ARTICLE
8 August 2023

Not So Gentle After All: Substantial Administrative Fines From The Competition Authority

C
CBC Law Firm

Contributor

CBC Law (Formerly Cetinkaya) is a full-service law firm based in Istanbul servicing local and international clients. Our lawyers have extensive expertise in advising on dispute resolution, business crime, technology, data protection and intellectual property. CBC Law prides itself on helping clients navigate their way through a constantly changing and challenging legal landscape. With a seamless multidisciplinary approach positioned at the intersection of industry knowledge and legal expertise, we provide our clients with legal solutions that are tailored to their needs in Turkey.
On August 02, 2023, the Competition Authority announced the amounts of fines issued against 16 companies operating in various sectors pursuant to its decision dated July 26, 2023.
Turkey Antitrust/Competition Law
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On August 02, 2023, the Competition Authority announced the amounts of fines issued against 16 companies operating in various sectors pursuant to its decision dated July 26, 2023. The administrative fines add up to a hefty 151 million 148 thousand Turkish Liras in total.

The investigation was conducted in order to determine whether the undertakings violated the Law on the Protection of Competition ("Competition Law") by entering into "gentlemen's agreements" in labor markets with the intention of not recruiting employees from each other.

The Competition Authority found these agreements to be based on a mutual agreement of the employers not to compete over the effort of the employees, which is one of the most critical resources of businesses. It was also declared in the announcement that such agreements may limit the mobility of labor, and therefore, wages cannot receive their real value. According to the Competition Authority, this ultimately leads to inefficiencies in the distribution of employees and distortion in the competitive structure of labor markets.

On the other hand, the fact that 21 undertakings have been found not to violate the Competition law and have not been imposed administrative fines poses uncertainty about whether individual exemptions will be granted. We will have to wait and see the reasoned decision.

The undertakings subject to administrative fines and the amounts of fines imposed are listed below:

Arvato Lojistik Dis Ticaret ve E-Ticaret Hizmetleri AS

TRY 2,159,522.60

Bilge Adam Yazilim ve Teknoloji AS

TRY 2,183,227.89

Binovist Bilisim Danismanlik AS

TRY 49,831.55

Çiçeksepeti Internet Hizmetleri AS

TRY 517,883.20

D-Market Elektronik Hizmetler ve Ticaret AS

TRY 4,834,124.55

Flo Magazacilik ve Pazarlama AS

TRY 18,021,702.86

Koçsistem Bilgi ve Iletisim Hizmetleri AS

TRY 6,513,239.09

LC Waikiki Magazacilik Hizmetleri Ticaret AS

TRY 59,590,457.10

Sosyo Plus Bilgi Bilisim Teknolojileri Danismanlik Hizmetleri Ticaret AS

TRY 1,094,131.66

TAB Gida Sanayi ve Ticaret AS

TRY 7,293,869.36

Türk Telekomünikasyon AS

TRY 41,022,658.16

Veripark Yazilim AS

TRY 1,116,070.57

Vivense Teknoloji Hizmetleri ve Ticaret AS

TRY 1,218,089.30

Vodafone Telekomünikasyon AS

TRY 5,319,292.25

Zeplin Yazilim Sistemleri ve Bilgi Teknolojileri AS

TRY 192,973.74

Zomato Internet Hizmetleri Ticaret AS

TRY 20,827.94


You can read the relevant announcement here.

With thanks to Ömer Emin Yilmaz for his support of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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ARTICLE
8 August 2023

Not So Gentle After All: Substantial Administrative Fines From The Competition Authority

Turkey Antitrust/Competition Law

Contributor

CBC Law (Formerly Cetinkaya) is a full-service law firm based in Istanbul servicing local and international clients. Our lawyers have extensive expertise in advising on dispute resolution, business crime, technology, data protection and intellectual property. CBC Law prides itself on helping clients navigate their way through a constantly changing and challenging legal landscape. With a seamless multidisciplinary approach positioned at the intersection of industry knowledge and legal expertise, we provide our clients with legal solutions that are tailored to their needs in Turkey.
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