Competition Lawyer

Competition law is not an area that concerns only large companies. A territorial restriction in a dealership agreement, a price discussion with competing firms or a supplier setting the resale price can also become the subject of an investigation by the Turkish Competition Authority (Rekabet Kurumu). As a competition lawyer in Mersin, I provide legal support in reviewing whether distribution and dealership agreements comply with the competition rules, in Competition Authority investigations and dawn raids, in merger and acquisition notification processes and in damages claims arising from competition infringements.

What Does a Competition Lawyer Help With?

• Reviewing dealership, distribution and franchise agreements for compliance with the competition rules
• Preparing the defence in Competition Authority investigations and preliminary investigations (önaraştırma)
• Legal support during and after on-site inspections (dawn raids)
• Assessing whether mergers and acquisitions require approval, and the notification process
• Assessing the leniency, commitment and settlement mechanisms
• Annulment actions against decisions of the Competition Board (Rekabet Kurulu)
• Damages claims of businesses harmed by competition infringements
• Competition compliance programmes and training for company employees

Agreements Restricting Competition

Law No. 4054 on the Protection of Competition prohibits agreements and concerted practices between competitors such as price fixing, sharing markets or customers, and limiting production and supply. A written contract is not required; the sharing of sensitive information such as prices, capacity or customers between competitors can also be regarded as an infringement. Discussions at meetings of sector associations and professional bodies are among the settings in which infringements frequently arise.

There are also limits in vertical relationships between a supplier and a buyer. A supplier setting its dealer’s sale price, in other words resale price maintenance, is regarded as a competition infringement. Setting a recommended price or a maximum price, on the other hand, is possible depending on the circumstances.

Competition Rules in Dealership and Distribution Agreements

Vertical agreements can benefit from the block exemption (grup muafiyeti) where they remain below certain market share thresholds and the agreement contains no hardcore restrictions. On the other hand, excessive contractual restrictions on the territories or customers to which the dealer may sell, interference with the sale price and non-compete obligations of indefinite duration can remove the exemption. Under the block exemption, a non-compete obligation should, as a rule, not exceed five years.

Provisions contrary to competition law may be held invalid, and the parties to the agreement may face administrative fines. For this reason, it is important for businesses that set up a dealership network or act as dealers of a brand to review their agreements from this perspective. For the commercial aspects of the agreement, see the dealership, distribution and franchise page.

Abuse of a Dominant Position

Holding a dominant position in a market is not prohibited in itself; what is prohibited is abusing that power. Practices such as preventing competitors from entering the market, applying different conditions to similar customers without a justified reason, making the sale of one product conditional on the purchase of another, and pricing below cost may be regarded as abuse. Small and medium-sized businesses harmed by these practices can file a complaint with the Competition Authority and claim compensation for their losses.

Competition Authority Investigations and On-Site Inspections

The Competition Authority can open a preliminary investigation and an investigation upon a complaint or on its own initiative. Authority case handlers can carry out unannounced on-site inspections at business premises and access documents, e-mails and digital data. Obstructing or hindering an on-site inspection is a separate ground for an administrative fine. For this reason, the business should cooperate during the inspection and keep a record of the scope of the inspection and the copies taken.

If an infringement is established, undertakings can be fined up to ten per cent of their turnover in the previous financial year; separate fines can also be imposed on managers and employees who played a role in the infringement. In cartel cases, undertakings that cooperate can apply for immunity from or a reduction of the fine under the leniency programme. Commitment and settlement mechanisms are also among the options that can be considered during an investigation.

Mergers and Acquisitions

Mergers and acquisitions that exceed certain turnover thresholds require the approval of the Competition Board in order to be legally valid. Transactions carried out without approval can lead both to administrative fines and to problems with the validity of the transaction. If the purchase of a company or business, the creation of a joint venture or a change of control is planned, whether the transaction requires notification should be assessed before the transaction.

Lawsuits Against Competition Board Decisions

Annulment actions can be filed in the administrative courts of Ankara against the final decisions and administrative fines of the Competition Board. Because the time limit for filing is short, the reasoned decision should be reviewed as soon as it is served. The main points of debate in such cases are the market definition, proof of the infringement, the method used to calculate the fine and whether the right of defence was respected.

Damages Arising from Competition Infringements

Businesses harmed by an agreement restricting competition or by abuse of a dominant position can claim compensation for their losses from the infringers. The Law provides that, where the infringement results from the parties’ agreement or their gross negligence, the court may award compensation of up to three times the loss. A Competition Board decision finding an infringement is important evidence in a damages action.

Competition law and unfair competition are different from each other. Competition law aims to protect competition in the market as a whole, while the unfair competition rules govern conduct between two businesses that is contrary to good faith. For situations such as disparagement, creating confusion or enticing away customers, see the unfair competition page.

Competition Law for Businesses in Mersin

In Mersin, port and logistics services, the trade and export of agricultural products, the distribution of fuel and building materials, and sectors that work through dealership networks are among the main areas that require attention from a competition law perspective. Although Competition Authority proceedings are conducted in Ankara, applications, defence submissions and meetings can largely be handled in writing and online, so businesses in Mersin can manage these processes from here. Lawsuits against Competition Board decisions, however, are heard by the administrative courts of Ankara. For general commercial matters, see the commercial law page.

Frequently Asked Questions

Get an Assessment for Competition Law Compliance

To have your dealership agreement reviewed for compliance with the competition rules, to prepare for an investigation or to assess the loss you have suffered, you can reach me through the contact page.