Non-Horizontal Concentrations in Turkey

The Guidelines on the Assessment of Non-Horizontal Mergers and Acquisitions (Guidelines) defines merger and acquisition transactions between undertakings operating in different relevant product markets as non-horizontal mergers and acquisitions. Non-horizontal mergers and acquisitions are segmented into two main categories: vertical mergers and conglomerate mergers. Vertical concentrations encompass mergers and acquisitions between undertakings operating at different levels of supply chains, including production, distribution and retail sales.  Conglomerate mergers, on the other hand, concern concentrations between undertakings that are neither in a horizontal nor in a vertical relationship. 

Compared to horizontal mergers, non-horizontal mergers are less likely to raise competition concerns, as they do not lead to the direct elimination or lessening of competition between undertakings operating in the same market. However, under certain circumstances, vertical integration of undertakings in the upstream and downstream markets may also give rise to serious competition problems. Vertical concentrations are generally assessed on the basis of two main theories of harm, namely unilateral and coordinated effects.

Conglomerate mergers relate to concentrations between undertakings in a relationship that is neither horizontal (as competitors operating in the same market) nor vertical (as suppliers and customers). Although conglomerate mergers are considered unlikely to give rise to competition problems compared to vertical or horizontal mergers, in some cases, certain anti-competitive results may emerge out of conglomerate mergers.

For more information on non-horizontal mergers and acquisitions in Turkey, please feel free to reach out to ELIG Gurkaynak at +90 212 327 1724 or through gonenc.gurkaynak@elig.com.