Investigation concerning Türk Telekomünikasyon A.Ş. and TTNET A.Ş. Concluded (27.12.2013)

Investigation conducted in order to find whether Türk Telekomünikasyon A.Ş. and TTNET A.Ş. violated article 6 of the Act no 4054 by means of their pricing policies in the markets for retail and wholesale fixed broadband Internet access services was concluded.

The investigation was initiated as a result of the preliminary inquiry conducted upon the claims that the economic entity consisted of Türk Telekomünikasyon A.Ş. and TTNET A.Ş. abused its dominant position by price squeezing in the market for wholesale fixed broadband Internet services and by means of campaigns, via TTNET, in the market for retail fixed broadband Internet access services. At the investigation phase, cost and profitability analyses were made in order to find whether costs born due to benefits for subscribers in campaigns such as discounts and free usage were met from those users. Within this framework, vertical integrated structure and the market position of the undertaking, the conditions in the relevant market, the position of competing undertakings and customers/suppliers, the scope and the duration of the conduct examined, evidence related to de facto market foreclosure as well as direct and indirect evidence related to exclusionary strategy were taken into account.

As a result of the discussion of the contents of the file by the Competition Board on 19.12.2013, it was decided that the economic entity consisted of Türk Telekomünikasyon A.Ş. and TTNET A.Ş. held dominant position in the market for wholesale fixed broadband Internet services; some of the campaigns of the said economic entity failed to meet the costs; the practices in question were not expected to create anticompetitive effects in the market, considering the current conditions; therefore, the economic entity did not abuse its dominant position within the framework of article 6 of the Act no 4054 by means of "price squeezing".

Nevertheless, the decision stated that an opinion shall be delivered to the economic entity. Accordingly, a warning that the campaigns including Tivibu Home service and prevention of canceling may cause market foreclosure in the future and campaigns including Tivibu Home service should not be renewed with the current terms shall be issued.

Click here for the text of the pronouncement (in Turkish) dated 19.12.2013 and numbered 13-71/992-423, the reasoned decision for which will be notified later and which can be appealed before Ankara Administrative Courts.