The Turkish Competition Board ("Board") has recognized
for the first time that a price parity clause could violate
competition laws. The Board recently issued an administrative
monetary fine to Yemeksepeti, a major online platform for food
orders, for violating Article 6 of the Law on Protection of
Competition No. 4054. The Board held that the exclusionary effects
of Yemeksepeti's Most Favoured Customer Clauses meant the
platform abused its dominant market position. These clauses
discourage restaurants from offering lower prices in any other
online food ordering medium.
The Yemeksepeti decision is a milestone in Turkish competition
law since it is the first time the Board has recognized the
exclusionary effects of Most Favoured Customer Clauses. Such
clauses are effectively price protection mechanisms within supply
contracts. Their overall effect is that the seller cannot offer a
lower price to other customers, without also offering the same
lower price to the contracting customer.
Yemeksepeti is an online platform, enabling customers to make
takeaway food orders from restaurants. The Board concluded that
Yemeksepeti has a dominant position in this market.
The Board's full reasoned decision has not yet been
published. The Board's decision is based on Article 6 of the
Law (abuse of dominance). Generally, issues around Most Favoured
Customer Clauses would arise from their inclusion in an agreement.
Arguably, this would mean that Article 4 of the Law would also be
relevant (competition restricting agreements). The Board's full
reasoning will become clear on publication of the long-form
In the decision, the Board issued an administrative monetary
fine of 427,977 TL, as well as ordered Yemeksepeti to revise its
agreements with restaurants and terminate implementation of any
Most Favoured Customer Clauses.
The Board is also currently investigating Booking.com regarding
similar issues, but has not yet reached a decision (more).
The full text of the Board's short-form decision is
available at this link (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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