Historic Green Light: Tofaş to Acquire Stellantis Turkey with Investment Commitments
The Turkish Competition Board (Board) has approved Tofaş's acquisition of Stellantis's Turkey operations, marking a historic first by tying the clearance to binding investment obligations. This groundbreaking decision introduces a new precedent in Turkish merger control, as stated by the Turkish Competition Authority's (TCA) announcement, emphasizing long-term market effects over traditional static analyses.
The commitments include a robust investment plan from Tofaş to boost production and export capacity, with expected benefits for employment, the automotive industry, and its suppliers. Additionally, measures were adopted to protect competition in distribution and sales, particularly to safeguard consumer choice and prevent the formation of single-brand dealership models.
The Board had initially rejected the first commitment package in October 2024, citing insufficiencies. The revised proposal was accepted after a thorough market consultation, with feedback from competing undertakings and third parties directly influencing the final assessment.
Browser Shake-Up?
In light of ongoing antitrust proceedings against Google in the United States, speculation is mounting over the potential divestiture of Chrome's regional operations — and Yandex is reportedly positioning itself as a candidate to acquire Chrome's business in Turkey.
Alexander Popovskiy, General Manager of Yandex Turkey, stated that while a takeover of Chrome by another major player such as OpenAI, Yahoo, or Perplexity could be a logical market response, it would fall short of addressing the structural issue of market concentration in the browser sector.
Instead, Popovskiy argued that integrating Chrome into Yandex's local digital ecosystem could serve to enhance competitive dynamics within the Turkish market.
Currently, Google Chrome commands an estimated 74% share of the Turkish browser market and approximately 66% globally, underscoring the significant competitive implications of any potential ownership change.
Competition Crackdown in Hatay's Cement and Concrete Market
TCA has fined multiple companies for collusion in the cement and ready-mix concrete markets in Hatay, citing price-fixing and customer allocation. OYAK Çimento, Kadir Soylu, M.M. Tiftik, and Ekintaş Construction settled with the Authority and received fines totalling 110.5 million TL (approx. EUR 2.5 million).
Ceyhan Ready-Mixed Concrete and Filitoğlu Construction were also fined for marketsharing and price-fixing activities. Çimko and KÇS Kahramanmaraş Cement were not fined as the TCA did not find evidence of them being involved in said activities.
Cosmetics Cartel Gets a Fine Brush
Turkey's Competition Authority has finalized its investigation into resale price maintenance (RPM) in the cosmetics sector, imposing 31.4 million TL (EUR 700,000) in fines on Biota Herbal Medicine, Derma Cos Pharmaceutical, and Derma-Cos Cosmetics Import & Export.
The companies admitted to setting resale prices, violating Article 4 of Law No. 4054, and agreed to settle the investigation. This decision concludes the inquiry, which began in January 2023, into five firms suspected of controlling product prices and restricting online sales.
Settlement Brings Fine Reduction
TCA has concluded its investigation through a settlement procedure concerning several undertakings operating in the ready-mixed concrete production and sales market in Keşan, a district of the city, Edirne. The investigation aimed to determine whether the companies had violated competition rules by engaging in practices such as price fixing, market and customer allocation, and exchange of competitively sensitive information. During the course of the investigation, the undertakings applied for settlement, and the Competition Board granted a 25% reduction in the administrative fines. A total administrative fine of approximately 10 million TL (approx. EUR 370,000) was imposed on three companies.
Varta Under Charge: Price Fixing Probe
TCA has launched an investigation into the local subsidiary of Germany-based micro-battery manufacturer Varta, to determine whether it violated Article 4 of the Turkish Competition Act by engaging in practices such as RPM, imposing customer and territorial restrictions, and interfering with online sales.
Smooth Sailing or Rough Waters? Investigation in Maritime Sector
Following its preliminary investigation decision on January 16, 2025, the Turkish Competition Authority has decided to launch an investigation against a total of 6 undertakings in the maritime pilotage and tugboat sector over allegations of anti-competitive agreements.
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.
