Two-minute Recap of Turkish Competition Law Developments - July 2024

18 Mergers and Acquisitions Cleared

7 Investigation Launched

6 Investigations Closed

3      No fines imposed after regular procedure

1      No fines imposed with commitments

1      Fines imposed after regular procedure

2      Fines imposed via settlement

Google secures rare win in General Search investigation

A Turkish Competition Authority investigation into Google examined allegations that various search features offered on its desktop and mobile search results page, including “videos”, “people also ask”, “translation box”, “sports box” and “weather box”, pushed websites down in search results page causing them to lose traffic.

The authority held that, while Google enjoys a dominant position in the general search services market, it did not abuse its dominant position. Google is currently undergoing another investigation concerning allegations that it favoured its own products/services in the advertisement technology supply chain where it operates a vertically integrated structure. Further information on the decision can be viewed in English on the RK website.

Koroplast under investigation for resale price maintenance

Koroplast, a well-known Turkish packaging (freezer bags, refuse bags etc), brand is under investigation concerning allegations it fixed its resellers’ prices.

Investigation into electric vehicle charging services

The Competition Board completed its preliminary investigation into exclusivity practices by providers of electric vehicle charging services on the Izmir-Istanbul highway.

The Board found the facts sufficient to launch a fully fledged investigation to decide whether (i) the conduct of two companies involving exclusivity practices violated competition law; and (ii) whether the conduct of one company discriminating between undertakings violated competition law.

THY Opet off the hook

The Competition Board has completed its investigation on whether THY Opet excessively increased the fees related to jet fuel storage and refueling services under the scope of the operation of fuel storage, sale and refueling units located in İstanbul Sabiha Gökçen International Airport. The Board found no violation as a result of the investigation.

Competitive concerns in bottled water sector assuaged

The Competition Board initiated a preliminary investigation to examine whether certain producers/suppliers in the bottled water sector jointly determined prices, ultimately deciding not to initiate a fully fledged investigation.

However, the Board became aware of the possibility of resale price interference in orders from mobile apps and call centers. The board, therefore decided to initiate an additional study concerning the sector.

This resulted in the creation of a new order system allowing dealers to freely determine their prices in orders received via mobile apps, online sales platforms and call centers owned by bottled water producer/supplier brands. In doing so, the amendments required to eliminate competitive concerns were completed.

Violations in automotive sector

(1) The Competition Board ruled that Volta, an electric vehicle brand, violated Turkish competition law by interfering with its resellers’ resale prices imposing an administrative fine of approximately EUR 180,000 (subject to a 25% reduction as a result of the settlement procedure). No fine is issued for customer and territorial restriction allegations, as Volta offered commitments.

(2) Similarly, the Competition Board found that Erba’s resale price maintenance practices violated competition law and imposed a EUR 55,000 million fine on the caravan company (also subject to a 25% reduction as a result of the settlement process)

(3) Another investigation concerned 10 tractor companies and included allegations of:

»  customer and region restriction (8 companies).

»  anti-competitive information exchange (all 10 companies).

»  resale price maintenance by HATTAT only.

All companies accused of customer and region restriction practices offered commitments which were accepted by the Board. All companies were found not guilty of anti-competitive information exchange.

Finally, HATTAT was found to have violated competition law and fined approx. EUR 565,376.