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COMPETITION LAW

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store), insert fees, electricity fees, participation in the promotion

fees related to consumers, staff requests, free / taste good, store

opening fees, anniversary fees and end-of-year discount.

• Payment terms are not fully respected within payments to be made

by retailers to suppliers. In food production contracts, the payment

term which is usually determined as 60-90 days is extended up

to 130 days in practice. However, this problem is expected to be

remedied with the relevant provisions introduced by the New

Turkish Code of Commerce

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(hereinafter referred to as the “New

TCC”). As a matter of fact, the New TCC introduces a limitation

of sixty days for payment periods in commercial relationships in

order to protect creditors’ interests.

• Total share of private label products in total shares are remarkably

low in comparison with the shares in European countries. Indeed,

this share is equal to 54% in Switzerland, 47% in England, 40%

in Spain, 31% in Austria and 13% in Italy while this share is just

equal to 8% in Turkey. However, this particular share segment is

growing fast in Turkey and as a consequence of this incremental

expansion; suppliers sometimes face problems in finding shelf

space for their branded products.

Proposals for FMCG Sector

The Board, in the Preliminary Report, made some proposals with

a view to overcome the above-mentioned (possible) problems by being

inspired by the different regulations existing in different countries.

Reduction of Turnover Thresholds for Concentration.

The Board,

on the basis of the above-stated minor acquisitions, proposed to reduce

the turnover thresholds concerning the notification of concentration

specifically for the retailing of FMCG and refers as example to France

where turnover thresholds were reduced by 50% specifically for the

retailing of FMCG.

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The New TCC was published in the Official Gazette dated 14.02.2011 and numbered

27846. To consult the New TCC, see the following link:

http://www.resmigazete.gov.tr/main.

aspx?home

=http://www.resmigazete.gov.tr/eskiler/2011/02/20110214.htm&

main=http://

www.resmigazete.gov.tr/eskiler/2011/02/20110214.htm.