Concerted Practices in Turkey
A concerted practice is a form of coordination which indicates an understanding for the removal of competition between two or more companies without a formal “agreement” or “decision”. The Turkish Competition Authority easily shifts the burden of proof in connection with concerted practice allegations through a mechanism called ‘the presumption of concerted practice’. In practice, if parallel behaviour is established, a concerted practice might readily be inferred and the undertakings concerned might be required to prove that the parallel behaviour is not the result of a concerted practice.
Although the concept of “concerted practices” may come to the agenda in general competition law practice in terms of both rival undertakings and undertakings in a vertical relationship, it is a competition law tool that has been introduced in the face of the difficulties in proving the existence of a cartel and has been largely applied in this field. Accordingly, in the Turkish Competition Board’s jurisprudence, the concept of “concerted practices” is mainly applied to horizontal agreements.
Article 4 of Law No. 4054 on the Protection of Competition prohibits anticompetitive concerted practices and also provides for a presumption of concerted practices. Accordingly, where the existence of an agreement cannot be proven even in cases where the price changes in the market, the balance of supply and demand, or the area of operation of undertakings are such that competition is prevented, distorted or restricted similarity to the markets constitutes a presumption that undertakings are engaged in concerted practices.
For more information on concerted practices in Turkey, please feel free to reach out to ELIG Gurkaynak at +90 212 327 1724 or through gonenc.gurkaynak@elig.com.