Didim Today

Turkish law concerning economic competition defines an undertaking as follows: “Natural and legal persons who produce, market and sell goods or services in the market, and units that can decide independently and constitute an economic whole.”

The definition of “association of undertakings” is as follows, “Any kind of associations with or without a legal personality that are formed by undertakings to accomplish particular goals.” I would say that this “particular goal” seems to be limiting the competition.

What actions violate competition law?

The law states that “agreements and concerted practices between undertakings, and decisions and practices of associations of undertakings that have as their object or effect or likely effect the prevention, distortion or restriction of competition directly or indirectly in a particular market for goods or services are illegal and prohibited. Such cases are, in particular, as follows:

a) Fixing the purchase or sale price of goods or services, elements such as cost and profit that determine the price, and any terms of purchase or sale,

b) Dividing walls in markets, partitioning goods or services and sharing or controlling all kinds of market resources or elements,

c) Controlling the amount of supply or demand in relation to goods or services, or determining them outside of the market,

d) Complicating and restricting the activities of competing undertakings, or excluding firms operating in the market by boycotts or other behavior, or preventing potential new entrants to the market,

e) Except exclusive dealing, applying different terms to persons with equal status for equal rights, obligations and acts,

f) Contrary to the nature of the agreement or commercial usages, obliging to purchase other goods or services together with a good or service, or tying a good or service demanded by purchasers acting as intermediary undertakings to the condition of displaying another good or service by the purchaser, or putting forward terms as to the resupply of a good or service supplied.

In cases where the existence of an agreement cannot be proved, price changes in the market or the balance of demand and supply, or if operational areas of undertakings are similar to those in markets where competition is prevented, distorted or restricted, constitute a presumption that the undertakings are engaged in concerted practice. Each of the parties may relieve itself of the responsibility by proving they did not engage in concerted practice, provided that the evidence is based on economic and rational facts.

Berk Cektir http://www.berkcektir.av.tr The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner. http://www.todayszaman.com/