ABSTRACT

As seen in many developing countries, concentration and globalisation have substantially increased in food retailing in Turkey. Foreign direct investment, incentives to reduce informal economy through modern retailing, income, education, economic crises and urbanisation are the main drivers for structural change of the retail supply chain. Market shares of global retailers have increased in general and also food sub-sectors. The restructuring and concentration in food retailing have changed the marketing system and conditions facing firms. Concentration is also expected to increase in the future. With increasing concentration, anti-competitive practices have appeared in the food supply chain in Turkey: listing fees, shelf fees, advertising and announcing fees, discount pressure, unconditional product restoration and forces for own private label product package have been commonly used as anti-competitive practices. Based on the interviews and literature survey and news gathered from newspapers, it is found that several anti-competitive practices are executed by supermarkets in Turkey when these practices are compared with the anti-competitive practices determined by the UK Competition Commission (2000). It is observed that at least 16 of 52 practices are exercised by supermarkets against the suppliers. Moreover, price flexing and sales below cost can be a reflection of the monopoly power in the consumer market segment.