Vertical Agreements
"What is the block exemption for vertical agreements in Turkey?"
Quick Answer
Vertical agreements may benefit from the block exemption if the supplier’s market share in the relevant market does not exceed 30%. If the agreement includes an exclusive supply obligation, the buyer’s market share must also not exceed 30%. Certain hardcore restrictions like resale price maintenance are prohibited.
Commercial Law Framework
Vertical agreements are primarily assessed under the Act on the Protection of Competition No. 4054 (especially Article 4), and may benefit from the Block Exemption Communiqué on Vertical Agreements (Communiqué No. 2002/2, as amended).
Key Points to Remember
- Block exemption generally applies if the supplier’s market share does not exceed 30%
- If the agreement includes exclusive supply obligations, the buyer’s market share must also not exceed 30%
- Hardcore restrictions can remove the benefit of the block exemption (e.g., resale price maintenance)
- If market share exceeds the threshold, the Communiqué provides limited transitional periods in certain cases
Business Implementation
Businesses should assess whether their distribution, dealership, franchise, and other vertical arrangements meet the Communiqué’s conditions, and avoid restrictions that can take the agreement outside the block exemption. Where the block exemption does not apply, an individual exemption analysis under Article 5 of Law No. 4054 may be required.
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