Fast Moving Consumer Goods (FMCG) retail sector is one of the important areas that are under the microscope of the Competition Authority due to its structure and key role in the economy. The Authority regularly monitors the sector meticulously and follows the developments in the sector closely. Prepared in this context, Türkiye FMCG Retail Sector Inquiry Preliminary Report was shared with the public on 05.02.2021.

During the preparation of the Final Report, information and documents were requested from many undertakings, associations of undertakings and public institutions, including organized FMCG retailers, suppliers, research companies, undertakings providing online supermarket services and internet-based commercial platforms. In addition, an Economic Analysis Report about the buyer power in the sector was prepared by the Economic Analysis and Research Department of our Authority.

After revealing the general structure and functioning of the sector in the examinations made within the scope of the Final Report, how the concentration in the sector has increased is analyzed and whether separate merger and acquisition notification thresholds are needed for the retail sector is considered. Since the increase in the concentration in the FMCG retail sector over the years affects the markets where the products are produced, packaged and supplied, the effects of the purchasing power of the undertakings operating in the retail market in the supply market to the sector are also discussed in the Final Report. The report focuses on especially the effects of the abuse of buyer power on competition and offers solutions to eliminate the possibility of abuse of buyer power. In addition, the Report examines the trend and rate of digitalization in the sector and discusses taking the effects of digitalization into account in competition law analyses concerning this sector. Some factors that may adversely affect the competitive structure of FMCG retail sector are also handled, and evaluations about unfair commercial practices, company behavior that may mislead consumers, production of special weight products and binding the opening of new stores to population criteria are included.

Click here for Türkiye FMCG Retail Sector Inquiry Final Report (in Turkish).