Competition authority: bring distance restrictions to chain markets
April 3, 2023
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Competition Authority, recently “Türkiye FMCG Retailing Industry Review Final ReportThis report describes in its simplest terms how markets work and in fact what needs to be done contained.
Competition Authority, recently “Türkiye FMCG Retailing Industry Review Final ReportThis report describes in its simplest terms how markets work and in fact what needs to be done contained. Special “Draft law amending the retail regulation law“What Items to be added it was remarkable.
The key point in the drafted report is that the chain markets are in place. with locations related to. Retail chains may not be able to open branches at every step in the future, according to the report. Because the Competition Authority believes that chain market branches should be limited to a certain extent. If such an arrangement becomes reality, the distance between two branches of a retail chain would be roughly equal to, for example, the flight distance of the bird. at least 2 kilometers it could be.
It is believed to increase competition
According to the Competition Authority report, the existence of many establishments belonging to the same chain market in a certain area, the rival companies open branches in this area. precedes it. As such, no competitive environment can be created. That is why the Competition Authority ban indicates that it can be applied.
The report contains the following statements:
For store openings, retailers within the same economic integrity can open a second branch within a certain distance. can be prohibited and it is believed that these companies can be prevented from making an acquisition within the same scale. In fact, retail chains belonging to the same group are very close to each other in certain regions, which may prevent a new retailer from entering that region. For this reason, the regulations in this area are competitive in the market. positivewill have consequences view is moved.
Nothing is final for now
The report of the Competition Authority is currently a recommendation. However, a possible adjustment would make these recommendations can consider. If such a situation arises, each retail chain can only have one branch in the same region. This gives citizens the opportunity to reach other chain markets.
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