2016.ANA METIN ingilizce.01

Competition Risks Arising From the Selective Distribution

System

As per the Guideline, certain competition risks arise from the

selective distribution, such as lessening in inter-brand competition, and

particularly, cause a decrease in inter-brand competition, closing of the

market to certain types of distributors in the event of cumulative effect,

and ensuring cooperation between suppliers and distributors that cause

restriction of competition. As well, since distribution systems do not

tend to emphasize price competition, some of these systems can be

used for the exclusion of re-sale units (such as discount stores) and

price competition between brands can be in imperiled in case numer-

ous companies in the market use selective distribution

. Also, by selec-

tive distribution systems, it may be purposed to hinder competition via

preventing a new supplier or distributor from entering into the market,

to restrict inter-brand competition by closing of the market to sub-buy-

ers in the market, by the supplier who is in the position of monopoly

Positive Effects of the Selective Distribution System

Some of the positive effects of the selective distribution system

may be specified as follows: (i) helping to solve the free-riding prob-

lems among the distributors, and keeping pre-sales services at the pre-

ferred level, (ii) ensuring decrease in the transportation, logistic and

transaction costs due to provision of the products to limited number of

distributors, (iii) ensuring effective distribution of the product, (iv) the

promotion of distribution services, (v) guaranteeing significant rela-

tionship-specific investments, (vi) contributing to consumer satisfac-

tion, (vii) availing sales forecast and production management, etc.

COMPETITION LAW

143

Koç, Ali Fuat

, AT Rekabet Hukukunda Seçici DağıtımAnlaşmaları, Ankara, 2005, p. 20. Please

see.

%25b1k%2BTezi%2Ftez68.pdf (Access date: 08.01.2016).

Koç, Ali Fuat

, AT Rekabet Hukukunda Seçici DağıtımAnlaşmaları, Ankara, 2005, p. 21. Please

see.

%25b1k%2BTezi%2Ftez68.pdf (Access date: 08.01.2016).

Koç, Ali Fuat

, AT Rekabet Hukukunda Seçici DağıtımAnlaşmaları, Ankara, 2005, p. 27. Please

see.

%25b1k%2BTezi%2Ftez68.pdf (Access date: 08.01.2016).