by CCSD, • The shortening of contract periods (with some exceptions), will make the market more competitive, • With some exceptions, ending exclusivity in non-carbonated drinks will increase the level of competition in the relevant market. Accordingly, indicating that the commitment package is proportional, is suitable for eliminating competitive concerns, and can be implemented within a short time and effectively, the Board decided to conclude the investigation by accepting the relevant commitment package and deeming the commitments binding. Conclusion The most significant commitment in the package is arguably the separation of the single contract for all products into three separate contracts for cola drinks, other carbonated products, and non-carbonated products. Coca Cola’s dominance is evident in the market for cola drinks, but not so clear in other carbonated drinks and even less so in non-carbonated drinks. As a result of this commitment, CCSD will not be able to tie/bundle all of its products in a single contract, and thus, will not be able to leverage its high market power and bargaining ability in cola products to gain advantage in the other two. In addition, the 5% increase in CCSD’s obligation to allow its competitors’ products in its merchandising refrigerators will also affect the availability of competitors’ products, likely resulting in a marginal market share loss.

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