In recent years, resale price maintenance (“RPM”) cases have garnered significant attention in the cosmetics and personal care industry in Türkiye. Following its decisions of 13 April 2023, the Board initiated a number of full-fledged investigations into the activities of various companies in the cosmetics and personal care sector. These investigations focused on allegations related to RPM, internet sales restrictions, and hub-and-spoke arrangements.

On 14 November 2023, the Board concluded these investigations with a combination of settlements and commitments. A total of TRY 108,566,510 (approx. EUR 6.2 million) in fines was imposed on nine companies found to be involved in anti-competitive practices. Notably, all nine companies chose to settle, a route increasingly favoured by undertakings aiming to mitigate the fines imposed and reduce the duration of the investigations. Six of the companies in question also offered commitments, which were deemed sufficient and accepted by the Board. The specifics of such commitments will be outlined in the reasoned decision. The largest fines imposed were as follows:

  • L'Oreal Türkiye faced the most significant penalty, totalling TRY 87,387,007.53 after a settlement discount, for its alleged involvement in both resale price fixing and internet sales restrictions.
  • Ayaz ve Ortakları Ltd. Şti. faced allegations of participating in a hub-and-spoke cartel and was fined approximately TRY 1,083,338.41 after a settlement discount.

The remaining undertakings all faced allegations of price fixing and internet sales restrictions and faced fines as follows:

  • SB Grup Kozmetik Anonim Şirketi faced a fine of approximately TRY 184,675.76.
  • Easyvit Sağlık Ürünleri Sanayi AŞ. faced fines totalling approximately TRY 1,217,437.18.
  • ELCA Kozmetik Limited Şirketi faced fines totalling approximately TRY 7,909,453.64.
  • Farmatek İç ve Dış Tic. AŞ faced fines totalling approximately TRY 2,716,256.69.
  • Glohe Bitkisel Ürünler San. ve Tic. AŞ faced fines totalling approximately TRY 925,805.74.
  • Rebul JCR Kozmetik Pazarlama AŞ faced a fine of approximately TRY 5,357,950.92.
  • Sistem Kozmetik San. ve Tic Ltd. Şti faced fines totalling approximately TRY 1,784,584.28.

The settlement mechanism was introduced in June 2020 and has been applied in more than 25 Board decisions thus far. Notably, the investigations against Seher Gıda Pazarlama Sanayi ve Ticaret A.Ş., a milk and dairy products producer known for its İçim Süt brand, and Letgo Mobil İnternet Servisleri ve Ticaret A.Ş., a second-hand shopping platform, were concluded with settlements on 30 November 2023 and 20 July 2023, respectively. The introduction of the settlement mechanism aimed to streamline the investigation process, reducing time and costs for both the Board and investigated parties. Under this mechanism, the Board may settle with the investigated parties, provided they acknowledge the existence and scope of the violation. As a result, the administrative fine imposed on the investigated parties may be reduced by ten to twenty-five percent.

The unanimous decision to settle of all nine investigated undertakings this time underscores a growing inclination among businesses to avoid costly and lengthy investigation processes, further reinforcing the success of the settlement regime. With the establishment of this system, the Board also gains an instrument to expedite decision-making processes, thereby freeing up more resources to address other cases. In fact, the settlement mechanism significantly reduced the expected investigation duration, bringing it down to seven months from the typical lengthy process that could span up to one and a half years. This increase in efficiency enhances the detection rate and overall effectiveness of its enforcement efforts. Given its recent success, it is clear that the settlement mechanism will remain a useful tool in the TCA's arsenal and an attractive alternative to costly investigations for investigated businesses.

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