In his written statement, Chairman of the Competition Authority Küle stated that one of the most important issues that have been on the agenda of the public lately is the red meat prices in the country.
Pointing out that red meat prices have increased significantly, especially in the last few months, with the high rate of increase in succession, Küle made the following assessment:
“These price increases in red meat, which is one of the most basic foodstuffs, are undoubtedly closely followed by the Competition Authority as well as other relevant public institutions. As a matter of fact, our Institution has been carrying out studies on the red meat sector since 2022, and extensive investigations on the undertakings and associations of undertakings operating in the sector are currently ongoing.“
Küle stated that in these examinations, which aim to scrutinize the red meat market in a way that covers the country, the structural and regulatory problems of the sector, the market behaviors of the undertakings and associations of undertakings in the sector are discussed.
“Administrative fines up to 10 percent of the turnover of undertakings will be imposed”
Pointing out that the investigations on the aforementioned market behaviors focus on whether there is any formation in the market that violates the competition rules, Küle said:
“In this context, it is primarily evaluated whether the rival undertakings are in an agreement limiting competition, whether there are decisions or actions by the associations of undertakings to prevent competition in the sector, and whether anti-competitive behavior occurs in the relations of large undertakings in the market with retailers. Because these behaviors contrary to the rules of competition can directly or indirectly lead to an increase in red meat prices. In case of detection of these behaviors, which are in violation of the Law on the Protection of Competition No. 4054, administrative fines up to 10 percent of the turnover of the undertakings may be imposed on the undertakings concerned. Our institution is extremely sensitive to price increases in red meat, which has an important place in the nutrition and budget of consumers, and continues to work to detect anti-competitive behaviors in the sector and to punish these behaviors severely.“