Competition law is based on the rules made to protect competition in the markets for goods and services. Those rules which concern practices and transactions of undertakings operating in the markets for goods and services are categorized under three headings in general.  Within this framework, competition rules prohibit agreements, decisions and concerted practices between undertakings which restrict competition as well as abuse of dominant position and control mergers and acquisitions above certain thresholds.  

The prohibition and control imposed by competition rules basically aim to prevent monopolization and cartelization because such entities certainly harm consumer welfare, which is a significant element of social welfare, and competition rules aim to protect social welfare.  On the other hand, although certain agreements have an impact restricting competition, they may create economic efficiencies/benefits beyond this impact. Competition law provides for the exemption regime so that such agreements which have clear effects promoting competition can be made. Except cartel agreements that are outside this scope by nature, agreements between undertakings at the same (horizontal) or different (vertical) levels of the market may be exempted from the prohibition imposed by competition rules under the exemption regime. 

 The purpose of the Act no 4054 on the Protection of Competition, which is the basis of the competition legislation in our country, is explained in article 1 of the Act as “... to prevent agreements, decisions and practices preventing, distorting or restricting competition in the markets for goods and services, and the abuse of dominance by the undertakings dominant in the market, and to ensure the protection of competition by performing the necessary regulations and supervisions to this end.” To realize this objective, the transactions that are within the scope of the Act are grouped into three categories under articles 4, 6 and 7 of the Act.  Within this framework, 

•    Article 4 covers all agreements, decisions and practices which prevent, distort or restrict competition between any undertakings operating in or affecting markets for goods and services within the borders of the Republic of Türkiye.
•    Article 6 covers abuse of dominant position
•    Article 7 covers any legal transaction or conduct that constitute a merger or an acquisition to create a dominant position or strengthen an existing dominant position which would result in significant lessening of competition. 

The regulations under articles 4, 6 and 7, which form the basis of the Act no 4054 and include mandatory provisions, concern undertakings.  The act defines undertakings as “natural and legal persons who produce, market and sell goods or services in the market, units which can decide independently and constitute an economic whole”. In this regard, there is not a distinction between public and private undertakings.  In other words, there are not any privileges for public enterprises in the Act no 4054.  In case public enterprises engage in agreements, practices or decisions which restrict competition, they are subject to the provisions of the Act. In addition, there is not a distinction among sectors in the Act no 4054, either. Practices and transactions of undertakings or associations of undertakings which restrict competition in all markets for goods and services are under the scope of the Act.  

 You can find the sub-titles and concepts that can be examined under the “Principles of Competition Law” section through the menu on the left.