Law on the Protection of Competition

The purpose of this Law is to prevent agreements, decisions and practices which prevent, distort or restrict competition in markets for goods and services, and the abuse of dominance by undertakings dominant in the market, and to ensure the protection of competition by performing the regulation and supervision necessary for that purpose.

Agreements, practices and decisions which prevent, distort and restrict competition between any undertakings operating in or affecting markets for goods and services within the borders of the Republic of Türkiye, the abuse of dominance by undertakings dominant in the market, and all kinds of legal transactions and conduct having the nature of mergers and acquisitions which would significantly lessen competition, as well as transactions concerning the measures, findings, regulation and supervision aimed at the protection of competition, fall within the scope of this Law.

In the implementation of this Law;

Ministry: Amended: 24/10/2011, Decree-Law No. 661, Art. 53 means the Ministry of Trade,

Competition: means the contest between undertakings in markets for goods and services which enables them to take economic decisions freely,

Dominant Position: means the power of one or more undertakings in a particular market to determine economic parameters such as price, supply, and the amount of production and distribution, by acting independently of their competitors and customers,

Undertaking: means natural and legal persons who produce, market or sell goods or services in the market, and units which can take independent decisions and constitute an economic whole,

Association of Undertakings: means any kind of association, with or without legal personality, formed by undertakings to attain specific objectives,

Goods: means all kinds of movable and immovable property which are the subject of trade,

Services: means physical or intellectual activities, or both together, performed in return for a consideration or benefit,

Authority: means the Competition Authority,

Board: means the Competition Board,

as defined above.

Agreements between undertakings, concerted practices, and decisions and practices of associations of undertakings which have as their object or effect, or are likely to have as their effect, the prevention, distortion or restriction of competition directly or indirectly in a particular market for goods or services are unlawful and prohibited.

Such cases are, in particular, the following:

a) Fixing the purchase or sale price of goods or services, elements constituting the price such as cost and profit, and any purchase or sale conditions,

b) Partitioning markets for goods or services, and sharing or controlling all kinds of market resources or elements,

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

d) Making the activities of competing undertakings difficult or restricting them, or excluding undertakings operating in the market by boycott or other conduct, or preventing potential new entrants to the market,

e) Except for exclusive dealing, applying different conditions to persons in equal positions for equal rights, obligations and performances,

f) Contrary to the nature of the agreement or to commercial usage, obliging the purchase of other goods or services together with a good or service, or making a good or service demanded by purchasers acting as intermediary undertakings conditional upon the display by the purchaser of other goods or services, or putting forward conditions concerning the resupply of a good or service supplied,

In cases where the existence of an agreement cannot be proved, the similarity of price changes in the market, or of the balance of supply and demand, or of the regions of activity of undertakings, to those in markets where competition is prevented, distorted or restricted, constitutes a presumption that the undertakings are engaged in a concerted practice.

Each of the parties may relieve itself of responsibility by proving that it has not engaged in a concerted practice, provided that this is based on economic and rational facts.

Amended paragraph one: 16/6/2020, Law No. 7246, Art. 1 Agreements between undertakings, concerted practices and decisions of associations of undertakings are exempted from the application of the provisions of Article 4 where all of the following conditions are present:

a) Ensuring new developments and improvements, or economic or technical development, in the production or distribution of goods and in the provision of services,

b) Consumers benefiting therefrom,

c) Competition not being eliminated in a significant part of the relevant market,

d) Competition not being restricted more than is compulsory for achieving the objectives in subparagraphs (a) and (b).

Added paragraph two: 16/6/2020, Law No. 7246, Art. 1 The undertakings or associations of undertakings concerned may apply to the Authority for a determination by the Board that the agreement, concerted practice or decision of an association of undertakings within the scope of Article 4 satisfies the conditions for exemption.

Amended paragraph: 2/7/2005, Law No. 5388, Art. 1 An exemption may be granted for a specific period, and the granting of an exemption may be made subject to the fulfilment of certain conditions and/or certain obligations. Exemption decisions shall be valid from the date on which the agreement or concerted practice was made or the decision of the association of undertakings was taken or, if made subject to a condition, from the date on which the condition was fulfilled.

The Board may, where the conditions set out in paragraph one are met, issue communiqués granting a block exemption to types of agreements in specific fields and setting out the conditions thereof.

The abuse by one or more undertakings, on their own or through agreements with others or through concerted conduct, of their dominant position in a market for goods or services within the whole or a part of the country is unlawful and prohibited.

Abusive cases are, in particular, the following:

a) Acts aimed at directly or indirectly preventing another undertaking from entering the area of commercial activity, or at making the activities of competitors in the market difficult,

b) Directly or indirectly discriminating by putting forward different conditions to purchasers in equal positions for the same and equal rights, obligations and performances,

c) Making the purchase of other goods or services together with a good or service, or making a good or service demanded by purchasers acting as intermediary undertakings conditional upon the display by the purchaser of other goods or services, or imposing restrictions concerning the terms of purchase and sale in the case of resale, such as not selling a purchased good below a particular price,

d) Acts aimed at distorting the conditions of competition in another market for goods or services by exploiting the financial, technological and commercial advantages created by dominance in a particular market,

e) Restricting production, marketing or technical development to the prejudice of consumers.

Amended paragraph one: 16/6/2020, Law No. 7246, Art. 2 The merger of one or more undertakings, or the acquisition by any undertaking or person of all or part of the assets or partnership shares of another undertaking, or of instruments conferring upon it the power to hold rights in management, except for acquisition by way of inheritance, in such a manner as to result in significantly lessening effective competition in any market for goods or services within the whole or a part of the country, in particular by creating a dominant position or strengthening an existing dominant position, is unlawful and prohibited.

The Board shall announce, by the communiqués it shall issue, which types of mergers and acquisitions must be notified to the Board and authorised in order to acquire legal validity.

Upon the application of the undertakings or associations of undertakings concerned, the Board may, within the framework of the information in its possession, issue a negative clearance certificate indicating that an agreement, decision, practice, or merger and acquisition is not contrary to Articles 4, 6 and 7 of this Law.

After issuing this certificate, the Board may at any time revoke its opinion within the framework of the conditions in Article 13. However, in this case, no penal sanction shall be applied to the parties for the period until the Board changes its opinion.

Amended paragraph one: 16/6/2020, Law No. 7246, Art. 3 If the Board, upon a notice, a complaint or the request of the Ministry, or ex officio, finds that Article 4, 6 or 7 of this Law has been infringed, it shall notify the undertakings or associations of undertakings concerned, in its final decision, of the behaviour to be performed or avoided in order to establish competition, and of structural remedies in the form of the transfer of certain activities, partnership shares or assets of the undertakings. Behavioural and structural remedies must be proportionate to the infringement and necessary to bring the infringement effectively to an end. Structural remedies shall be resorted to only where behavioural remedies previously imposed have not produced results. Where it is determined by a final decision that behavioural remedies have not produced results, the undertakings or associations of undertakings concerned shall be given a period of at least 6 months to comply with the structural remedy.

Natural and legal persons having a legitimate interest may file a complaint.

Before taking a decision under paragraph one, the Board shall notify in writing to the undertakings or associations of undertakings concerned its opinion on how they are to bring the infringement to an end.

In cases where serious and irreparable damage is likely to arise until the final decision, the Board may take interim measures which preserve the situation prior to the infringement and do not exceed the scope of the final decision.

Repealed paragraph one: 2/7/2005, Law No. 5388, Art. 2

Within fifteen days from the date on which merger or acquisition agreements falling within the scope of Article 7 are notified to the Board, the Board shall, as a result of its preliminary examination, either authorise the merger or acquisition transaction or, if it decides to take the transaction into final examination, duly serve on the persons concerned, together with its letter notifying its preliminary objection and other measures it deems necessary, notice that the merger or acquisition transaction is suspended until the final decision and may not be put into effect. In this case, the provisions of Articles 40 to 59 of this Law shall apply.

In cases where the Board does not respond in any way to the application concerning the merger or acquisition, or takes no action, within the time limit, the merger or acquisition agreements shall enter into force and acquire legal validity 30 days after the date of notification.

In cases where a merger or acquisition transaction subject to compulsory notification has not been notified to the Board, the Board shall, whenever it becomes aware of the transaction in any manner, take the merger or acquisition into examination on its own initiative. As a result of the examination;

a) If it decides that the merger or acquisition does not fall within the scope of paragraph one of Article 7, it shall authorise the merger or acquisition, but shall impose a fine on the persons concerned for failure to notify.

b) If it decides that the merger or acquisition falls within the scope of paragraph one of Article 7, it shall decide, together with a fine, on the termination of the merger or acquisition transaction; the elimination of all de facto situations unlawfully brought about; the return, if possible, of all kinds of shares or assets seized to their former owners or, if this is not possible, their assignment and transfer to third parties, under conditions and within a time limit to be determined by the Board; that the acquiring persons may in no way participate in the management of the acquired undertakings during the period until these are assigned to the former owners or third parties; and the taking of other measures it deems necessary.

The notification shall contain, fully and completely, the information required by the Notification Forms to be prepared by the Board. The notification may be made by any of the parties. The notifying party is obliged to inform the other party concerned of the situation. The relevant documents shall be attached to the notification, and the notification shall be deemed to have been made on the date on which it is entered into the records of the Board.

In the following cases, exemption and negative clearance decisions may be revoked, or certain conduct of the parties may be prohibited:

a) A change in any of the facts forming the basis of the decision,

b) Failure to fulfil the conditions or obligations to which the decision is subject,

c) The decision having been taken on the basis of false or incomplete information regarding the agreement in question.

The revocation decision shall be valid, in the case of subparagraph (a), from the date of the change and, in other cases, from the date on which the exemption or negative clearance decision was given.

Where the falsehood or incompleteness specified in subparagraph (c) has occurred through the fraud or intent of the undertaking concerned, the decision shall be deemed never to have been taken.

In carrying out the duties assigned to it by this Law, the Board may request any information it deems necessary from all public institutions and organisations, undertakings and associations of undertakings.

The officials of these authorities, undertakings and associations of undertakings are obliged to provide the requested information within the time limit to be determined by the Board.

In carrying out the duties assigned to it by this Law, the Board may, in cases it deems necessary, conduct examinations at undertakings and associations of undertakings. For this purpose, it may, with respect to undertakings or associations of undertakings:

a) Amended: 16/6/2020, Law No. 7246, Art. 4 examine their books and all kinds of data and documents kept in physical and electronic media and in information systems, and take copies and physical samples thereof,

b) request written or oral explanations on specific matters,

c) conduct on-site examinations concerning any assets of undertakings.

The examination shall be carried out by experts working under the Board. When going to an examination, the experts shall carry with them an authorisation certificate indicating the subject and purpose of the examination and that an administrative fine will be imposed in case of provision of false information.

Added paragraph: 1/8/2003, Law No. 4971, Art. 25 The persons concerned are obliged to provide copies of the requested information, documents, books and other instruments. Where the on-site examination is obstructed or there is a likelihood of it being obstructed, the on-site examination shall be carried out by decision of the criminal judgeship of peace.

Amended: 23/1/2008, Law No. 5728, Art. 472

The Board shall, in respect of natural and legal persons having the nature of an undertaking, associations of undertakings or members of such associations, in the following cases:

a) Provision of false or misleading information or documents in applications for exemption and negative clearance, and in applications for authorisation of mergers and acquisitions,

b) Realisation of mergers and acquisitions subject to authorisation without the authorisation of the Board,

c) Provision of incomplete, false or misleading information or documents in the implementation of Articles 14 and 15 of the Law, or failure to provide information or documents within the specified time limit or at all,

d) Obstruction or hindering of the on-site examination,

impose an administrative fine, for those specified in subparagraphs (a), (b) and (c), at the rate of one per thousand, and for those specified in subparagraph (d), at the rate of five per thousand, of the annual gross revenues of the undertakings, associations of undertakings or members of such associations generated at the end of the financial year preceding the decision or, if this is not possible to calculate, at the end of the financial year closest to the date of the decision, as determined by the Board. However, the fine to be determined on this basis may not be less than ten thousand Turkish Liras. The administrative fine under subparagraph (b) of this paragraph shall be imposed on each of the parties in mergers, and only on the acquirer in acquisitions.

The carrying out of the on-site examination by court decision shall not prevent the application of the administrative fine provided for in this Law in respect of the obstruction and hindering of the on-site examination.

Those who engage in conduct prohibited under Articles 4, 6 and 7 of this Law shall be imposed an administrative fine of up to ten per cent of the annual gross revenues of the undertakings, associations of undertakings or members of such associations to be fined, generated at the end of the financial year preceding the final decision or, if this is not possible to calculate, at the end of the financial year closest to the date of the final decision, as determined by the Board.

Where the administrative fines specified in paragraph three are imposed on undertakings or associations of undertakings, the managers or employees of the undertaking or association of undertakings found to have had a decisive influence in the infringement shall be imposed an administrative fine of up to five per cent of the fine imposed on the undertaking or association of undertakings.

In deciding on an administrative fine under paragraph three, the Board shall, in the context of paragraph two of Article 17 of the Misdemeanours Law No. 5326 dated 30/3/2005, take into account matters such as the recurrence and duration of the infringement, the market power of the undertakings or associations of undertakings, their decisive influence in the realisation of the infringement, whether they comply with the commitments given, whether they assist the examination, and the severity of the damage occurred or likely to occur.

Undertakings or associations of undertakings, or their managers and employees, which actively cooperate with the Authority for the purpose of revealing infringements of the Law may, taking into account the nature, effectiveness and timing of the cooperation and with the grounds clearly stated, not be imposed the fines specified in paragraphs three and four, or a reduction may be made in the fines to be imposed under those paragraphs.

The matters taken into account in determining the administrative fines to be imposed under this Article, the conditions for immunity from or reduction of fines in case of cooperation, and the procedures and principles concerning cooperation shall be determined by regulations to be issued by the Board.

Amended: 23/1/2008, Law No. 5728, Art. 473

The Board shall, without prejudice to the fines specified in paragraph one of Article 16, in respect of undertakings and associations of undertakings, in the event of:

a) Failure to comply with obligations imposed or commitments given by a final decision or an interim measure decision,

b) Obstruction or hindering of the on-site examination,

c) Failure to provide requested information or documents within the specified time limit in the implementation of Articles 14 and 15 of the Law,

impose, for each day, an administrative fine at the rate of five per ten thousand of the annual gross revenues of the undertakings, associations of undertakings and/or members of such associations concerned, generated at the end of the financial year preceding the decision or, if this is not possible to calculate, at the end of the financial year closest to the date of the decision, as determined by the Board.

Administrative fines under subparagraphs (a) and (c) of paragraph one may be imposed from the expiry of the period specified for compliance with the obligations in the decisions referred to in those subparagraphs. The administrative fine relating to the act in subparagraph (a) may, if no period has been specified in the decision imposing the obligation, be imposed from the day following the service of that decision. The administrative fine relating to the acts in subparagraph (b), however, may be imposed from the day following the day on which the act occurred.

Repealed: 23/1/2008, Law No. 5728, Art. 578

Repealed: 23/1/2008, Law No. 5728, Art. 578

The Competition Authority, having public legal personality and administrative and financial autonomy, has been established in order to ensure the formation and development of markets for goods and services in a free and sound competitive environment, to monitor the implementation of this Law, and to perform the duties assigned to it by the Law.

The Ministry to which the Authority is related is the Ministry of Trade.

The Authority is independent in the performance of its duties. No organ, authority, body or person may give orders or instructions for the purpose of influencing the final decision of the Authority.

The headquarters of the Authority is in Ankara.

The organisation of the Authority consists of;

a) the Competition Board,

b) the Presidency,

c) the Service Units,

as listed above.

Amended: 2/7/2018, Decree-Law No. 703, Art. 167 Annulled by Constitutional Court decision of 7/12/2023, E. 2018/117, K. 2023/212 Re-enacted: 29/5/2025, Law No. 7549, Art. 22 The Board is the decision-making organ of the Authority and consists of a total of seven members appointed by the President of the Republic, one of whom shall be the President and one the Vice-President.

Amended: 2/7/2018, Decree-Law No. 703, Art. 167 Annulled by Constitutional Court decision of 7/12/2023, E. 2018/117, K. 2023/212 Re-enacted: 29/5/2025, Law No. 7549, Art. 23 The members of the Board shall be selected from among persons who have completed at least four years of higher education and who meet the requirements set out in sub-items (1), (4), (5), (6) and (7) of item (A) of paragraph 1 of Article 48 of Civil Servants Law No. 657.

Sentences one to four repealed: 2/7/2018, Decree-Law No. 703, Art. 167 Where the office of the President or of a member becomes vacant for any reason before the expiry of the term of office, other than by renewal, an election and appointment shall be made to the vacant position within one month. In that case, the person appointed shall complete the term of the person whom he or she replaces.

The President and members of the Board may not be dismissed for any reason before the expiry of their terms of office. However, the duties of the President and members of the Board who are found to have lost the requirements necessary for their appointment or whose situation is found to be contrary to Article 25 of this Law, or whose commission of an offence in connection with the duties conferred by Law is established by a court decision, shall terminate by a decision of the Board.

The President and members of the Board may not, unless based on a special law, assume any public or private office, engage in commerce, or be shareholders in partnerships.

Before taking office, the President and members of the Board shall dispose of all securities within the meaning of capital markets legislation owned by them, other than securities relating to borrowing issued by the Treasury, by selling or transferring them to persons other than their blood relatives up to the third degree and relatives by marriage up to the second degree. Members who fail to comply with this provision within 30 days shall be deemed to have resigned from membership.

Offices held in associations and foundations whose purpose is directed at social assistance and educational activities, and membership in non-profit cooperatives, are outside the scope of this provision.

The members and personnel of the Board may not, even after leaving office, disclose confidential information relating to the Authority or the trade secrets of undertakings and associations of undertakings which they have learned in the course of applying this Law, nor may they use them for their own benefit or for the benefit of others.

Added fifth paragraph: 18/7/2021, Law No. 7333, Art. 12 For a period of two years from the termination of their membership, the President and members of the Board may not take office in legal persons operating in the sectors that were the subject of investigations conducted under this Law within the two years preceding the date on which they left office, and may not represent natural and legal persons of that nature before the Authority in administrative proceedings relating to the application of this Law.

Added sixth paragraph: 18/7/2021, Law No. 7333, Art. 12 Professional personnel assigned as rapporteurs in an investigation within the two years preceding the date on which they left office, and, within that period, the head of department responsible for supervising such personnel pursuant to Article 43, the relevant deputy head of department and the Vice President, may not, for a period of two years from their leaving the Authority, take office in legal persons operating in the sectors that were the subject of the relevant investigations, and may not represent natural and legal persons of that nature before the Authority in administrative proceedings relating to the application of this Law.

Added seventh paragraph: 18/7/2021, Law No. 7333, Art. 12 Persons who act contrary to the fifth and sixth paragraphs shall be subject to the penalty specified in Article 4 of Law No. 2531 dated 2/10/1981 on Activities Prohibited for Persons Leaving Public Office.

The members of the Competition Board shall take an oath before the First Presidency Board of the Court of Cassation that, throughout their term of office, they will carry out the affairs of the Board with full care and integrity and will not act, nor cause others to act, contrary to the provisions of the Law.

The application made for the taking of the oath shall be treated by the Court of Cassation as urgent business. The President and members of the Board may not take office unless they have taken the oath.

The duties and powers of the Board are as follows:

a) To carry out examinations, inquiries and investigations, upon application or ex officio, concerning the activities and legal transactions prohibited by this Law; upon establishing that the provisions of this Law have been infringed, to take the measures necessary to terminate such infringements and to impose administrative fines on those responsible,

b) To evaluate the requests of the parties concerned for exemption and negative clearance, and to grant exemption and negative clearance certificates to appropriate agreements,

c) To continuously monitor the markets to which the exemption decisions and negative clearance certificates granted relate, and, where changes are detected in those markets or in the situation of the parties, to re-evaluate the applications of the parties concerned,

d) To authorise mergers and acquisitions,

e) Amended: 24/10/2011, Decree-Law No. 661, Art. 55 To appoint the Vice Presidents and the Chief Legal Counsel upon the proposal of the President,

f) To issue communiqués and to make the necessary arrangements in connection with the application of this Law,

g) To give opinions, directly or upon the request of the Ministry, on amendments required to be made to legislation relating to competition law,

h) To monitor the legislation, practices, policies and measures of other countries relating to agreements and decisions restricting competition,

ı) To determine the personnel policy of the Authority, to monitor its implementation, to carry out appointment procedures for personnel, to approve the annual budget, the final account of revenues and expenditures and the annual work programmes of the Authority prepared by the Presidency, and, where necessary, to decide on transfers between accounts within the budget,

j) Repealed: 24/10/2011, Decree-Law No. 661, Art. 55

k) To publish, once a year, a report on its activities and on the situation and developments in its fields of responsibility,

l) To discuss and decide on proposals concerning purchases, sales and leases, such as the acquisition of movable and immovable property and fixtures, and to make the necessary arrangements in this regard,

m) To decide on all kinds of transactions concerning the receivables, rights and debts of the Authority vis-a-vis third parties,

n) To perform the other duties conferred by Law.

The Board shall be managed and represented by the President and, in cases of leave, illness, travel and other circumstances where the President is absent, by the Second President.

The meeting shall be chaired by the President of the Board or, in his or her absence, by the Second President, who shall determine the agenda to be decided upon before the meeting and notify it to the members of the Board.

Members of the Board may not participate in deliberations and voting on matters concerning themselves or their blood relatives up to the third degree and relatives by marriage up to the second degree.

The Presidency is composed of the President of the Board, the Second President and the Vice Presidents of the Board.

The President of the Board is the highest superior of the Authority and is responsible for the general management and representation of the Authority.

This responsibility covers the duties and powers of organising, supervising and evaluating the work of the Authority within a general framework and, where necessary, announcing it to the public.

The duties and powers of the Presidency are as follows:

a) To ensure, at the highest level, the organisation and coordination of the harmonious, efficient, disciplined and orderly functioning of the Competition Board, which is the decision-making body of the Authority, and of the service units, and to resolve disputes of duty and authority that may arise between the service units of the Authority,

b) To determine the agenda, date and time of the meetings of the Board and to conduct the meetings,

c) To ensure that the decisions of the Board are carried out and to monitor the implementation of those decisions,

d) To finalise the proposals received from the service units and submit them to the Board,

e) To prepare the annual budget, the final account of revenues and expenditures and the annual activity reports of the Authority and submit them to the Board, and to ensure the implementation of the budget of the Authority, the collection of its revenues and the making of its expenditures,

f) To give opinions on decisions to be taken concerning competition policy and on the relevant legislation,

g) To regulate and conduct the relations of the Authority with the Ministry and other bodies,

h) To represent the Authority before public and private bodies,

ı) To ensure the publication of the final decisions of the Board and of the communiqués and regulations to be prepared by the Authority,

j) To determine the duties and areas of authority of personnel authorised to sign on behalf of the President of the Board.

k) Added: 24/10/2011, Decree-Law No. 661, Art. 56 To appoint the personnel of the Authority, other than the Vice Presidents and the Chief Legal Counsel.

Three Vice Presidents may be assigned to assist the President in carrying out the services of the Presidency. The Vice Presidents shall be obliged to perform the duties assigned by the President, to carry out instructions, and to ensure harmony and cooperation between the organisational levels and the relevant service units.

The service units of the Competition Authority consist of main service units organised in the form of Departments, advisory units and auxiliary service units.

The accounts of the Authority are subject to audit by the Court of Accounts.

Amended sentence: 16/6/2020, Law No. 7246, Art. 6 The positions of personnel performing the core and permanent duties required by the services of the Authority are shown in the annexed Schedule (I). A sufficient number of expert professional personnel and non-career specialist personnel may be employed under the Authority.

The personnel of the Authority are subject to Civil Servants Law No. 657, except with respect to salary and financial rights. Second and third sentences annulled by Constitutional Court decision of 6/6/2013, E. 2013/47, K. 2013/72.

Added paragraph: 16/6/2020, Law No. 7246, Art. 6 Paragraph annulled by Constitutional Court decision of 9/11/2022, E. 2020/67, K. 2022/139 Re-enacted: 23/5/2024, Law No. 7511, Art. 3 Provided that the total number of positions in Schedule (I) annexed to this Law is not exceeded, and limited to the position titles in that schedule and the position titles in the schedules annexed to the legislation on positions and posts, changes of grade in occupied positions and changes of class, title and grade in vacant positions shall be made by decision of the Board.

Services of a temporary nature or requiring particular expertise shall be determined by the Presidency. The provisions on contracts of agency or contracts for work shall apply to personnel to be employed in such work. The pensions received from social security institutions by persons to be employed under this paragraph shall not be suspended.

Foreign experts may also be employed in accordance with the principles of a regulation to be prepared by the Presidency and put into force with the approval of the Board.

The following qualifications are required for appointment as assistant competition expert:

a) Amended: 2/7/2005, Law No. 5388, Art. 4 To be a graduate of at least four years of higher education from faculties of law, economics, political science, business administration, or economic and administrative sciences, or from departments of business engineering or industrial engineering, or to be a graduate of foreign higher education institutions whose equivalence to these has been recognised,

b) Amended: 2/7/2005, Law No. 5388, Art. 4 To succeed in the examination to be held jointly or separately for the branches listed in the preceding subparagraph,

c) To succeed in a foreign language examination to be held in one of the English, French or German languages,

d) Not to have reached the age of thirty as of the first day of January of the year in which the examination is held.

Other necessary requirements shall be determined in the examination regulation to be issued by the Board.

Paragraph repealed: 16/6/2020, Law No. 7246, Art. 7

Chief competition experts, competition experts and assistant competition experts hold the status and authority of professional personnel.

Added paragraph: 16/6/2020, Law No. 7246, Art. 7 Upon their appointment as competition experts, assistant competition experts shall benefit, in accordance with the same procedures and principles, from grade promotion under item (11) of paragraph (A) of the "Common Provisions" section of Article 36 of Civil Servants Law No. 657 dated 14/7/1965.

The monthly salaries of the President and members of the Board shall be determined by the President of the Republic, provided that they do not exceed twice the salary, including all kinds of payments, of the highest-ranking civil servant. Payments made to the highest-ranking civil servant which are not subject to income tax shall likewise not be subject to Income Tax under this Law.

The salaries and other financial rights of the personnel of the Authority shall be determined by the Board upon the proposal of the Presidency, within the framework of the salaries in the first paragraph and the principles relating to changes therein.

The President and members of the Board and the other personnel are subject to the Retirement Fund Law. Persons subject to Civil Servants Law No. 657 who are appointed as President or members of the Board, and those who take office in the Authority, shall, upon the expiry of their terms of office, return to the civil service and be appointed to a post appropriate to their situation. In that case, the periods spent in the Authority shall be taken into account in their service in accordance with the provisions of the law to which they are subject.

These provisions shall also apply to the president, members, experts or other personnel coming from universities, without prejudice to the requirements necessary for obtaining academic titles.

For retirement purposes, the President of the Board shall be deemed equivalent to the President of Strategy and Budget of the Presidency of the Republic, the members of the Board to Directors General of Ministries, and Heads of Department to Directors General of Ministries. For retirement purposes, the situation of the other personnel shall be set out in a regulation to be prepared by the Presidency and put into force with the approval of the Board.

The revenues of the Authority constitute the budget of the Authority and consist of the following items of revenue:

a) The appropriation to be placed in the budget of the Ministry,

b) Repealed: 1/8/2003, Law No. 4971, Art. 25

c) Added: 17/9/2004, Law No. 5234, Art. 29 Payments to be made at the rate of four per ten thousand of the capital of all newly established partnerships having the status of joint-stock company or limited liability company and, in the case of a capital increase, of the increased portion,

d) Publication and other revenues.

The revenues of the Authority shall be collected in an account to be opened with the Central Bank of the Republic of Türkiye or a state bank. Last sentence repealed: 1/8/2003, Law No. 4971, Art. 25

The Board shall decide, ex officio or upon applications referred to it, either to open an investigation directly or to conduct a preliminary inquiry in order to determine whether it is necessary to open an investigation.

Where it is decided to conduct a preliminary inquiry, the President of the Board shall assign one or more of the experts who are professional personnel as rapporteurs.

The rapporteur assigned to conduct the preliminary inquiry shall notify the Board in writing, within 30 days, of the information obtained, all kinds of evidence and his or her opinion on the matter.

Within 10 days following the submission of the preliminary inquiry report to the Board, the Board shall convene to evaluate the information obtained and take a decision, and shall decide whether or not to open an investigation.

Added paragraph: 16/6/2020, Law No. 7246, Art. 8 On the basis of criteria such as market share and turnover, the Board may decide not to make the subject of an investigation agreements, concerted practices and decisions and practices of associations of undertakings which do not significantly restrict competition in the market, with the exception of clear and serious infringements such as price fixing between competitors, allocation of regions or customers, and restriction of the quantity of supply. The procedures and principles concerning the application of this paragraph shall be determined by a communiqué issued by the Board.

Where the Board finds the allegations put forward in denunciations or complaints to be serious and sufficient, the persons making the denunciation or complaint shall be notified in writing that the allegations put forward have been found serious and that an inquiry has been initiated.

Where the Board either expressly rejects the applications or is deemed to have rejected them by failing to give notification within the time limit, any person who documents that he or she has a direct or indirect interest may have recourse to judicial remedies against the rejection decision of the Board.

Amended first sentence: 2/7/2005, Law No. 5388, Art. 5 Where it is decided to conduct an investigation, the Board shall determine the rapporteur or rapporteurs who will conduct the investigation under the supervision of the relevant head of department. The investigation shall be completed within 6 months at the latest. Where deemed necessary, an additional period of up to 6 months may be granted by the Board, on one occasion only.

Amended second paragraph: 23/5/2024, Law No. 7511, Art. 4 The Board shall notify the parties concerned of the investigations it has initiated within 15 days from the date on which the decision to initiate the investigation was taken. Together with this notification letter, the Board shall send the parties concerned sufficient information on the type and nature of the allegations.

Amended third paragraph: 16/6/2020, Law No. 7246, Art. 9 In the course of an ongoing preliminary inquiry or investigation, commitments may be offered by the undertakings or associations of undertakings concerned with a view to eliminating competition problems arising under Article 4 or Article 6. If the Board is convinced that the competition problems can be eliminated by means of such commitments, it may, by making those commitments binding on the undertakings or associations of undertakings concerned, decide not to open an investigation or to terminate an investigation already opened. Commitments shall not be accepted in relation to clear and serious infringements such as price fixing between competitors, allocation of regions or customers, or restriction of the quantity of supply. The procedures and principles concerning the application of this paragraph shall be determined by a communiqué issued by the Board.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 After taking a decision under paragraph 3, the Board may open an investigation again in the following cases:

a) Where there is a material change in any element forming the basis of the decision,

b) Where the undertakings or associations of undertakings concerned act contrary to the commitments they have given,

c) Where the decision was taken on the basis of incomplete, incorrect or misleading information provided by the parties.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 After the initiation of an investigation, the Board may, upon the request of the parties concerned or ex officio, initiate the settlement procedure, taking into account the procedural benefits that will arise from the speedy conclusion of the investigation process and the differences of opinion regarding the existence or scope of the infringement. The Board may reach a settlement, until the notification of the investigation report, with the undertakings or associations of undertakings against which an investigation has been initiated and which admit the existence and scope of the infringement.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 In this framework, the Board shall grant the parties under investigation a definitive time limit to submit a settlement text in which they admit the existence and scope of the infringement. Submissions made after the expiry of the time limit granted shall not be taken into account. The investigation shall be concluded by a final decision containing the finding of infringement and the administrative fine.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 As a result of the settlement procedure, a reduction of up to twenty-five per cent may be applied to the administrative fine. The application of a reduction to the amounts of administrative fines pursuant to this Article shall not prevent a reduction from being made under paragraph 6 of Article 17 of Law No. 5326.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 Where the process ends in settlement, the administrative fine and the matters contained in the settlement text may not be made the subject of an action by the parties to the settlement.

Added paragraph: 16/6/2020, Law No. 7246, Art. 9 Other procedures and principles concerning settlement shall be determined by a regulation issued by the Board.

A panel composed of (…) rapporteurs acting on behalf of the Board and determined and assigned by the Board may, in the investigation phase, exercise the powers to request information regulated in Article 14 and to conduct on-site inspections regulated in Article 15 of this Law. Within the period so determined, it may request the parties and other relevant places to send the documents it deems necessary and to provide all kinds of information. During the investigation phase of the Board, the person or persons alleged to have infringed this Law may at any time submit to the Board all kinds of information and evidence that may affect the decision.

The parties notified that an investigation has been initiated against them may, until their request to exercise the right of oral defence, request that a copy of all kinds of documents drawn up concerning them within the Authority and, if possible, of all kinds of evidence obtained, be given to them.

The Board may not base its decisions on matters of which it has not informed the parties and in respect of which it has not granted the right of defence.

The report prepared at the end of the investigation stage shall be served on all members of the Board and on the relevant parties.

Amended paragraph 2: 23/5/2024, Law No. 7511, Art. 5 The parties shall be notified to submit their written defences to the Board within 30 days from the service of the investigation report. Where justified grounds are presented, this period may be extended once only and by up to an equal period at most. Where those assigned to conduct the investigation change their opinions in the investigation report as a result of the written defences received, they shall communicate their written opinions to all members of the Board and to the relevant parties within 15 days. The parties may respond to this opinion within 30 days.

Defences of the parties not submitted within the time limit shall not be taken into consideration.

An oral hearing shall be held upon the parties stating, in their reply petition or defence petitions, that they wish to exercise the right of oral defence. In addition, the Board may decide on its own initiative to hold an oral hearing.

The oral hearing shall be held no earlier than 30 days and no later than 60 days after the end of the investigation stage. Invitations to the oral hearing shall be sent to the parties at least 30 days before the date of the oral hearing.

Oral hearings shall be held in public. The Board may decide that the oral hearing be held in camera on the grounds of protecting public morals and trade secrets.

Oral hearings shall be presided over by the President of the Board or, where the President of the Board does not attend the hearing, by the Vice-President of the Board. The hearing shall be held with the participation of the President of the Board or the Vice-President and at least four Members of the Board.

Oral hearings shall be completed in at most five consecutive sessions, and the various meetings held within one day shall count as one session.

The parties are obliged to notify the Board, no later than 7 days before the oral hearing, of the means of proof they will rely on in the oral defence. The parties may not rely on means of proof not notified within the time limit.

In the oral defence, the relevant parties may rely on all kinds of evidence and means of proof regulated in Chapter Eight of Part Two of the Code of Civil Procedure. The sessions may be attended by the parties alleged to have infringed this Law or their representatives, and by those who prove to the Board before the session that they have a direct or indirect interest, or their representatives.

The decision shall be rendered on the same day after the oral hearing is held or, if this is not possible, within 15 days together with its reasoning.

Where the holding of an oral hearing is not requested by the parties and the Board has not decided on its own initiative to hold an oral defence, the final decision shall be rendered on the basis of an examination of the file within 30 days after the end of the investigation stage.

Where the relevant parties fail to appear for the oral defence even though it was decided to hold an oral defence, the decision shall be rendered on the basis of an examination of the file within one week after the scheduled hearing date.

Decisions of the Board shall be taken as a result of confidential deliberation and shall be pronounced publicly. No Member of the Board may abstain from voting. Members who were present at the oral hearing are obliged to participate in the deliberations, except those having an excuse.

The deliberation shall be presided over by the President of the Board or, where the President of the Board does not attend the deliberation, by the Vice-President, who shall determine the matters to be decided. After these matters have been freely discussed, the President shall collect the votes and cast his or her own vote last.

In its final decisions, the Board shall convene with the participation of at least five members in total, including the President or the Vice-President, and shall decide by at least four members voting in the same direction.

Where the quorum required for a decision cannot be achieved at the first meeting, the President shall ensure the participation of all members in the second meeting. However, where this is not possible, the decision shall be taken by the absolute majority of those attending the meeting. In this case as well, the meeting quorum may not be less than that specified in paragraph 1. In the event of a tie in votes at the second meeting, the side on which the President has voted shall prevail.

For decisions other than the final decision, and in particular for decisions and acts in the nature of interim measures and recommendations, at least one third of the members of the Board must convene and a decision of the absolute majority of those attending the meeting is required.

Decisions shall contain the following matters:

a) The names and surnames of the members of the Board rendering the decision,

b) The names and surnames of those who conducted the examination and inquiry,

c) The names and titles of the parties, their places of residence and their distinguishing characteristics,

d) A summary of the allegations of the parties,

e) A summary of the economic and legal issues examined and discussed,

f) The opinion of the rapporteur,

g) An assessment of all the evidence and defences put forward,

h) The reasoning and the legal basis of the decision,

ı) The conclusion,

k) Dissenting opinions, if any.

The duties imposed on and the rights granted to the parties by the decision shall be written clearly, so as not to give rise to any doubt or hesitation.

The decision shall be written by the President of the Board or by a member assigned by him or her. Decisions shall be signed by the members attending the meeting. Members dissenting from the decision may write dissenting opinions separately or jointly. The original of the decision shall be kept in the archives of the Board. One copy each shall be given to the parties against signature. One copy shall also be sent to the Publications Department of the Competition Authority for publication.

Decisions of the Board shall be published (...) on the website of the Authority in a manner that does not disclose the trade secrets of the parties.

For decisions of the Competition Board, time limits shall start from the date of service of the reasoned decision on the parties.

Amended: 23/1/2008, Law No. 5728, Art. 474

Amended paragraph 1: 2/7/2012, Law No. 6352, Art. 63 An action may be brought before the competent administrative court against decisions imposing administrative sanctions. All kinds of actions brought against decisions of the Board shall be treated as matters of priority.

Recourse to judicial remedies against decisions of the Board shall not stay the implementation of the decisions or the pursuit and collection of administrative fines.

Any agreement and any decision of an association of undertakings contrary to Article 4 of this Law shall be invalid. Performance of the obligations arising from these agreements and decisions may not be demanded. Where obligations previously performed are reclaimed on account of such invalidity, the parties' obligation of restitution shall be subject to Articles 63 and 64 of the Code of Obligations.

The provision of Article 65 of the Code of Obligations shall not apply to disputes arising from this Law.

Any person who prevents, distorts or restricts competition by acts, decisions, contracts or agreements contrary to this Law, or abuses his or her dominant position in a particular market for goods or services, shall be obliged to compensate all damages of those injured thereby. Where the damage has resulted from the conduct of more than one person, they shall be jointly and severally liable for the damage.

Those injured as a result of the prevention, distortion or restriction of competition may claim as damages the difference between the price they paid and the price they would have paid had competition not been restricted. Competing undertakings affected by the restriction of competition may claim compensation for all their damages from the undertaking or undertakings restricting competition. In determining the damage, all the profits that the injured undertakings expected to obtain shall be calculated by also taking into account the balance sheets of previous years.

Where the resulting damage arises from an agreement or decision of the parties or from cases involving their gross negligence, the judge may, upon the request of those injured, award compensation in an amount three times the material damage incurred or the profits obtained or likely to be obtained by those who caused the damage.

Where those injured submit to the judicial authorities evidence giving the impression of the existence of an agreement or of the distortion of competition in the market, in particular the de facto sharing of markets, stability observed in the market price over a period that may be considered long, or price increases made at close intervals by undertakings operating in the market, the burden of proving that the undertakings are not engaged in a concerted practice shall shift to the defendants.

The existence of agreements, decisions and practices restricting competition may be proved by any kind of evidence.

Amended: 16/6/2020, Law No. 7246, Art. 11

The money, documents and all kinds of property of the Authority shall be deemed State property. The President and members of the Board and the personnel of the Authority shall be deemed public officials with respect to offences committed by them on account of their duties and offences committed against them. Article 104 of the Banking Law No. 5411 dated 19/10/2005 shall apply by analogy with respect to the criminal and civil liability of the President and members of the Board and the personnel of the Authority.

Notifications to be made to the relevant parties under this Law shall be carried out in accordance with the provisions of the Notification Law No. 7201.

Except for the matters specified in this Law, the procedures and principles to be applied in the exercise of the powers of the Authority, its management and working principles, the collection of its revenues, the making of its expenditures and the auditing of these transactions, the principles of changes to be made in monthly salaries, the principles relating to the employment of foreign experts, the rules relating to the purchase of movable and immovable property to be purchased by the Authority and to the tendering procedure, and the provisions relating to the accounting system of the Authority shall be regulated in regulations to be prepared by the Board and put into force by the President of the Republic.

Regulations to be issued under this Law shall be issued within one year from the date of publication of this Law.

The Authority shall not be subject to the General Accounting Law No. 1050, the State Tender Law No. 2886, the Travel Allowance Law No. 6245, or their annexes and amendments.

The revenues of the Authority shall be exempt from Corporate Tax; donations and grants to be made to it shall be exempt from Inheritance and Transfer Tax; interest accruing in its favour on account of all kinds of transactions to be carried out shall be exempt from Banking and Insurance Transactions Tax; the revenues of the Authority and all transactions carried out in relation to these revenues, as well as the purchase and sale of immovable property, shall be exempt from all kinds of taxes, duties and fees; and vehicles to be acquired by the Authority shall be exempt from Vehicle Purchase Tax and Stamp Duty.

The first appointments to the Competition Board shall be made in accordance with the principles of Article 22. However, the provisions concerning the candidates to be nominated by the Competition Board shall not apply.

In the first appointments, the Prime Minister and the Minister of Industry and Trade shall each nominate two candidates for membership in place of the Board.

The members of the Board to be renewed at the end of the second and fourth years of the Board shall be determined by drawing lots at the last meeting of the Board in that period. For the first term, the President of the Board shall be appointed by the Council of Ministers from among two candidates to be nominated by the Minister of Industry and Trade, and the President and the Vice-President of the Board shall complete their terms as six years without taking part in the drawing of lots.

The Competition Board, to be appointed within the framework of the principles set out in Provisional Article 1, shall announce by a communiqué that it has established the organisation of the Competition Authority. All kinds of agreements and decisions existing on the date of the announcement shall be notified to the Board within 6 months from that date.

Within one year from the date of entry into force of this Law, the Competition Board may, once only, appoint a sufficient number of experts from public or private institutions to work in the Authority, without seeking the conditions in Articles 35 and 36 of the Law.

However, those to be appointed as experts must possess the qualifications listed in subparagraphs (a) and (c) of paragraph 1 of Article 35, have at least five years of experience in their profession, and not have passed the age of forty-one. For those to be appointed as experts from public institutions, it shall additionally be required that they entered their profession through a competitive examination and a qualifying examination.

Until the organisation of the Competition Authority is established, personnel of the related Ministry may be temporarily assigned to carry out the work of the Authority.

Added: 2/7/2005, Law No. 5388, Art. 6

No election or appointment shall be made for vacant memberships until the number of members of the Board falls to seven.

Added: 1/7/2006, Law No. 5538, Art. 13

The Board may convene and take decisions with at most seven members. Where the number of members of the Board exceeds seven, the President shall determine, in rotation, which member shall not participate in the meeting.

Added: 16/6/2020, Law No. 7246, Art. 12

On the date of entry into force of this Article, those in the positions of examination expert at the Authority shall be deemed appointed to competition expert positions, and those in the positions of senior coordinator and professional coordinator to chief competition expert positions; (…) those in the position of garage chief to the position of driver, together with their position grades, without the need for any further procedure. Where the total net amount of all payments made to those so appointed within the scope of financial rights, excluding payments linked to actual work, in the last month in connection with their former positions (this amount being taken as a fixed value) exceeds the total net amount of all payments made within the scope of financial rights, excluding payments linked to actual work, in connection with the new positions to which they are appointed, the difference shall be paid separately as compensation, without being subject to any tax or deduction, until the difference is closed. Payment of the difference compensation shall cease for those whose position title to which they were appointed changes at their own request and for those appointed to other institutions at their own request. Annulled sentence: Constitutional Court decision of 9/11/2022, E. 2020/67, K. 2022/139.

Those who, on the date of entry into force of this Article, are employed under administrative service contracts and hold positions of the Authority other than those listed in paragraph 1 shall be deemed appointed, without the need for any further procedure, to positions of the same title and grade included in Schedule (I).

The former positions of those appointed under paragraphs 1 and 2 shall be deemed abolished without the need for any further procedure.

Among the personnel serving in the positions of the Authority under administrative service contracts on the date of entry into force of this Article, the existing positions of those whose positions, in terms of title and/or grade, are not included in Schedule (I) shall be preserved as personal to them. These positions shall be deemed abolished without the need for any procedure if they become vacant for any reason.

With respect to personnel covered by this Article who were in the positions of the Authority on 15/1/2012, the provisions of legislation in force before that date shall continue to be applied, also taking into account the provisions of provisional Article 10 of Decree Law No. 375 dated 27/6/1989.

Added: 16/6/2020, Law No. 7246, Art. 13

Those who, on the date of entry into force of this Article, are working as professional personnel at the Authority but to whom no separate grade promotion was applied upon their appointment from assistant competition expert to competition expert shall benefit from one grade promotion without any further condition being sought.

Article 16 of this Law concerning administrative fines and Article 17 shall enter into force one year after the date of its publication, and the other articles on the date of its publication.

The provisions of this Law shall be executed by the Council of Ministers.

Schedule Concerning the Fines in Articles 16 and 17 of Law No. 4054

Schedule showing the amounts of fines, which increase every year pursuant to the provision of additional Article 2 of the Turkish Criminal Code,

as announced by the Communiqué (No: 2008/1) of the Competition Authority on the implementation of the provisions of Law No. 4054, dated 29/12/2007 and

published in the Official Gazette No. 26741,

and the date ranges in which they shall be applied

RELEVANT ARTICLE OF THE LAW

FINES PROVIDED

FOR IN THE LAW

(TL)

FINES TO BE APPLIED BETWEEN 01/1/2007 AND 31/12/2007

(TL)

FINES TO BE APPLIED BETWEEN 01/1/2008 AND 31/12/2008

(TL)

Art. 16, subparagraph (a)

100.000.000

3.432 YTL.

3.679 YTL.

Art. 16, subparagraph (b)

100.000.000

3.432 YTL

3.679 YTL.

Art. 16, subparagraph (c)

50.000.000

1.716 YTL.

1.839 YTL.

Art. 16, subparagraph (d)

60.000.000

2.058 YTL.

2.206 YTL.

Art. 16, paragraph 2

200.000.000

6.864 YTL.

7.358 YTL.

Art. 17, subparagraph (a)

50.000.000

1.716 YTL.

1.839 YTL.

Art. 17, subparagraph (b)

25.000.000

858 YTL.

919 YTL.

Art. 17, subparagraph (c)

25.000.000

858 YTL.

919 YTL.

Art. 17, subparagraph (d)

20.000.000

685 YTL.

734 YTL.