Turkey: The New Turkish Merger Regime at a Glance

Last Updated: 9 November 2010
Article by Neşe Taşdemir Önder and Filiz Toprak Esin

In November 2007, the Turkish Competition Authority (the "TCA") declared on its agenda a new communiqué on merger control. Nearly three years later, the TCA has completed its work on a new Communiqué on the Mergers and Acquisitions Subject to the Approval of the Competition Board ("Communiqué No. 2010/4 or "the new Communiqué"). Communiqué No. 2010/4 was introduced on October 7, 2010, and will become effective as of January 01, 2011. There are many points where the new Communiqué differs from the current Communiqué on Mergers and Acquisitions No. 1/1997 as amended (the "Communiqué No. 1997/1" or "the old Communiqué") differ. This article aims to provide an overview of the highlights of this long-awaited Communiqué.

Definition of a Concentration

Communiqué No. 2010/4 adopted the concept of "change in control on a lasting basis" as a transaction to be regarded as a merger & acquisitions. Although the old regime was majorly adopted from EU Regulation 4064/89, the wording of the old Communiqué was badly drafted such that the requirement of change in control was understood to be only in relation to acquisitions. With respect to acquisitions it led to a misunderstanding that even in the case of acquisitions there should not necessarily be a change in control. The old legislation did not either contain any provision as to the change in control being "on a lasting basis".

The old Communiqué defines among concentrations the creation of joint ventures which perform as an autonomous economic entity possessing labor and assets to achieve their functions, and which do not have as their object or effect the restriction of competition between the undertakings party to the Joint venture, or between these undertakings and the joint venture. In the new system the coordination of competitive behavior is no longer relevant to the definition of a concentration but whether the JV is full – function. Article 5 of the new Communiqué defines as a concentration the creation of a joint venture that performs on a lasting basis all the functions of an autonomous economic entity and leaves the issue of coordination to substantive analysis under the provisions of the Competition Act.

Similar to EU practice, the new notification form incorporated into the Communiqué No. 2010/4 includes a section specifically dedicated to the cooperative effects of a joint venture.

As in the current EC Merger Regulation, transactions that are linked by condition or take the form of a series of transactions in securities within a reasonably short period of time are treated as a single concentration in the new regime.

Notification Thresholds

The new Communiqué abandoned the market share threshold foreseen in the old regime and introduced new turnover thresholds. According to Article 7 of the new Communiqué, if the combined aggregate turnover in Turkey of the parties to the transaction exceeds TL 100 million (approximately EUR 50.8 million as of 03.11.2010) and the aggregate Turkish turnover of each of at least two of the parties to the transaction exceeds TL 30 million (approximately EUR 15.2 million as of 03.11.2010), or if the worldwide turnover of one of the parties exceeds TL 500 million (approximately EUR 254 million as of 03.11.2010) and the Turkish turnover of at least one of the other parties exceeds TL 5 million (approximately EUR 2.5 million as of 03.11.2010), the transaction must be subject to prior notification. There has been some criticism about the level of the thresholds not being realistic, but the new regime foresees revision by the TCA of the turnover thresholds every two years.

An important improvement to the old system is the clarification that where there is no affected market as a result of a transaction, there will no requirement for a notification, with the exception of joint ventures, even if the transactions exceed the turnover thresholds.

With respect to the calculation of turnover thresholds, the TCA has introduced a system similar to that set by the current EC Merger Regulation.

Any two or more transactions between the same persons or undertakings occurring within a two-year period shall be treated as a single concentration for the purpose of calculating the thresholds.

Prior Notification Process

The notification form has been revised to require more detailed information on the transaction than currently required by the existing form.

One of the most useful developments in that regard is the intention to adopt a notification system similar to the "short form notification" applied by the EU Commission. In those cases where (i) a party acquires sole control of an undertaking over which it had already joint control or (ii) the aggregate market share of the parties in a horizontal relationship is less than 20%, or at least one of the parties' market share is less than 25 % in vertical relationships in an affected market in Turkey, the undertakings concerned are not required to complete the entire form.

A welcomed improvement is the introduction of the definition of concept of "affected markets" in the new notification form. The old notification form included a question on the affected markets but the concept led to a lot of controversy since it was nowhere defined in the Turkish competition legislation. The new notification form defines this concept as a product market in which the parties have vertically or horizontally overlapping activities.

Communiqué No. 2010/4 also mandates the announcement of the notified transaction on the TCA official website. The announcement will include information on the parties concerned and their fields of activity. The published summary of the transaction must be drafted in such a way that it contains no confidential information or business secrets.

The Turkish Competition Authority used to require the final version of an agreement to officially start the notification process whereas the new Communiqué does not require the agreement to be final for that purpose.

Substantive Analysis – Remedies

With respect to substantive analysis the old Communiqué cited among other factors to be considered, the benefit of end users and intermediaries. The new Communiqué abandoned the consideration of the benefit of intermediaries and limited its scope to the benefit of consumers.

The new Communiqué also introduced the concept of creation or strengthening of "collective dominance" as a result of a transaction.

One of the most remarkable changes is the inclusion of the concept of "efficiencies" in the TCA assessment of a concentration.

The new Communiqué under Article 14 introduces the concept of commitments which, the undertakings involved may give to eliminate the competition concerns on the creation or strengthening of a dominant market position. The TCA officials have expressed their intention to publish detailed guidelines on the application of the system similar to those published in the EU Commission Notice on Remedies.


The changes constitute a significant step forward for Turkey's merger control regime. With the enactment of Communiqué No. 2010/4 and the adoption of the new notification form, the TCA aims to meet the needs of dynamic competition and eliminate deficiencies of the old merger control regime. It is essential though that Communiqué No. 2010/4 be supported by clear guidelines outlining the general principles applicable to efficiencies, remedies and conditional clearance decisions.

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.

Neşe Taşdemir Önder
Filiz Toprak Esin
Similar Articles
Relevancy Powered by MondaqAI
Herguner Bilgen Ozeke Attorney Partnership
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
Similar Articles
Relevancy Powered by MondaqAI
Herguner Bilgen Ozeke Attorney Partnership
Related Articles
Up-coming Events Search
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
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.


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.


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