ARTICLE
23 April 2019

Price Fixing

EG
ELIG Gürkaynak Attorneys-at-Law

Contributor

ELIG Gürkaynak Attorneys-at-Law is an eminent, independent Turkish law firm based in Istanbul. The firm was founded in 2005. ELIG Gürkaynak is committed to providing its clients with high-quality legal services. We combine a solid knowledge of Turkish law with a business-minded approach to develop legal solutions that meet the ever-changing needs of our clients in their international and domestic operations. Our legal team consists of 90 lawyers. We take pride in being able to assist our clients in all fields of law. Our areas of expertise particularly include competition law, corporate law, M&A, contracts law, white collar irregularities and compliance, data protection and cybersecurity law, litigation and dispute resolution, Internet law, technology, media and telecommunications law, intellectual property law, administrative law, real estate law, anti-dumping law, pharma and healthcare regulatory, employment law, and banking and finance law.
Price fixing is an agreement between participants that operate on the same level of a supply chain (i) to buy or sell a product, service, or commodity at fixed prices, or (ii) to maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.
Turkey Competition and Antitrust
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Price fixing is an agreement between participants that operate on the same level of a supply chain (i) to buy or sell a product, service, or commodity at fixed prices, or (ii) to maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. Article 4 of Law No. 4054 on the Protection of Competition (the "Competition Law") brings a non-exhaustive list of prohibited restrictive agreements. Price fixing is at the top of the list. Consequently, direct or indirect agreements that have as their purpose or effect the fixing of (i) the purchase or sale price of goods or services, (ii) elements such as cost and profit which form the price, and (iii) any terms of purchase or sale, are considered per se illegal.

Price fixing is one of the most common forms of cartel agreements. Prices may be fixed through determining maximum or minimum prices as well as through standardization of various rebate systems. Therefore, it is not only direct agreements which result in price control that constitute competition law violation; practices that induce price control mechanisms in an indirect manner may also fall under the scope of the price fixing prohibition.

In addition to agreements concluded between competitors, price fixing may occur by decisions of trade associations. A decision by a trade association may become subject to sanctions for any of the prohibited activities indicated in Article 4 in the same manner as other anti-competitive agreements.

The Turkish Competition Board (the "Board") has a prudent approach to price fixing conduct. In many cases, the Board has imposed serious administrative monetary fines against companies for price fixing. For example, the Board fined fourteen autogas dealers located in Adýyaman province for engaging in concerted determination of prices (18-09/180-85; 29.03.2018).

Take Note
This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.
ARTICLE
23 April 2019

Price Fixing

Turkey Competition and Antitrust

Contributor

ELIG Gürkaynak Attorneys-at-Law is an eminent, independent Turkish law firm based in Istanbul. The firm was founded in 2005. ELIG Gürkaynak is committed to providing its clients with high-quality legal services. We combine a solid knowledge of Turkish law with a business-minded approach to develop legal solutions that meet the ever-changing needs of our clients in their international and domestic operations. Our legal team consists of 90 lawyers. We take pride in being able to assist our clients in all fields of law. Our areas of expertise particularly include competition law, corporate law, M&A, contracts law, white collar irregularities and compliance, data protection and cybersecurity law, litigation and dispute resolution, Internet law, technology, media and telecommunications law, intellectual property law, administrative law, real estate law, anti-dumping law, pharma and healthcare regulatory, employment law, and banking and finance law.

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