Author: Ecem Süsoy Uygun
During the COVID-19 pandemic, competitive concerns about the pricing behavior of chain markets, manufacturers, and wholesalers engaged in the retail trade of food and cleaning supplies led to an investigation (“Investigation”) by the Turkish Competition Authority (“Authority”). The comprehensive Investigation process and the subsequent decision[1] of the Turkish Competition Board (“Board”), which had a wide repercussion on the public opinion, reveals the current competition law approach towards the retail sector.
Retail and Supply Sector
The Fast-Moving Consumer Goods (“FMCG”) retailing which is the subject of the Decision is defined as the service of selling products such as food, beverages, personal care products, cosmetics and cleaning products to end users, which have high shelf turnover rates, are stocked for a short time and are constantly consumed. In order to categorize the large number of actors operating in FMCG retailing, a distinction is generally made between the traditional channel (grocery stores, gas stations, dried nuts and fruit shops, kiosks, pharmacies, and perfumeries) and the organized channel (supermarkets, hypermarkets and discount markets). According to the decision, the components of FMCG retailing is retail services and the retail chains that provide these services.
In addition to this, the vertical agreements between retailers and the manufacturers/suppliers from whom they source the products they sell constitutes the supply leg of the market.
