Introduction

Article 54/2 of the Turkish Commercial Code ("TCC") states that any deceptive or other dishonest behaviour and commercial practices affecting the relations between competitors or between suppliers and customers are unfair and unlawful. In the relevant provisions of the TCC, the circumstances under which unfair competition may occur are explained and the legal remedies against unfair competition are mentioned. In this context, the circumstances under which unfair competition may occur are detailed under certain subheadings and it is stated which lawsuits may be filed in case of unfair competition.

Situations Creating Unfair Competition

Article 55 of the TCC regulates the circumstances that constitute unfair competition. However, considering the wording of the said article, the situations listed herein are not exhaustive, and unfair competition may also occur in some situations not listed in this article.

Pursuant to Article 55/1/a of the TCC, advertisements and sales methods contrary to the rule of honesty and other unlawful behaviours constitute unfair competition. The said provision includes some situations that may be considered within this scope. For example, it is stated that behaviours such as disparaging the goods of others with misleading statements, making misleading statements about one's own business relations, or trying to create the impression that one has a talent that one does not possess will be included within this scope.

Pursuant to Article 55/1/b of the TCC, behaviours aimed at breaching and terminating the contract constitute unfair competition. In this provision, some situations that may be considered within this scope are included. In order to be able to conclude contracts with customers in person, it is stated that behaviours such as inducing these persons to act contrary to their contracts with others, providing various benefits to third parties' employees in order to induce them to act contrary to their obligations within the scope of the performance of their work or inducing third parties' employees to disclose business secrets will be included within this scope.

Pursuant to Article 55/1/c of the TCC, unauthorized exploitation of the work products of others constitutes unfair competition. In the aforementioned provision, some situations that may be considered within this scope are mentioned. For example, it is stated that unauthorized exploitation of a work product entrusted to him or exploitation of work products belonging to third parties, which he knows to have been entrusted to him without authorization, will constitute unfair competition.

Pursuant to Article 55/1/d of the TCC, unlawfully disclosing production and business secrets; in particular, evaluating or disclosing to others the information or business secrets of the producer that was unlawfully learned shall constitute unfair competition.

Pursuant to Article 55/1/e of the TCC, failure to comply with the terms of business; in particular, failure to comply with the terms of business that are customary in a profession or environment shall constitute unfair competition.

Pursuant to Article 55/1/f of the TCC, using transaction terms contrary to the rule of good faith also constitutes unfair competition.

Lawsuits That May Be Filed In Relation To Unfair Competition

In the event of unfair competition, it is possible for the persons who are damaged by the unfair competition to file a lawsuit. The persons who may bring these actions and the issues that may be requested in these actions are regulated under Article 56 of the TCC. Pursuant to article 60 of the TCC, these lawsuits must be filed within one year and in any case within three years after the act is learned.

Pursuant to Article 56/1 of the TCC, any person whose customers, credit, professional reputation, commercial activities or other economic interests are damaged or who may face such a danger due to unfair competition may request;

  • Determination of whether the act is unfair or not,
  • Prohibition of unfair competition,
  • The elimination of the situation resulting from the unfair competition, the correction of the statements if the unfair competition has been made with false or misleading statements, and the destruction of the means and goods that are effective in the unfair competition if it is inevitable for the prevention of infringement,
  • Compensation for loss and damage if there is fault and
  • In the presence of the conditions stipulated in Article 58 of the Turkish Code of Obligations, a compensation for non-pecuniary damages.

Pursuant to Article 56/2 of the TCC, customers whose economic interests have been damaged as a result of unfair competition or who may face such a danger may also file the aforementioned lawsuits, but may not request the destruction of the vehicles and goods.

Pursuant to Article 56/3 of the TCC; chambers of commerce and industry, chambers of artisans, stock exchanges and other professional and economic associations authorized to protect the economic interests of their members according to their statutes, as well as non-governmental organizations that protect the economic interests of consumers according to their statutes and public institutions may also file such lawsuits.

Conclusion

Article 54/2 of TCC states that any deceptive or dishonest behaviour or commercial practices affecting the relations between competitors or between suppliers and customers are unfair and unlawful. The relevant provisions of the TCC include, but are not limited to, the conditions under which circumstances unfair competition may occur and the lawsuits that may be filed in case of unfair competition.

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.