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Fast Moving Goods Retail Market
The fast moving goods (“FMG”) retail market has been in a rapid
transformation since the beginning of 2000s. The organized retail is
increasing in FMG retailing. On the other hand, the numbers and the
market shares of the conventional retailing are decreasing. It can be
acknowledged that, together with the increase of their market share,
the mergers and acquisitions between organized FMG retailers and
rates of concentration are also increasing. The Authority by taking into
consideration the structural transformation and increase of concentra-
tion determined that the organized retailers are getting stronger in their
horizontal and vertical relationships and taking an advantageous posi-
tion against the supplier undertakings and increased their role in deter-
mining the commercial conditions in the supply network through buyer
power.
It is stated in the Report that the Authority, by investigations they
hold in relation to the FGM retailing, aims to closely follow up the
market, display a proactive approach to competition concerns and
search for ways to resolve problems which may arise out of the buyer
power by tools which would not hinder the functioning of the market.
In this frame, Authority has dealt with the retail market on the basis of
rule of reason analysis and initiated discussions on three methods
which could be a model for Turkey:
• Decreasing the turnover thresholds in the notification of con-
centration only being limited to FMG retailing market
• Introducing Code of Practice and system of Ombudsman
• Sending the supplier-retailer agreements periodically to the
Authority
Conclusion
As it can be acknowledged when preparing the Report, Authority
has deliberately chosen markets where they cannot resolve the compe-
tition concerns on their own by their sole intervention, but where there
is a need for regulations in the scope of competition policy of the other
administrative authorities and thereby tried to create awareness on
these subjects.
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