The elimination of barriers to market mechanism is included among the major duties of the Competition Authority. During the transfer of certain assets and concessions owned by the public to the private sector, competitive conditions in the market should be regarded. Within this context, it has been rendered obligatory that opinion of the Authority be received about legislation which would affect competitive conditions or grant concessions to public undertakings or private undertakings in the relevant market, or about draft legislations which contain provisions as to the regulation of markets.
Privatization forms one of the very important matters that is required to be concluded within a rapid and efficient regulation to the possible extent, which ranks among the first places of Turkey’s agenda today. In the conclusion of privatization in accordance with its fundamental objectives, Authority practices have a very important place. Because setting up, developing and forming a competitive market environment as a result of privatization is one of the leading terms of ensuring efficency in economy both in resource allocation and in production. Particularly, in privatization of natural monopolies, and of legal monopolies realized by granting concessionary right, ensuring efficient competitive terms in the relevant markets as a result of privatization bears great importance. Therefore, the goal in privatization is not only the transfer of public assets and concessions to the highest bidder, or to a single buyer in the event that there exists one buyer exclusively. Moreover, with a well-designed privatization, both price can increase and market mechanism shall have been operated by protecting competitive conditions in the relevant market.
The Board has issued a special communiqué as to privatization transactions. With this communiqué, the ability for transfers to be made via privatization to gain legal validity has been rendered subject to the fact that prior to a tender, opinion of the Competition Board be received in respect of the effects of the transaction on competition in the relevant market and that after a tender, authorization be received from the Competition Board in respect of the acquisition transaction.