Studies on updating the Guidelines on Vertical Agreements ongoing for nearly two years has been completed. At the beginning, updating studies focused on agency agreements, Internet sales and most favored customer clause (MFC). However, within the framework of the opinions received from both internal and external shareholders, it was observed that it was not necessary to make any changes with respect to agency contracts; thus, there were not any amendments about this subject.

The first update in the Guidelines is related to Internet sales. While the development of Internet as a new distribution channel provides customers with the opportunity to reach a wide data set, compare prices and access to more products and sellers, it enables producers to market their products to a wider area at lower costs. In our country, the annual growth rate of Internet sales has increased rapidly, as a consequence of which a need to regulate Internet sales has arisen. In the process of reevaluating competition law provisions with respect to Internet sales, a balance was sought between keeping the benefits of Internet sales for consumers and resellers and protecting producers’ commercial interests. The only regulation in our legislation about Internet sales was a statement that Internet sales were regarded as passive sales. The lack of regulation on this subject was offset by adding the paragraphs numbered 25, 26, 27, 28 and 29 to the Guidelines. Moreover, the existing provision in paragraph 31 on selective distribution system was amended with regard to Internet sales.

The second update in the Guidelines is about “most favored customer clause”. MFC clause is one of the subjects which competition authorities and competition enforcers have been analysing recently. With the widening of e-commerce, MFC clause has become more important for competition authorities and there is a need to make regulations. Within this framework, an explanation about MFC was added to paragraph 19 under the title “Resale Price Maintenance” in the Guidelines. Moreover, a new title “9.5.2.9. Most Favored Customer Clause” was inserted under “Analysis of Various Vertical Restrictions”, where detailed explanations are provided about MFC.

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