18th Annual Activity Report, which sets out TCA’s activities in 2016, has been published. Increased competition law awareness of the undertakings due to competition advocacy activities may explain the decreasing tendency in the number of antitrust cases in the last five years period. At the same time the increase in the total number of the TCA’s decisions in 2016 could be attributed to the increase in the number of mergers/acquisitions/ privatization files. More statistics and summary of the Report are provided below.
Overall examination of the TCA’s activities shows that in 2016 the TCA reviewed and finalized 325 cases, out of which:
· 83 of these files are related to competition violations (anticompetitive practices/abuse of dominance),
· 33 of them are related to applications for exemption/ negative clearance, and
· 209 of these cases concern merger/acquisition/privatization processes. The increase in the total number of decisions in 2016 could be attributed to the increase in the number of mergers/acquisitions/ privatization files.
Antitrust cases
83 decisions resulted either from the preliminary investigations or inquiry processes carried out in 2016 regarding the alleged violations of Articles 4 and/or 6 of the Turkish Competition Law (anticompetitive agreements and abuse of dominance respectively). This figure decreased compared to 89 cases in 2015. 9 out of these 83 cases were examined ex officio.
Increased competition law awareness of the undertakings due to competition advocacy activities (including as a result of Communiqué on the Application Procedure for Competition Violations No. 2012/2 and decisions of the TCA) may explain a tendency towards a decrease in the number of antitrust cases.
Sectors that were subject to competition review most frequently in 2016: (i) oil and petrochemicals, (ii) transportation, vehicles and services, as well as (iii) food, agriculture, forestry, fisheries and livestock. The overall share of these three sectors in the competition infringement cases, concluded by the TCA in 2016, is about 47%.
Out of 83 decisions, 62 were taken following preliminary investigations, and 20 – following full-fledged investigations. The TCA rejected complaints in 11 cases. Administrative penalties were imposed on undertakings in 9 cases.
Exemption applications
As regards the exemption/negative clearance applications, out of 33 cases 9 were related to medicine health and medical supplies. Out of 24 exemption applications lodged in 2016, 19 resulted in direct or conditional block exemptions and/or individual exemptions. 67% of the files in relation to exemption/negative clearance files were in the pharmaceutical, health and medical materials, finance and transportation, vehicle and services sectors.
M&A notifications
As regards concentration cases, out of 209 transactions, 161 were acquisition, 32 were joint venture establishments, 9 were privatizations and 7 were mergers. Foreign investors continue to be interested in the Turkish market, considering the increase in the value (as well as the number, although less significantly) of Turkish-to-foreign transactions, and foreign investment in Turkish companies in 2016.
Mustafa Ayna and Ayberk Kurt
