Publications

Turkish Competition Law (Book)

Dr. Gönenç Gürkaynak
1st Edition, November 2021

Dr. Gönenç Gürkaynak illuminates the entirety of Turkish competition law in the first such treatise of its kind, spanning across the historical roots of legislation, policy, and institutions, to substantive aspects, enforcement, and procedure. All components of the law are individually discussed, with extensive references to essential case law that are further enriched by the author’s vast experience in the field. The book provides a comprehensive and in-depth analysis of the competition law regime in Turkey, against the backdrop of the country’s international commitments, as well as recent amendments to the law. The book is an essential guide for practitioners and academics alike, and for all interested in the future of Turkish competition law in a globalized economy. For its comparative analysis and insights, it is of value to the entire competition community.

Turkish Competition Law, written by Dr. Gönenç Gürkaynak, was published by Concurrences on November 24, 2021.

Author Biography
Foreword
Introduction
Acknowledgements
List of Abbreviations
Chapter 1 – An Overview of Competition Law Enforcement
Gönenç Gürkaynak, Esq., Efe Oker
1.1 The Roots and Historical Progression of Turkish Competition Law
1.1.1 Constitutional Basis for Competition Law in Turkey (Article 167)
1.1.2 EU Membership and Shaping the Legislative Framework
1.1.3 Ankara Agreement and EC-Turkey Association Council Decisions
1.1.4 The Introduction of Law No. 4054 and the Founding of the Authority
1.1.5 Summary of Signiicant Changes in Legislation and Competition Policy
1.1.5.1 Law No. 4054 Is Finally Revised
1.1.5.1.1 De Minimis Principle
1.1.5.1.2 Commitment and Settlement Mechanisms
1.1.5.1.3 The SIEC Test
1.1.5.1.4 Behavioural and Structural Remedies
1.1.5.1.5 On-Site Inspections
1.1.5.1.6 Self-Assessment Principle
1.1.5.2 Recent Changes in Secondary Legislation
1.1.5.2.1 Amendments to Communiqué No. 2010/4
1.1.5.2.2 Introduction of Communiqué No. 2017/3
1.1.5.2.3 Amendments to the Guidelines on Vertical Agreements
1.1.5.2.4 Introduction of the Guidelines on Examination of Digital Data
1.1.5.2.5 Introduction of Communiqué No. 2021/2
1.1.5.2.6 Introduction of Communiqué No. 2021/3
1.1.5.2.7 Introduction of the Regulation on Settlement Procedure
1.1.5.3 The Authority’s Competition Policy in Recent Years
1.2 The Institutional Structure of Turkish Competition Law
1.2.1 The Authority
1.2.1.1 Relationships with Other Competition Authorities
1.2.1.2 Other Work: Publications, Conferences, Sector Inquiries
1.2.2 The Board
1.3 Scope of Turkish Competition Law
1.3.1 Legal Scope
1.3.1.1 Legal Scope According to Legislation: What Can the Authority Act on?
1.3.1.2 Competence and Other Relevant Administrative Authorities
1.3.2 Geographic Scope
1.3.2.1 Geographic Scope in Legislation
1.3.2.2 Geographic Scope in Case Law
Chapter 2 – Article 4 and Article 5 of the Competition Law: Basic Principles
Gönenç Gürkaynak, Esq., Fırat Eğrilmez and Aybüke Akdağ
2.1 Undertakings and Associations of Undertakings
2.1.1 The Concept of Undertaking
2.1.1.1 Economic Activity
2.1.1.2 Economic Independence
2.1.1.3 Economic Entity
2.1.1.4 Status of State-Owned Entities
2.1.2 Association of Undertakings
2.2 Agreements, Decisions and Concerted Practices
2.2.1 Agreements
2.2.2 Decisions of Associations of Undertakings
2.2.3 Concerted Practices
2.3 Horizontal and Vertical Agreements
2.4 Inter-Brand and Intra-Brand Competition
2.5 De Minimis Concept
2.6 Concepts of Restriction “By Object” and Restriction “By Effect”
2.6.1 By Object Restrictions and Their Evolution in the Case Law
2.6.2 Economic-Based Approach and Effects-Based Analysis
2.7 Criteria for Individual Exemption
2.7.1 Improving the Production or Distribution of Goods or Promoting Technical or Economic Progress
2.7.2 Consumers Must Beneit From the Eficiency Gains
2.7.3 Should Not Eliminate Competition in a Signiicant Part of the Relevant Market
2.7.4 Should Not Limit Competition More Than What is Necessary
Chapter 3 – Cartels and Tacit Collusion
Gönenç Gürkaynak, Esq., Hilal Özçelik Güldeste and Sinan Haluk Tandoğan
3.1 A General Overview of Restrictive Agreements Regime
3.2 Cartels
3.2.1 Overview of the Cartel Enforcement Regime
3.2.2 Different Variations of Cartel Agreements
3.2.2.1 Price-Fixing
3.2.2.2 Market Sharing
3.2.2.3 Output Restrictions
3.2.2.4 Bid Rigging (Collusive Tendering)
3.2.3 Leniency Applications in Cartel Agreements
3.3 Tacit Collusion
3.3.1 Oligopolistic Interdependency
3.3.2 Presumption of Concerted Practice
Chapter 4 – Other Horizontal Agreements
Gönenç Gürkaynak, Esq., Sinem Uğur and Aydeniz Baytaş
4.1 Cooperation Agreements and their Assessment
4.1.1 Information Exchange
4.1.1.1 Deinition and Scope
4.1.1.2 Assessment under Article 4 of Law No. 4054
4.1.1.3 Assessment Under Article 5 of Law No. 4054
4.1.2 R&D Agreements and Communiqué No. 2016/5
4.1.2.1 Deinition and Scope
4.1.2.2 Communiqué No. 2016/5
4.1.2.3 Determination of Relevant Markets
4.1.2.4 Assessment Under Article 4 of Law No. 4054
4.1.2.5 Assessment Under Article 5 of Law No. 4054
4.1.3 Production Agreements and Communiqué No. 2013/3
4.1.3.1 Deinition and Scope
4.1.3.2 Communiqué No. 2013/3
4.1.3.3 Determination of Relevant Markets
4.1.3.4 Assessment Under Article 4 of Law No. 4054
4.1.3.5 Assessment Under Article 5 of Law No. 4054
4.1.4 Joint Purchasing Agreements
4.1.4.1 Deinition and Scope
4.1.4.2 Determination of Relevant Markets
4.1.4.3 Assessment Under Article 4 of Law No. 4054
4.1.4.4 Assessment Under Article 5 of Law No. 4054
4.1.5 Commercialisation Agreements
4.1.5.1 Deinition and Scope
4.1.5.2 Determination of Relevant Markets
4.1.5.3 Assessment Under Article 4 of Law No. 4054
4.1.5.4 Assessment Under Article 5 of Law No. 4054
4.1.6 Standardisation Agreements
4.1.6.1 Deinition and Scope
4.1.6.2 Assessment Under Article 4 of Law No. 4054
4.1.6.3 Assessment Under Article 5 of Law No. 4054
4.2 Horizontal Agreements in Labour Markets
4.2.1 Labour Markets and Competition Law
4.2.2 No-Poaching Agreements
4.2.3 Wage-Fixing Agreements
Chapter 5 – Vertical Agreements
Gönenç Gürkaynak, Esq., Dilara Ye şilyaprak and Aslı Su Çoruk
5.1 Types of Vertical Restrictions
5.1.1 Resale Price Maintenance
5.1.1.1 Direct Resale Price Maintenance Practices
5.1.1.2 Indirect Resale Price Maintenance Practices
5.1.1.3 By Object Restriction vs. Effects-Based Analysis
5.1.2 Exclusive Distribution
5.1.2.1 Active Sales Bans
5.1.2.1.1 Territorial/Geographical Exclusivity
5.1.2.1.2 Customer Exclusivity
5.1.2.2 Passive Sales Ban
5.1.2.2.1 Export Bans
5.1.2.2.2 Online Sales
5.1.3 Selective Distribution
5.1.4 Single Branding (Non-Compete Obligations)
5.1.5 Obligation to Supply to a Single Buyer
5.1.6 Most-Favoured Nation/Customer Clause
5.1.7 Franchise Agreements
5.1.8 Subcontracting Agreements
5.1.9 Agency Relationship
5.1.10 The Block Exemption Regulation for the Motor Vehicle Sector
5.1.11 The Block Exemption Regulation on Technology Transfer Agreements
Chapter 6 – Concept of Dominance
Gönenç Gürkaynak, Esq., Berfu Akgün and Beyza Timur
6.1 Deinition of Relevant Markets
6.1.1 Product Market Deinition
6.1.1.1 Demand-Side Substitution
6.1.1.2 Supply-Side Substitution
6.1.2 Geographic Market Deinition
6.2 Market Power and Dominant Position
6.2.1 The Initial Step: Market Shares
6.2.2 Entry Barriers
6.2.2.1 Legal Entry Barriers
6.2.2.2 Capital Requirement
6.2.2.3 Excess Capacity
6.2.2.4 Product Differentiation and Customer Loyalty
6.2.2.5 Technology Challenges
6.2.2.6 Vertical Integration and Distribution Channels
6.2.2.7 Timespan for Entry
6.2.2.8 Switching Costs
6.2.2.9 Sunk Costs and Network Effects
6.2.2.10 Economies of Scale and Scope
6.2.3 Countervailing Buying Power
6.3 Collective Dominance
Chapter 7 – Abuse of Dominance – Exclusionary Practices
Gönenç Gürkaynak, Esq., Betül Baş Çömlekçi and Ceren Durak
7.1 Concept of Abuse
7.2 Anti-Competitive Effect
7.3 Objective Justiications and Eficiency Claims
7.4 Exclusionary Practices
7.4.1 Predatory Pricing
7.4.1.1 Concept of Predatory Pricing in Turkish Competition Law
7.4.1.2 Pricing Strategy
7.4.1.3 Intent
7.4.1.4 Possibility for Recoupment
7.4.1.5 Anti-Competitive Effect
7.4.1.6 Objective Justiication
7.4.2 Margin Squeeze
7.4.2.1 Concept of Price/Margin Squeeze in Turkish Competition Law
7.4.2.2 Indispensability
7.4.2.3 Anti-Competitive Effect
7.4.2.4 Objective Justiication
7.4.3 Exclusive Dealing
7.4.3.1 Concept of Exclusive Dealing in Turkish Competition Law
7.4.3.2 Anti-Competitive Effect
7.4.3.3 Objective Justiication
7.4.4 Rebate Systems
7.4.4.1 Concept of Rebate Systems in Turkish Competition Law
7.4.4.2 Single-Product Rebates
7.4.4.3 Package rebates
7.4.5 Tying
7.4.5.1 Concept of Tying in Turkish Competition Law
7.4.5.2 Two Distinct Products
7.4.5.3 Anti-competitive Effect
7.4.5.4 Objective Justiications
7.4.6 Refusal to Deal
7.4.6.1 Concept of Refusal to Deal in Turkish Competition Law
7.4.6.2 Indispensability
7.4.6.3 Anti-Competitive Effect
7.4.6.4 Consumer Harm
7.4.6.5 Objective Justiication
7.4.7 The Relationship Between IP Rights and Article 6
7.4.7.1 Refusal to License
7.4.7.2 Refusal to License and Standard Essential Patents
7.4.7.3 Excessive Pricing
7.4.7.4 Predatory Litigation
7.4.7.5 Discrimination Against Licensees
Chapter 8 – Abuse of Dominance – Exploitative and Discriminatory Practices
Gönenç Gürkaynak, Esq. and Zeynep Ayata Aydoğan
8.1 Exploitative Practices
8.2 Concept of Exploitation and Theory of Harm
8.3 Examples
8.3.1 Excessive Pricing
8.3.1.1 Operating at or near Monopolistic Status Where There Are Barriers to Entry
8.3.1.2 Being Subject to or Complying With the Regulation
8.3.1.3 The Test Applied to Decide Whether the Price Is Excessive
8.3.1.4 Remedies Devised When Abuse Has Been Established
8.3.2 Unfair and Exploitative Contract Terms
8.4 Discriminative Practices
8.5 Concept of Discrimination and Theories of Harm
8.6 Examples
8.6.1 Practices Leading to Primary Line Injury
8.6.2 Practices Leading to Secondary Line Injury
Chapter 9 – Merger Control: Procedural Aspects
Gönenç Gürkaynak, Esq. and İ. Baran Can Yı l dı rı m
9.1 Jurisdictional Issues
9.1.1 Concept of Control
9.1.1.1 Acquisition of Shares or Assets
9.1.1.2 Contracts
9.1.1.3 Other Means of Control
9.1.2 Sole Control
9.1.3 Joint Control
9.1.3.1 Appointment of Senior Management and Determination of Budget
9.1.3.2 Business Plan
9.1.3.3 Investments
9.1.3.4 Market-Speciic Rights
9.1.4 Turnover-Based Thresholds
9.1.4.1 Calculation Methods
9.1.4.2 Instances of Where There are Two or More Transactions Between the Same Parties in the Same Relevant Product Market in the Last Three Years
9.1.4.3 Instances Where Two or More Transactions by the Same Undertaking Are Considered as a Single Transaction
9.1.5 Foreign-to-Foreign Transactions
9.1.6 Exceptions
9.1.7 Failure to Notify
9.1.7.1 Monetary Fines
9.1.7.2 Other Possible Consequences of Failure to Notify
9.2 Types of Concentrations
9.2.1 Mergers
9.2.2 Acquisitions
9.2.3 Joint Ventures
9.2.3.1 Full Functionality
9.2.3.1.1 Suficient Resources to Operate Independently
9.2.3.1.2 Conducting Activities Beyond the One Speciic Function for the Parents
9.2.3.1.3 Independence from the Parent Companies in Sale and Purchase Activities
9.2.3.2 Possible Review Under Articles 4 and 5 of Law No. 4054
9.3 Notiication and Suspension Requirement
9.3.1 Phase I Review
9.3.2 Phase II Review
9.3.3 Suspension Requirement
9.3.4 Consequences of Violation of the Suspension Requirement
9.3.4.1 Monetary Fine
9.3.4.2 Legal Consequences If the Transaction Is Not Approved
9.3.4.3 Carve-Out and Hold-Separate Arrangements
9.3.4.3.1 Prysmian/Draka
9.3.4.3.2 Bekaert/Pirelli
9.3.4.3.3 APMT/Grup Maritim
9.4 Commitments
Chapter 10 – Merger Control: Substantive Aspects
Gönenç Gürkaynak, Esq., İ. Baran Can Yıldırım, LL.M., Buğrahan Köroğlu, LL.M., and Uzay Görkem Yıldız
10.1 Market Deinition for the Substantive Assessment of Concentrations
10.2 Substantive Test
10.2.1 Previously Applied “Dominance” Test
10.2.2 Introduction of the SIEC Test
10.3 The Board’s Review of Horizontal Concentrations
10.3.1 Market Power
10.3.1.1 Market Share and Concentration Levels
10.3.1.2 Countervailing Buyer Power
10.3.1.3 Barriers to Entry
10.3.2 Anti-Competitive Effects
10.3.2.1 Unilateral Effects
10.3.2.2 Coordinated Effects
10.3.3 Eficiencies
10.3.3.1 Beneit to Customers
10.3.3.2 Failing Firm Defence
10.3.3.3 Other Issues to be Considered
10.3.3.3.1 Transaction speciicity
10.3.3.3.2 Veriiability
10.4 Board’s Review of Non-Horizontal Concentrations
10.4.1 The Assessment of Market Power in Non-Horizontal Mergers
10.4.2 Anti-Competitive Effects
10.4.2.1 Vertical Concentrations
10.4.2.1.1 Unilateral Effects
10.4.2.1.1.1 Input Foreclosure
10.4.2.1.1.2 Customer Foreclosure
10.4.2.1.2 Coordinated Effects
10.4.2.2 Conglomerate Concentrations
10.4.2.2.1 Unilateral Effects
10.4.2.2.2 Coordinated Effects
10.5 Remedies and Their Application
10.5.1 General Principles for the Remedies
10.5.2 Structural Remedies
10.5.3 Behavioural Remedies
10.5.4 Board’s Power to Apply Remedies
10.6 Sector-Based Assessment of Concentrations
10.6.1 Cement and Ready-Mixed Concrete
10.6.2 Fast-Moving Consumer Goods
10.6.3 Pharmaceuticals
10.6.4 Telecommunication
10.6.5 Automotive
10.7 Ancillary Restraints
Chapter 11 – Public Enforcement and Procedures
Gönenç Gürkaynak, Esq. and Naz Altınsoy Uçar
11.1 The Authority’s Investigative Powers
11.1.1 Ex oficio proceedings
11.1.2 Information Requests
11.1.3 On-site Inspections
11.1.3.1 Hard Copy Evidence
11.1.3.2 Digital Evidence
11.1.3.3 Personal Devices and Correspondences
11.1.3.4 Employee Statements
11.1.4 Privilege (Limitations)
11.2 Complaints
11.2.1 The Role of the Applicant
11.2.2 The Rights of the Applicant
11.2.2.1 The Rights of the Applicant During the Initiation of an Investigation
11.2.2.2 Rights of the Applicant During the Investigation
11.2.3 Rights of the Complainant After the Final Decision
11.3 Preliminary Investigation
11.4 Investigation
11.4.1 Standard Investigation Procedure
11.4.2 De Minimis Principle
11.4.3 Commitment Procedure
11.4.4 Settlement Procedure
11.5 Oral Hearings
11.5.1 Announcement of the Oral Hearing Meeting and Participants
11.5.2 Meeting Quorum
11.5.3 Publicity of the Hearing
11.5.4 The Oral Hearing Meeting
11.5.5 Submission of Evidence during the Oral Hearing
11.6 Decisions
11.6.1 Meeting and Quorum
11.6.2 Constitutive Elements of Final Decisions
11.7 Leniency Applications
11.7.1 Application Process
11.7.2 Review Process
11.8 Exercise of Defence Rights in the Authority’s Proceedings
11.8.1 Burden of Proof
11.8.2 Right to be Heard
11.8.3 Self-Incrimination
11.8.4 Protection of Trade Secrets
11.8.5 Access to the File
11.9 International cooperation
Chapter 12 – Sanctions and the Termination of Infringements
Gönenç Gürkaynak, Esq., Hakan Demirkan, Esma Aktaş and Uzay Görkem Yıldız
12.1 Principles Regarding Administrative Monetary Fines
12.1.1 Purpose and Scope
12.1.2 Principles Relating to the Determination of Fines
12.1.2.1 Single Continuous Infringement
12.1.2.2 Ne bis in idem
12.1.3 Base Fine
12.1.4 Duration of the Violation
12.1.5 Aggravating Factors
12.1.5.1 Recidivism
12.1.5.2 Maintaining the Cartel After the Notiication of the Investigation Decision
12.1.5.3 Failure to Comply With Commitments
12.1.5.4 Other Aggravating Factors
12.1.6 Mitigating Factors
12.1.6.1 Assisting Examination
12.1.6.2 Encouragement by Public Authorities or Coercion by Other Undertakings
12.1.6.3 Other Mitigating Factors
12.1.7 Draft Regulation on Fines
12.2 Types of Administrative Fines
12.2.1 Fines Imposed on Procedural Violations
12.2.1.1 Providing False or Misleading Information in Exemption and Negative Clearance Notiications as well as Approval Notiications for Mergers and Acquisitions
12.2.1.2 Completing Merger and Acquisitions that are Subject to the Board’s Approval without the Board’s Decision
12.2.1.3 Providing Incomplete, False or Misleading Information or Documents, Failure to Provide on Time or not Providing at all
12.2.1.4 Refusing or Hindering On-site Inspections
12.2.1.5 Failure to Comply With Commitments
12.2.2 Fines on Managers and Employees
12.3 Termination of an Infringement
12.3.1 Opinion Letter under Article 9(3)
12.3.2 Interim Measures
Chapter 13 – Judicial Review
Gönenç Gürkaynak, Esq. and Ali Kağan Uçar
13.1 Nature of the Board’s Decisions
13.1.1 Final Decisions
13.1.2 Interim Decisions
13.2 Action for Annulment
13.2.1 Competent Courts and Court Hierarchy
13.2.2 Parties
13.2.3 Time Limits for Judicial Review Proceedings
13.2.4 Applicable Procedural Rules
13.2.4.1 Applying to Superior Authorities
13.2.4.2 Jurisdiction in Connected Cases
13.2.4.3 Stay of Execution
13.2.5 Grounds for Annulment
13.2.5.1 The “Subject” Element
13.2.5.2 The “Form” Element
13.2.5.3 The “Purpose” Element
13.2.5.4 The “Jurisdiction” Element
13.2.5.5 The “Reason” Element
13.3 Substantive Issues
13.3.1 Individual Exemption
13.3.2 Negative Clearance
13.3.3 Mergers and Acquisitions
13.3.4 No-Go Decision at the End of the Preliminary Investigation Phase
13.3.5 Termination of Infringement
13.3.5.1 Behavioural and Structural Remedies
13.3.5.2 Opinion Letter (Article 9(3) Letter)
13.3.5.3 Interim Measure
13.3.6 Periodic Monetary Fine
13.3.7 Final Decision at the end of the Investigation Phase
13.4 Consequences of an Annulment Decision
Chapter 14 – Private Enforcement
Gönenç Gürkaynak, Esq., Tuğba Uluay, Görkem Yardım and Büşra Kirişçioğlu
14.1 Private Enforcement in General
14.1.1 Legal Nature of Liability Under Competition Law
14.1.2 Types of Breaches and Conditions under the Law No. 4054 for Compensation
14.1.2.1 Compensation for Breaches under Article 4 of the Law. No 4054
14.1.2.2 Compensation of Breaches Under Article 6 of Law No. 4054
14.1.2.3 Compensation of Breaches Under Article 7 of Law No. 4054
14.2 Substantive Conditions for the Claim of Damages
14.2.1 Elements of Compensation
14.2.2 Occurrence and Scope of the Loss
14.2.2.1 Concept of Loss
14.2.2.2 Determination of the Damages
14.2.2.2.1 Calculation of the Loss
14.2.2.2.2 Establishing the Date of the Damage
14.2.2.2.3 Set-off
14.2.2.2.4 Discretion of the Court on the Amount of Losses
14.2.2.3 Determining the Compensation
14.2.2.3.1 The Amount of Compensation
14.2.2.3.2 Compensation by Treble Damages
14.2.2.4 Existence of an Unlawful Act, Causal Connection and Fault
14.2.2.4.1 Existence of an Unlawful Act
14.2.2.4.2 Existence of Causal Connection
14.2.2.4.3 Existence of Fault
14.3 Procedural Issues in the Claim of Damages
14.3.1 Parties to the Claim
14.3.1.1 Defendants
14.3.1.2 Plaintiffs
14.3.2 Competent Court
14.3.3 Statute of Limitations (Time Bars)
14.3.4 Issues on Evidence
14.4 Conlicts between Civil and Administrative Procedures regarding Competition Law Matters
Bibliography

Publications

Turkish Competition Law (Book)

Dr. Gönenç Gürkaynak 1st Edition, November 2021

Table of Contents

Dr. Gönenç Gürkaynak
1st Edition, November 2021