The purpose of competition law is to prevent agreements, decisions, and practices that restrict competition in the markets for goods and services, and to prevent abuse of dominant position by undertakings that are dominant in the market.
Turkey’s competition regime is based on the Act No. 4054 on the Protection of Competition (“Competition Act”). Turkish Competition Authority (Rekabet Kurumu) is an autonomous government agency enforcing the Competition Act. The enactment of Turkey’s competition legislation came as a result of Turkey’s Customs Union Agreement with the European Union. The Competition Authority was established as a result of this agreement. The Competition Board is the decision-making body of the Competition Authority. The Customs Union Agreement required Turkey to enact competition rules and regulations aligned with the EU standards. This alignment process is ongoing as Turkey’s accession talks continue. Therefore, it is fair to state that Turkey’s competition regime, for the most part, reflects and is up to date with the EU rules and regulations.
Foreign undertakings doing business in Turkey often need guidance in relation to competition law. This guidance may be in the form of
- assistance to ensure that mergers and acquisitions are finalized without violating competition rules and regulations,
- assistance with the preliminary inquiries, investigations, decisions and practices of the Turkish Competition Authority.
Businesses that fail to comply with competition rules and regulations may be faced with significant fines; therefore, it is of utmost importance for businesses to seek guidance on what the Turkish competition regime involves in more detail.
Especially in company mergers and acquisitions we advice you to avoid possible obstacles.