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What did the Turkish Competition Authority Ignore in its First Hub-and-Spoke Cartel Decision?

Year 2023, Volume: 12 Issue: 1, 21 - 33, 26.01.2023

Abstract

Hub-and-spoke cartels have recently come under the spotlight of competition authorities. The Turkish Competition Authority (TCA) found five grocery retailers and a cooking oil supplier in breach of Article 4 of the Turkish competition act (the equivalent of Article 101 TFEU). In this article, we discuss some of the drawbacks and limitations of the TCA’s first hub-and-spoke cartel decision. We examine how failure to conduct a simple economic analysis misled the TCA in its theory of how the hub-and-spoke cartel was formed and in its treatment of retailers’ sequential price setting.

References

  • Amir, R. & Stepanova, A. (2006). Second-mover advantage and price leadership in Bertrand duopoly. Games and Economic Behavior, 55(1), 1-20. https://doi.org/10.1016/j.geb.2005.03.004
  • Food Retailers Association. (2021a). Members Catalogue 2021. https://www.gidaperakendecileri.org/?page_id=799
  • Food Retailers Association. (2021b). Retail Shopping Report. https://www.gidaperakendecileri.org/?p=4202
  • Deloitte. (2022). Global Powers of Retailing 2022. https://www.deloitte.com/content/dam/assets-shared/legacy/docs/analysis/2022/gx-global-powers-of-retailing-2022.pdf
  • Garrod, L., Harrington, J. E. & Olczak, M. (2021). Hub-and-Spoke Cartels: Why They Form, How They Operate, and How to Prosecute Them. The MIT Press.
  • Harrington, J. E. (2017). The Theory of Collusion and Competition Policy. MIT Press.
  • Klein, B. (2020). Inferring Agreement in Hub-and-Spoke Conspiracies. Antitrust Law Journal, 83(1), 127-164.
  • OECD. (2019). Roundtable on Hub-and-Spoke Arrangements – Background Note. In OECD. https://one.oecd.org/document/DAF/COMP(2019)14/en/pdf
  • Orbach, B. (2016). Hub-and-spoke conspiracies. The Antitrust Source, 15(4), 1-15. http://www.americanbar.org/content/dam/aba/publishing/antitrust_source/apr16_orbach_4_11f.authcheckdam.pdf
  • Turkish Competition Authority. (2021a). Board Decision, numbered 121-53/747-360, dated 28.10.2021. https://www.rekabet.gov.tr/Karar?kararId=82884ab7-9d26-405c-9019-e2b9ee10f2c7
  • Turkish Competition Authority. (2021b). FMCG Retail Sector Inquiry Preliminary Report. https://www.rekabet.gov.tr/Dosya/geneldosya/htmperakendeciligisektorincelemesionraporu-pdf

Rekabet Kurulu İlk Topla-Dağıt Karteli Kararında Neyi Göz Ardı Etti?

Year 2023, Volume: 12 Issue: 1, 21 - 33, 26.01.2023

Abstract

Topla-dağıt kartelleri son zamanlarda rekabet otoritelerinin ilgi odağı haline geldi. Rekabet Kurulu (RK), beş perakendeci ve bir bitkisel yağ tedarikçisinin Rekabet Kanunu'nun 4. Maddesini (ABİHA'nın 101. Maddesinin eşdeğeri) ihlal ettiğini tespit etti. Bu makalede, RK'nın ilk topla-dağıt karteli kararının bazı eksiklik ve sınırlamalarını tartışıyoruz. Basit bir ekonomik analiz eksikliğinin, topla-dağıt karteli iddiasının değerlenedirilmesinde ve perakendecilerin sıralı fiyat geçişlerine ilişkin yaklaşımında RK'yı nasıl yanılttığını inceliyoruz.

References

  • Amir, R. & Stepanova, A. (2006). Second-mover advantage and price leadership in Bertrand duopoly. Games and Economic Behavior, 55(1), 1-20. https://doi.org/10.1016/j.geb.2005.03.004
  • Food Retailers Association. (2021a). Members Catalogue 2021. https://www.gidaperakendecileri.org/?page_id=799
  • Food Retailers Association. (2021b). Retail Shopping Report. https://www.gidaperakendecileri.org/?p=4202
  • Deloitte. (2022). Global Powers of Retailing 2022. https://www.deloitte.com/content/dam/assets-shared/legacy/docs/analysis/2022/gx-global-powers-of-retailing-2022.pdf
  • Garrod, L., Harrington, J. E. & Olczak, M. (2021). Hub-and-Spoke Cartels: Why They Form, How They Operate, and How to Prosecute Them. The MIT Press.
  • Harrington, J. E. (2017). The Theory of Collusion and Competition Policy. MIT Press.
  • Klein, B. (2020). Inferring Agreement in Hub-and-Spoke Conspiracies. Antitrust Law Journal, 83(1), 127-164.
  • OECD. (2019). Roundtable on Hub-and-Spoke Arrangements – Background Note. In OECD. https://one.oecd.org/document/DAF/COMP(2019)14/en/pdf
  • Orbach, B. (2016). Hub-and-spoke conspiracies. The Antitrust Source, 15(4), 1-15. http://www.americanbar.org/content/dam/aba/publishing/antitrust_source/apr16_orbach_4_11f.authcheckdam.pdf
  • Turkish Competition Authority. (2021a). Board Decision, numbered 121-53/747-360, dated 28.10.2021. https://www.rekabet.gov.tr/Karar?kararId=82884ab7-9d26-405c-9019-e2b9ee10f2c7
  • Turkish Competition Authority. (2021b). FMCG Retail Sector Inquiry Preliminary Report. https://www.rekabet.gov.tr/Dosya/geneldosya/htmperakendeciligisektorincelemesionraporu-pdf
There are 11 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Emin Köksal 0000-0003-4232-3193

Şahin Ardıyok 0000-0002-0303-8376

Publication Date January 26, 2023
Published in Issue Year 2023 Volume: 12 Issue: 1

Cite

APA Köksal, E., & Ardıyok, Ş. (2023). What did the Turkish Competition Authority Ignore in its First Hub-and-Spoke Cartel Decision?. Ekonomi-Tek, 12(1), 21-33.