Competition Restrictions in Turkey

Article 4 of Law No. 4054 on the Protection of Competition (Law No. 4054) prohibits all agreements between undertakings, decisions by associations of undertakings, and concerted practices that have (or may have) as their object or effect the prevention, restriction or distortion of competition; including any form of agreement that has the “potential” to prevent, restrict or distort competition. The unlawful acts within the meaning of Article 4 of Law No. 4054 should satisfy the following three criteria: (i) there should be two or more entities involved; (ii) there should be concerted practices or agreements between these entities; and finally (iii) these practices or agreements should limit competition, aim to or risk limiting competition.

The term “anti-competitive agreements” refers to horizontal and vertical agreements. In case a vertical agreement restricts competition, the concept that addresses this situation is “vertical restraints”. Similarly, when a horizontal agreement between the competitors restricts competition, we are talking about “horizontal restraints”.

If such restraints stipulated under Article 4 of Law No. 4054 also carry the conditions of the exemption set out under Article 5, such practices will be exempted from the prohibition of Article 4 of Law No. 4054.

For more information on competition restrictions in Turkey, please feel free to reach out to ELIG Gurkaynak at +90 212 327 1724 or through gonenc.gurkaynak@elig.com.