On 9 August 2021, the Turkish Competition Board announced via its website that an eight-month investigation of several companies in the small household appliances sector had concluded with a settlement decision. This settlement decision is the first of its kind under the new settlement procedure that the Turkish Competition Authority introduced earlier in 2020.
The Board's announcement reads as follows:
Within the scope of the investigation initiated according to the Competition Board decision dated 07.01.2021 and numbered 21-01/9-M to determine whether Türk Philips Ticaret A.Ş., Dünya Dış Ticaret Ltd. Şti., Melisa Elektrikli ve Elektronik Ev Eşyaları Bilg. Don. İnş. San. Tic. A.Ş., Nit-Set Ev Aletleri Paz. San. ve Tic. Ltd. Şti. and GİPA Dayanıklı Tüketim Mamülleri Tic. A.Ş. violated article 4 of the Act no 4054, as a result of the settlement texts submitted by Türk Philips Ticaret A.Ş., Dünya Dış Ticaret Ltd. Şti., Melisa Elektrikli ve Elektronik Ev Eşyaları Bilg. Don. İnş. San. Tic. A.Ş., Nit-Set Ev Aletleri Paz. San. ve Tic. Ltd. Şti. and GİPA Dayanıklı Tüketim Mamülleri Tic. A.Ş., it was decided that the investigation would be concluded with settlement with respect to each of the parties, as per the decision of the Competition Board dated 21-37/524-258 and numbered 05.08.2021.
As known, the settlement procedure was brought to competition law legislation as a result of the amendments made to article 43, paragraph five of the Act no 4054 on the Protection of Competition according to the Act dated 16.06.2020 and numbered 7246. Within the scope of the settlement procedure, the Board may start the settlement procedure on the request of the parties concerned or on its own initiative taking into account the procedural benefits that may arise from a rapid resolution of the investigation process and the differences in opinion concerning the existence and scope of the infringement, and decide to conclude the investigation.
Within this framework, the decision of the Competition Board concerning the abovementioned undertakings is important since it is the first decision where the settlement procedure is applied.
As highlighted in the announcement, this decision is significant as it is the first time the Board has implemented the settlement procedure provided for in the recent amendment to Law 4054. On 18 March 2021, the Turkish Competition Authority published the Draft Regulation on Settlement Procedure to be Used during Investigations regarding Agreements, Concerted Practices and Decisions Restricting Competition and the Abuses of Dominant Position. The draft regulation also determined that the public consultation process would end on 19 April 2021. On 15 July 2021, the Regulation on Settlement Procedure to be Used during Investigations regarding Agreements, Concerted Practices and Decisions Restricting Competition and the Abuses of Dominant Position was finally published in the Official Gazette.
The Board's handling of the new procedure has been encouraging and is expected to set a precedent for its approach to future settlements.
For further information on this topic please contact Gönenç Gürkaynak at ELIG Gürkaynak Attorneys-at-Law by telephone (+90 212 327 17 24) or email ([email protected]). The ELIG Gürkaynak Attorneys-at-Law website can be accessed at www.elig.com.