Turkey: Amendments Introduced To Communiqué On Mergers And Acquisitions Calling For Authorization Of The Competition Board (Communiqué No.2010/4)

Last Updated: 2 June 2017
Article by Faruk Aktay

Turkish Competition Authority (the "TCA") introduced certain amendments in relation to Communiqué No. 2010/4 on Mergers and Acquisitions Requiring the Approval of the Competition Board on 24 February 2017.

With the amendments introduced under the new Communiqué No. 2017/2,

  • Article 7(2) of the Communiqué relating to exemption for lack of affected market has been repealed.
  • Article 8(5) of the Communiqué regarding the definition of the scope of "single transactions" has been amended; and
  • A new provision concerning security purchases made in the stock exchange through serial transactions as Article 10(6) has been included in the Communiqué

TCA's Review Requirement of Notification Thresholds Repealed

Initially, the first limb of amendment repealed the mandatory biannual review of the notification thresholds by TCA. As known by the competition practitioners, Turkish Competition Law regime opted for a pre-merger mandatory notification system. In this system, a transaction that meets certain criteria has to be reported to the competition authority before it is consummated and a transaction falling below the criteria will be considered de minimis and thus will not be subject to merger filing. In practice, TCA have reviewed but not revised the notification thresholds regularly in every two years. The last time TCA revised notification thresholds was the end of 2012 with the Communiqué No. 2012/3. The main reason behind this is that TCA prefers the "catching net" created by the notification threshold to be rather wide in order to avoid that a transaction with a potential anti-competitive impact might escape notification thus scrutiny by TCA. Once a merger has received a clearance from TCA, it has almost no authority to review it unlike that of the U.S. Federal Trade Commission ("U.S. FTC") under section 7 of the Clayton Act, which allows the U.S. agencies to revisit mergers with no limitation in time if they can demonstrate that the transaction may have substantially lessened the competition. So the thresholds set forth in Article 7 of the Communiqué No.2010/4 remained as follows:

  • Total turnovers of the transaction parties in Turkey exceed 100 million TL, and turnovers of at least two of the transaction parties in Turkey each exceed 30 million TL, or
  • Global turnover of one of the transaction parties exceeds 500 million TL, and at least one of the remaining transaction parties has turnover in Turkey exceeding 30 million TL

Given that the turnover thresholds have not been revised by TCA over the last four years, it makes sense to strike it out of this Communiqué. As per our conversation with the experts of TCA, the turnover thresholds are not expected to change at least for the rest of this year.

Scope of Serial Transactions Rule Expanded

Secondly, TCA revised the provision in relation to "creeping acquisitions" or "serial transactions". Rules on serial transactions aim to avoid that by structuring a large transaction in smaller deals companies may circumvent merger review. TCA expanded the scope of "serial transactions" for the calculation of notification thresholds. Previously, two or more transactions carried out between the same persons or parties within a period of two years were considered as a single transaction. With the amendment introduced, the time period for calculation has been expanded from two to three years and the same persons or parties has been replaced with "the same persons or parties or by the same undertaking in the same relevant product market". Previously, two year time period was similar to the one adopted under Section 27(6) of the 2002 Enterprise Act. Theoretically speaking the introduction of three year time period will allow TCA to subsequently review more of transactions, which have already been consummated. However, in practice its impact on the workload of TCA would be deemed negligible. We are of the opinion that instead of tweaking this "aggregation model" adopted, introduction of "sectorial method" where serial transactions are used to acquire market power in certain industries e.g. electricity generation market, would be better to combat against anti-competitive creeping acquisitions.

New Rule Introduced in Relation to Acquisition of Control of Listed Companies

Lastly, TCA inserted an additional provision concerning the acquisition of control for stock exchange transactions. Accordingly, the new provision reads that "in case control is acquired as a result of security purchases made from different seller in the stock exchange through serial transactions, the transaction may be notified to the Board after its execution, provided the following conditions are met:

  • The transaction should be notified to the Board without delay; and
  • Voting rights connected to the acquired securities are not exercised, or are only exercised based on an exception to be granted by a Board decision in order to ensure the preservation of the full value of the investments

TCA also reserved the right to introduce terms and obligations on the parties to the transaction in its exception decision in order to ensure effective competition conditions. This provision is similar to the one introduced under Section 801.13 Hart-Scott-Rodino Act of 1976 ("HSR Act") in the US. However, instead of adopting the "size of transaction" and "size of persons" tests under the HSR Act, the TCA put forth a simpler change of control criteria for the implementation of this new rule. Please also note that TCA did not introduce any notification or waiting period requirements for its implementation.

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.

Similar Articles
Relevancy Powered by MondaqAI
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
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