Recently certain news items were published in some media outlets concerning the Competition Authority in relation to the problems which arose following the privatization of the İstanbul Deniz Otobüsleri Sanayi ve Ticaret A.Ş. (İDO). Consequently, an explanation has been deemed necessary: 

1. After the İstanbul Metropolitan Municipal Council (İBB) decided to privatize İDO with its decision dated 18.09.2009, Competition Authority was notified on 24.09.2010 and the Competition Board Opinion concerning the measures that would ensure a more competitive operation of the relevant market after the privatization transaction was submitted to İBB with a decision dated 16.10.2012. 

2. The Board opinion found the block sale privatization of the İBB shares in İDO acceptable; however, it stated that, among the routes in the ferry transportation market between the northern and southern ports of the Sea of Marmara, the bundled sale of the  

      -  Eskişehir-Topçular route and Pendik-Yalova route, and 
      - Yenikapı-Bursa route and Yenikapı-Bandırma or Yenikapı-Yalova route could lead to competitive concerns. 

3. However, on 14.04.2011, in its final notification to the Authority concerning the privatization of İDO, İBB chose not adopt the Authority Opinion which advised that potentially competing routes be sold to different undertakings, and decided to sell İDO as a whole to a single undertaking.

4. Later, on 04.05.2011, the Board assessed the final notification under article 7 of the Act no 4054 and issued its final decision which stated that the transaction could be authorized, since potential acquisition by any of the bidders listed in the notification would not lead to a significant lessening of competition through the creation of a dominant position or through the strengthening of an existing one.

5. Within this context, it should be noted that Competition Board may still initiate examinations on its own initiative or in response to a complaint in case of restrictions of competition in any market, including those formed as a result of privatization transactions. As a matter of fact, in response to a large number of complaints submitted to the Authority concerning excessive pricing practices by İDO, two preliminary inquiries were conducted in 2012 but an investigation was not initiated since no evidence was found suggesting that İDO engaged in practices which were in violation of the Act no 4054 on the Protection of Competition. 

6. As in all privatization processes, the goal of the Competition Authority's evaluations during the privatization of İDO was to ensure that the market was shaped in a competitive manner. During this process, the President of the Competition Authority Prof. Dr. Nurettin Kaldırımcı did not say "No one other than İDO can do this," or made any other statement that could be interpreted as to mean that no other undertaking may enter the passenger and vehicle transport services market in the Sea of Marmara. Therefore, Mr. President's statement in an interview which mainly concerned the privatization process and which may be paraphrased as "there may be legal barriers before entrance into the market by any undertaking other than İDO," should not be misconstrued. In addition, Competition Authority is not the decision maker concerning whether other undertakings may enter the market.

Respectfully submitted for the information of the public.

Click here  for the relevant Board Opinion (in Turkish).
Click here  for the relevant Board Decision (in Turkish).