Electricity Companies Are Under Investigation In Turkey: Alleged Abuse Of Dominance
The Turkish Competition Authority (“TCA”) is examining whether business practices of Toroslar Elektrik Dağıtım A.Ş. and Enerjisa Toroslar Elektrik Perakende Satış A.Ş. forecloses operations of independent providers and prevent the exercise of consumers’ right to choose their own providers.
The TCA assesses the commercial practices of the companies in light of Article 6 of the Turkish Competition Law (equivalent of Article 102 of the Treaty on the Functioning of the EU). The investigation was launched in the end of January 2017.
Investigation Into Telecommunication Companies
The TCA completed its preliminary inquiry in relation to alleged abuse of dominance by the telecommunication companies Türk Telekomünikasyon A.Ş. and TTNET A.Ş. As a result, the TCA resolved to launch an investigation with a view to detecting whether TTNET has abused its dominant position through practices in relation to fixed broadband internet packages and pay-tv service.
The commercial practices of the company will be assessed in light of Article 6 of the Turkish Competition Law (equivalent of Article 102 of the Treaty on the Functioning of the EU).
Turkish Competition Authority Fines Branded Sunglasses Wholesaler Luxottica
The Turkish Competition Authority (TCA) has concluded its decision in relation to the investigation initiated on September 1, 2015 into the sales practices of Luxottica Gözlük Endüstri ve Ticaret A.Ş. (Luxottica Turkey).
The TCA resolved on February 23, 2017 with majority of votes, that Luxottica Turkey was in dominant position in the branded sunglasses wholesale market and that it has abused this position through practices foreclosing the market to its competitors. In this regard, the TCA fined Luxottica Turkey, TRY 1,672,647 (approximately EURO 437k), which corresponds to 0.75% of the company’s turnover.
Fuel Distribution Companies Are Under Investigation In Turkey Again
Fuel distribution companies are under antitrust investigation in Turkey again following a decision of the Council of State. The TCA is re-evaluating whether the fuel distribution companies in question have been unfairly restricting competition and freedom of contract through usufruct rights preventing their dealers from purchasing auto gas LPG from other companies.
The TCA by its decision No 17-13/166-M dated20.04.2017 launched an investigation into OMV Petrol Ofisi A.Ş., Milan Petrol San. Tic. A.Ş. and TP Petrol Dağıtım A.Ş. Back in 2009 the TCA conducted preliminary investigation in relation to these companies and decided not to initiate the investigation. However, this decision was annulled by the Council of State in 2016. Currently, the TCA is assessing whether the mentioned companies unfairly restricted competition and freedom of contract through usufruct rights preventing their dealers from purchasing auto gas LPG from other companies.
The case is important as it is expected to shed a light of the dealership system in this sector, particularly in relation to long-term usufruct rights, five-year-term limitation on the dealership agreements and non-compete clause.