Competition Law
"What are the main competition law rules businesses must follow in Turkey?"
Quick Answer
Turkish competition law prohibits anti-competitive agreements (including cartels) and abuse of dominance, and it may require pre-closing notification for certain mergers or acquisitions depending on the applicable thresholds and transaction structure. The Turkish Competition Authority can investigate conduct, conduct on-site inspections, and impose administrative fines.
Commercial Law Framework
Competition law in Turkey is primarily governed by Law No. 4054 on the Protection of Competition and is enforced by the Turkish Competition Authority (Competition Board). The framework covers anti-competitive agreements (cartels and restrictive arrangements), abuse of dominance, and merger control rules that may require pre-closing notification depending on the applicable thresholds and transaction structure.
Key Points to Remember
- Law No. 4054 prohibits anti-competitive agreements and concerted practices (including cartels)
- Abuse of dominance can be sanctioned even without an agreement (e.g., exclusionary or exploitative conduct)
- Certain mergers/acquisitions may require notification and clearance before closing, depending on thresholds
- The Competition Authority can conduct on-site inspections (dawn raids) and impose administrative fines
Business Implementation
For businesses, the main risk areas are competitor communications (pricing/market allocation), restrictive clauses in vertical agreements (resale pricing, exclusivity, MFNs), and conduct that could be viewed as abusive where a company has market power. A basic compliance program typically covers training, contract review, document retention, and a dawn-raid protocol for employees.
Foreign companies should work with local counsel familiar with both Turkish commercial practices and international business standards.
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