Public sector concessions damage fair competition, report says
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Concessions and advantages provided for public corporations violate fair competition rules in many markets, according to a Turkish Competition Authority report released on Monday.
The document, titled “2013 Competition Report,” points out that apart from publicly owned firms operating directly or indirectly in the transportation, energy, banking and food sectors, there are also significant numbers of public corporations in which provincial special administrations and municipalities have shares, adding that despite rapid privatization in recent years public corporations dominate certain sectors.
State-owned Ziraat Bankası, Halkbank and Vakıfbank in the banking sector and Turkey’s national flag carrier Turkish Airlines (THY) in the transportation sector are examples of public firms that are in competition with private firms.
The report indicates that according to the Organization for Economic Cooperation and Development’s (OECD) 2008 figures, Turkey is ranked in third place in the share of public corporation in the economy after Poland and Italy among European Union member states