Article 4 of the Act no 4054 prohibits all agreements and concerted practices between undertakings, which have as their object or effect or likely effect the prevention, distortion or restriction of competition directly or indirectly.

On the other hand, although certain agreements have an impact restricting competition, they may create economic efficiencies/benefits beyond this impact. In order to ensure the realization of such agreements which have a clear effect on promoting competition, competition law provides for the exemption regime. 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 Competition Board assesses agreements, decisions or practices that may fall under the prohibition and may grant exemption to relationships as a result of which economic/technological improvement is reflected to the consumer positively and which do not restrict competition significantly.

According to article 5 of the Act, the Board may grant exemption to agreements under the scope of article 4 if all of the following conditions are fulfilled:

(a) They must ensure new developments or improvements or economic or technical improvement in the production or distribution of goods, and in the provision of services,

(b) Consumers must benefit from the above-mentioned,

(c) They must not restrict competition in a substantial part of the market and

(d) They must not restrict competition more than necessary to achieve the goals set out in sub-paragraphs (a) and (b).

Exemption can be granted for a definite or an indefinite period. Exemption granted for a definite period may be renewed at the end of the period. The Board may impose certain conditions to the parties for granting exemption and exemption depends on the fulfillment of those conditions.

There is a basic distinction in the exemption regime: block exemption and individual exemption.  Under the scope of block exemption, the Board block exempts agreements on certain subjects from the enforcement of article 4 of the Act.  Agreements and decisions under the scope of block exemption benefit from exemption automatically. Further notification is not necessary. Thus, before applying to the Authority, parties should assess whether the agreement in question is under the scope of block exemption. Block exemption Communiqués in force are given below:

Block Exemption Communiqué no 2002/2 on Vertical Agreements

Block Exemption Communiqué no 2003/2 on Research and Development Agreements

Block Exemption Communiqué no 2005/4 on Vertical Agreements and Concerted Practices in the Motor Vehicles Sector.

Block Exemption Communiqué no 2008/2 on Technology Transfer Agreements

Block Exemption Communiqué no 2008/3 on Insurance Sector

Block Exemption Communiqué on Specialization Agreements (Communiqué No: 2013/3)

There are guidelines to explain the provisions in certain block exemption communiqués. The guidelines in question are given below:

Guidelines on Vertical Agreements

Guidelines on the Explanation of the Block Exemption Communiqué no 2005/4 on Vertical Agreements and Concerted Practices in the Motor Vehicles Sector.

Guidelines on the Application of Articles 4 and 5 of the Act no 4054 on the Protection of Competition to Technology Transfer Agreements

Guidelines on Subcontracting Agreements

Guidelines on the General Principles of Exemption - Date of Adoption: 28.11.2013 Decision Number: 13- 66 / 923- RM(10)

Guidelines on Horizontal Cooperation Agreements Date of Adoption: 30.04.2013 Decision Number: 13- 24/ 05- RM(6)

Agreements that are not under the scope of block exemption are subject to individual exemption assessment. Notification to the Competition Board is not required in terms of individual exemption. It should be noted that since there is not an obligation to notify, the evaluation for exemption must be done first by undertakings and associations of undertakings. Undertakings should take into account block exemption communiqués, guidelines explaining those communiqués and other relevant guidelines as well as previous Board decisions in addition to the conditions listed in article 5 while making an evaluation for exemption. On the other hand, the Board makes an exemption assessment for the applications made with an exemption request to ensure legal certainty.