Turkey: Turkish Competition Law

Last Updated: 23 July 2010
Article by Bilge Saltan

Turkey's legislation in the Competition Law field is not recent. Many bills were drafted by the Turkish Ministry of Trade starting from 1971 with the "Bill on the Regulation of Activities Related to Goods and Services, which are Subject to Trade, for Protection of the Consumer" till 1984 when the Ministry of Industry and Trade drafted the "Bill on the Agreements and Practices Restricting Competition". While the first bills were related to consumer of protection, the latter bill discussed monopolization and cartelization in separate sections and finally The Act No.4054 on the Protection of Competition "Competition Act" was established in 1994.

In this law making process, adoption of European Union's economic model to national policy has been most effective as Turkey had felt an urge to fill the gap in regulation. There are two main reasons to explain this urge. The first reason is that Competition regulations are necessary tools for every market-based economy. Competition is defined in economic terms by the official website of the TCA (Turkish Competitive Authority) as the rivalry in a market engaged in by sellers to increase their sales of goods and services by gaining more customers, thus increasing their profits. The second reason arises from Turkey's obligation to comply with the European standards. With this respect should Turkey wishes to have an economy such as in European countries, effective measures against anticompetitive behaviors are needed to be adopted .

In order to regulate competitive market; The European Union's legislation is a good trustworthy example which had inspired many non European Union countries such as Turkey. For an example Article 101 of the Treaty on the Functioning of The European Union "TFEU" (ex Article 81 of the TEC) prohibits company agreements which are incompatible with the internal market: "All agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the internal market...". As a reflection of this regulation Turkish Competition Act prohibits agreements and concerted practice limiting or having a risk of limiting the competition within the context of the Article 4. It is obvious that undertakings are the decision making power and the controller of the market. When acting together, market may have a risk to go to the oligopoly market. With the dominant position, undertakings may give a direction to the market of good or service for their own benefit. This will lead an inevitable breach of the principles of competitive market. However agreements, concerted practices and decisions would be lawful in the case, where those activities aid to improve economic and technique condition of the service and the good market, when consumer benefits and general economic benefits are higher, when the activities do not affect competitive market.

Furthermore Article 102 of the TFEU (ex article 82 of the TEC) states that the European Union prohibits any abuse of dominant positions: "Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States". As an adoption of this, Article 6 of the Turkish Competition Act is related to the prohibition of the abuse of the dominant position. The crucial point here is to make a distinction in two points; whether the actor is in a dominant position or not. It is not illegal to be found in a dominant position in a competitive free market. The point is to make consumer dependent to the dominant undertaking, and the abuse of the position.

As stated above the "Competition Act" resumes these major prohibitions in its Articles 4 and 6 with some amendments. It also introduces new principles which are not regulated in the European Union law as the "Concerted Practice Presumption". Moreover, the Competition rules included in the European Council Regulation No.139/2004 on the control of concentration between undertakings also appear in the Turkish "Competition Act No.4054" in its Article 7. However, Turkey takes into consideration many relevant EU case-laws while applying the Competition Act clauses more effectively.

Additionally, The Turkish "Competition Act No.4054" establishes the Turkish Competition Authority "TCA" as an autonomous law enforcement agency with vast investigative prerogatives. The Board consists in seven members appointed for six years. The enforcement procedures to investigate an alleged fair competition violation start whether with the TCA initiative or with a complaint. Should an infringement is established; the TCA is empowered to fine the transgressing undertakings. Its decisions may be appealed to the special chamber of the Turkish Council of State competent to review TCA rulings. This national authority structure tends to fits the European standards. Compared with one of the European Countries, France also embraces quite a similar organization in its Competition Authority. Although the French Board members are numerous, the general organization of both authorities presents a few similarities. Both authorities gained the required respectful position within the scope of business community that guarantees an effective mission for them. Some differences are still ought to be highlighted: Unlike the French Competition Authority which had built many co-operations ties with other national competition authorities, the TCA is still working on establishing agreements with other competition agencies. Cooperation across national boundaries is a necessary measure to take in order to reach effective competition law enforcement. This lack can be justified by the TCA being a recent institution. The challenge from now on will be to work on gaining more experience in the years to come in order to boost its chances on being an important regulation authority worldwide.

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.

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.

Authors
 
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”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

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 or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq 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 of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions