The Turkish Competition Board adopts the “Dominance Test” as the substantive test upon which it examines mergers and acquisitions. Mergers and acquisitions which do not create or strengthen a dominant position and do not significantly impede effective competition in a relevant product market within the whole or part of Turkey, would be cleared by the Board (Article 7 of Law on the Protection of Competition No. 4054 (“Competition Law”)).
The Dominance Test is two-prong. The first prong is to determine whether the merger/acquisition would create or strengthen a dominant position in the relevant market. If the first prong is met, the Board should check the second prong. The second prong is to determine whether the merger/acquisition would significantly impede the competition in the whole relevant market or in a substantial part of it.
Please see the Sections titled “Strengthening or Creating Dominant Position” and “Significant Impediment of Effective Competition in Relevant Market” for further information.
The Turkish competition law differentiates from the EU competition law in terms of the substantive merger control test. While the EU competition law adopted the SIEC Test (Significant Impediment of Effective Competition Test) in 2004, the Board still uses the Dominance Test. That being said, there are steps forward to SIEC Test with the Draft Competition Law which is still awaited to be proposed and submitted to the presidency of the Turkish Parliament. Please see the Section titled “Potential Reform” for further information.