Selective Distribution in Turkey

Selective distribution agreements, like exclusive distribution agreements, restrict the number of authorised resellers as well as the possibilities of resale. The difference between selective and exclusive distribution is that the restriction of the number of resellers within the selective distribution system does not depend on the number of territories, but instead depends on the selection criteria based on the nature of the product. Another difference is that the restriction on resale is not a restriction on active selling to a territory but a restriction on any sales to unauthorised resellers, leaving only the appointed resellers and end-users as potential buyers.

Overall, the Guidelines on Vertical Agreements make a distinction between (i) purely qualitative selective distribution systems and (ii) quantitative selective distribution systems. Within the purely qualitative selective distribution systems, the supplier authorises the resellers only on the basis of objective criteria required by the nature of the product, such as training of sales personnel, the service provided at the point of sale, a certain range of products being sold. In this respect, if the following three conditions are met, it is assumed that the purely qualitative selective distribution systems are not restrictive: (i) the nature of the product must necessitate a selective distribution system to preserve its quality and ensure its proper use (a legitimate requirement); (ii) resellers must be chosen on the basis of objective criteria of a qualitative nature which are laid down uniformly for all and made available to all potential resellers and are not applied in a discriminatory manner; and (iii) the criteria laid down should not go beyond what is necessary. On the other hand, the quantitative selective distribution systems add further criteria for selection which rather more directly limits the potential number of dealers by, for instance, requiring minimum or maximum sales, by fixing the number of dealers. Both systems may benefit from block exemption under Block Exemption Communiqué No. 2002/2 on Vertical Agreements (Communiqué No. 2002/2) provided the supplier’s Turkey-specific market share within the preceding calendar year for the relevant product market in which it supplies the contract products or services does not exceed 30% and the agreement does not contain any hard-core restrictions that are listed within Communiqué No. 2002/2.

In a selective distribution system, suppliers can restrict authorized resellers from selling to unauthorized resellers but cannot limit sales between the members of the selective distribution system members (cross-supply). Furthermore, resellers should be free to sell to end-users, including online sales, without restrictions.

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