Author: Mert Karamustafaoğlu
Introduction
Fast-moving consumer goods is undoubtedly one of the sectors that the Competition Authority has been working most intensively since the COVID 19 pandemic. Among the most important developments of this period was the Sector Inquiry initiated on Fast Moving Consumer Goods (“FMCG”) Retailing, which was a precursor to the investigations launched against retailers. As such, the Preliminary Report published on 05.02.2021 clearly outlined the main points of the investigations that would later continue in the field of FMCG. In many respects, the Preliminary Report, which contained highly influential recommendations, addressed competitive concerns in the FMCG market. Perhaps for this reason, many investigations were opened in the FMCG market following the Preliminary Report.
After almost two years following the publication of the Preliminary Report, the FMCG Final Report[1] (“Final Report”) was published on 30.03.2023. Although some of the findings in the Preliminary Report have been stepped back, the Final Report serves as a very clear warning text for the future.
Findings of the Final Report
It should first be noted that the Final Report is the second sector inquiry report written on this subject. The First Report, published in 2012, is actually important as it is the first study to reveal the dynamics of the sector and to analyze it in terms of competition law. However, when compared to the Final Report, the First Report draws a more optimistic framework in terms of competition concerns. The Preliminary Report, which was published before the Final Report, stood out with its rather radical recommendations. For example, the Preliminary Report points out that concentrations in the relevant market have increased, and suggests the re-determination of sector-specific notification thresholds for mergers and acquisitions.
