Turkey: Market Foreclosure

Last Updated: 10 March 2015
Practice Guide by ELIG, Attorneys-at-Law

Market foreclosure by a dominant company is regulated under Article 6 of Law No. 4054 on the Protection of Competition (“Competition Law”). It is usually achieved through the unilateral conduct of a dominant company. In cases where multiple companies agree to foreclose the market, these are evaluated under Article 4 of the Competition Law. Please see “Bilateral Exclusionary Conduct” for further information on such agreements.

Market foreclosure is explained in detail under the Turkish Competition Board’s (“Board”) recently enacted Guidelines on Abusive Exclusionary Conduct by Dominant Undertakings (“Guidelines”). In fact, market foreclosure is the basis of any exclusionary conduct by a dominant company. In line with this, the Guidelines set forth the basis of the Board’s assessment on exclusionary conduct as actual or potential anticompetitive market foreclosure by the dominant company.

The Guidelines provide a definition for anticompetitive market foreclosure as follows: “the dominant company’s obstructing or preventing its actual or potential rivals from reaching customers or supply sources through its abusive conducts, to consumers’ disadvantage”. Consumers’ disadvantage may take the form of price increases, decreases in quality, innovations or variety.

The Board considers the following factors when assessing cases of market foreclosure: (i) the position of the dominant company, (ii) the conditions on the relevant market, (iii) the position of the dominant company's competitors, (iv) the position of the customers or input suppliers, (v) the extent of the allegedly abusive conduct, (vi) evidence of actual market foreclosure and (vii) direct evidence of any exclusionary strategy in general.

A dominant company may foreclose the market in many different ways. The Guidelines list the most well-known and common ways of anticompetitive market foreclosure as follows:

- Exclusive dealing: The dominant company may enter into vertical agreements with its customers and condition the purchase upon the customer dealing exclusively or to a large extent with the dominant company. Exclusivity may occur in the case of a written agreement or de facto (through the dominant company’s conduct that may create exclusivity – such as loyalty rebates, extra discounts, volume commitments, surplus, etc.). Even though exclusivity brings along pro-competitive effects, it may result in anticompetitive market foreclosure for the actual competitors or potential newcomers. The Board assesses the anticompetitive foreclosing effects of exclusive agreements in light of the following:

  1. Size of the foreclosed part of the market: The Guidelines does not provide a specific foreclosure ratio which would be deemed serious. That being said, foreclosing 40% of the market could reasonably be alarming for the Board.
  1. Trade level: If the purchaser is on the retail level, it may create more serious foreclosure effects than the case where the purchaser is on the wholesale level.
  1. Barriers to entry: The higher the barriers to entry are, the more anticompetitive foreclosure effects the exclusive agreements would create. It is important for the actual competitors to reach customers and for the potential newcomers to enter into the market.
  1. Importance of the supplier—the dominant company—for the customers; unavoidable trading partner and duration of the exclusivity: If the dominant company and its competitors can compete on the same terms, it is less likely that exclusive agreements foreclose the market anti-competitively. Still, the duration of the exclusivity matters in such cases. If, also, the dominant company is an unavoidable trading partner for customers, even short terms of exclusivity may foreclose the market.

- Refusal to supply: In certain exceptional circumstances, refusal to supply by a dominant company may be considered restrictive. The Board seeks the following elements: (i) the company engaging in the refusal must be in a dominant position; (ii) the company must continue to supply certain customers while refusing to deal with others; (iii) there must be a long-term commercial relationship between the dominant company and the relevant purchaser; (iv) the refusal to deal must not be justified by objective, reasonable grounds; and (v) the refusal to deal must be motivated by anticompetitive intent. Please see “Refusal to Supply” for further information.

- Predatory pricing: This is a pricing strategy by a dominant company where it performs below-cost pricing in order to (i) exclude its existing competitors from the market, (ii) prevent potential new entries to the market or (iii) prevent its existing competitors’ tendency to reduce their prices. Please see “Below-cost Pricing” for further information.

- Margin/price squeeze: Margin squeeze occurs when a company, which is vertically integrated and dominant in the upstream (mostly wholesale) market, narrows the margin between the wholesale price of the input it controls in the upstream market and the price of the product in the downstream market. As a result, the profit margin for competitors in the downstream market, whose operations are dependent on the use of the input and who have to pay the wholesale price as well as compete with the retail price charged by the vertically integrated dominant company, is squeezed. Please see “Price Squeezing” for further information.

- Rebates: These rebates are offered by the dominant company to the purchasers on the condition that they will be repeatedly purchasing from the same seller (the dominant company). Please see “Loyalty Rebates” for further information.

- Tying: Tying refers to the practice of conditioning the sale of one product on the buyer’s acceptance to simultaneously purchase a separate product. In general, the tying product is a desirable product with a high level of demand, in contrast to the tied product, which is usually less desirable and more difficult to sell. Please see “Tying and Leveraging” for further information.

This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Contact the Author?
Click here to email the Author
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Other Turkey Advice Centres
Intellectual Property
Privacy and Data Protection
More Advice Centers
Significant Recent Cases
Turkish Competition Board case summaries.
Useful Resources
A collection of articles, essays and reports written by our experts.
The most recent developments within our firm and practice areas.
Upcoming Events
Information on upcoming or recent events and conferences hosted by ELIG.
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.