We begin this Winter Edition 2024 with a recap of 2023, which was another significantly active year for the Turkish Competition Authority (“TCA”). Indeed, in 2023, Turkish competition law witnessed a significant surge, characterized by noteworthy precedents alongside fresh sector inquiries initiated by the TCA into digital platforms, online advertising, mobile ecosystems, and fast-moving consumer goods (“FMCG”). The TCA dedicated its attention to a multitude of investigations, with particular emphasis placed on notable abuse of dominance violations involving well-known tech platforms such as Meta (Facebook), Sahibinden, and Trendyol.
In particular, these in-depth assessments into the digital markets have paved the way for new regulations in 2023, one of them being the new e-commerce law, for a more stringent regulatory environment for online marketplaces and other participants in the e-commerce sector. While we will cover this development under the first title of the Winter Edition; in brief, the new e-commerce legislation heralds substantial forthcoming changes for the competitive dynamics of the e-commerce sphere, particularly affecting its major players and notably the “gatekeepers.”
Furthermore, 2023 clearly demonstrates the TCA’s dedication to efficiency, as it completed a year advancing commitment and settlement procedures. In particular, in August 2023, the TCA announced that it found EssiLux breached its commitment against exclusivity and simultaneously abused its dominant position. In December 2023, the TCA also imposed a daily administrative monetary fine on Meta due to its failure to comply with obligations previously imposed as a result of its abuse of dominant position. The second title of this Winter Edition will shed light on the non-tolerance policy of the TCA for non-compliance with commitments.
As for settlements, following legislative amendments, 92 companies admitting to infringements paid approximately TRY 836 million in administrative fines. These revisions have collectively fostered a more efficient and transparent legislative framework for both businesses and consumers. One of the recent developments on the topic concerns the TCA’s decisions of Beypazarı and Kınık (both mineral water companies), which marked the inaugural application of settlement and leniency mechanisms in tandem. Both companies applied for settlement and leniency resulting in a total reduction of fines by 60% for Kınık and 55% for Beypazarı. We will demonstrate how the settlement mechanism works through recent settlement examples involving investigations in the cosmetics and personal care sector under this Winter Issue.
On a relevant note, the last quarter of 2023 also witnessed significant developments and revisions to the Regulation on Active Cooperation for Detecting Cartels (“Leniency Regulation”). The key amendments include encompassing cartel facilitators within the leniency mechanism, extending support for leniency applications concerning violations not subsequently identified as cartels, and adjusting discount ranges for administrative fines, which we will provide a detailed summary of below under this Edition.
From a merger control perspective, the TCA published its yearly report for 2023, which summarizes the statistics: The TCA evaluated 217 transactions, marking a noticeable decrease from the 245 transactions reviewed in the preceding year. This decline can be partially attributed to adjustments in jurisdictional thresholds implemented in 2022, deviating slightly from the decade-long average of 219 transactions. This Winter Edition finally will summarize the yearly report as well as the important numbers and will highlight one of the most remarkable merger decisions of 2023, Microsoft/Activision Blizzard.
We trust you will find this Winter Edition helpful.
The headlines of the season includes new e-commerce legislation, Meta’s and Microsoft’s decisions, RPM cases in cosmetics and personal care sector, new leniency regulation, Turkish Competition Authority’s M&A overview report for 2023. You may reach the newsletter here.
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