{"id":135502,"date":"2023-12-19T12:08:37","date_gmt":"2023-12-19T12:08:37","guid":{"rendered":"https:\/\/beta.paksoy.av.tr\/news\/the-new-active-cooperation-regulation-introduces-certain-deadlines-for-applicants-to-apply-for-leniency-and-to-benefit-from-reduction-in-fines-accordingly-in-order-to-be-eligible-for-a-reduction-in\/"},"modified":"2024-07-27T04:47:33","modified_gmt":"2024-07-27T04:47:33","slug":"the-new-active-cooperation-regulation-introduces-certain-deadlines-for-applicants-to-apply-for-leniency-and-to-benefit-from-reduction-in-fines-accordingly-in-order-to-be-eligible-for-a-reduction-in","status":"publish","type":"post","link":"https:\/\/paksoy.av.tr\/en\/2023\/12\/the-new-active-cooperation-regulation-introduces-certain-deadlines-for-applicants-to-apply-for-leniency-and-to-benefit-from-reduction-in-fines-accordingly-in-order-to-be-eligible-for-a-reduction-in\/","title":{"rendered":"New Turkish Leniency Regulation enters into force"},"content":{"rendered":"

The Regulation on Active Cooperation for Detecting Cartels (\u201c\u201cNew Active Cooperation Regulation<\/strong>\u201d or \u201cNew Leniency Regulation<\/strong>\u201d), which provides immunity from fines or reduction in fines to undertakings, undertaking managers and employees who actively cooperate with the Turkish Competition Authority (\u201cAuthority<\/strong>\u201d) for the purpose of uncovering cartels prohibited under Turkish Competition Law, has entered into force after its publication in the Official Gazette dated 16 December 2023 and numbered 32401.<\/p>\n

The Leniency Regulation had entered into force in 2009, and no significant amendment has been made to the said legislation since then. It can be considered that the New Active Cooperation Regulation aims to eliminate the uncertainties in practice in the context of the Authority\u2019s strong sanctions against cartels, especially with the introduction of new concepts to the leniency mechanism, such as cartel facilitators, to encourage leniency applications for violations such as hub and spoke cartels, and also, harmonisation of the leniency program with the European Union legislation by introducing the requirement for applicants to submit documents with significant added value. Against this background, it can be stated that the leniency program has been adapted to today\u2019s conditions with the New Active Cooperation Regulation. The principle amendments brought by the New Active Cooperation Regulation are as follows:<\/p>\n

1. Incorporation of Cartel Facilitators to the Leniency Mechanism<\/strong><\/p>\n

The new Active Cooperation Regulation introduces the definition of \u201ccartel facilitator\u201d for \u201cundertakings and associations of undertakings that facilitate the establishment and\/or maintenance of a cartel through their activities, without operating at the same level of the production or distribution chain with the cartel parties\u201d. Thus, in hub and spoke cartels where the establishment of a cartel between undertakings operating at the same level is mediated by an undertaking operating in a upstream or downstream market, a significant step has been introduced that paves the way for undertakings acting as \u201ccartel facilitators\u201d operating in the downstream or upstream market of the cartel to benefit from the leniency program.<\/p>\n

2. Introduction of the Requirement to Submit Documents with Significant Added Value<\/strong><\/p>\n

In parallel with the European Union legislation, the New Active Cooperation Regulation requires the applicants to submit documents \u201cwith significant added value\u201d, in other words, information and\/or documents that will reinforce the Board\u2019s ability to prove the cartel, taking into account the evidence already available to the Board. Accordingly, in order for the applicant to benefit from a reduction in fines, the information and documents to be submitted to the Authority must add significant value.<\/p>\n

With the aforementioned provision, the distinction between the active cooperation mechanism, which is essentially a method of obtaining evidence, and the settlement mechanism, which is an alternative case conclusion method, has become clearer. The mechanisms regulated under the New Leniency Regulation allow the Authority to unearth cartels and collect evidence from cartel parties in exchange for full immunity from fines or lower fines. The settlement procedure, on the other hand, is an alternative method by which the investigated undertakings can accept the allegations in exchange for a reduction in fines.<\/p>\n

3. Leniency Application for Non-Cartel Violations<\/strong><\/p>\n

The New Active Cooperation Regulation introduces provisions paving the way for the applicant to benefit from an exemption or reduction in fines within the scope of the leniency mechanism, even if the applicant applies for leniency on the assumption that it constitutes a cartel infringement, but it is later decided by the Board that the relevant infringement does not in fact qualify as a cartel. This amendment is expected to eliminate concerns of undertakings that hesitate to apply to the leniency program due to uncertainties regarding the nature of the infringement.<\/p>\n

4. Timing Restrictions<\/strong><\/p>\n

The New Active Cooperation Regulation introduces certain deadlines for applicants to apply for leniency and to benefit from reduction in fines. Accordingly, in order to be eligible for a reduction in fines, the applicant must apply to the Authority \u201cwithin three months following the notification of the investigation, provided that it is before the notification of the investigation report\u201d.<\/p>\n

In addition, following the completion of applications made for leniency or reduction from fines, if any additional information and documents are obtained by the applicant, these must be submitted to the Authority immediately and in any case, before the end of the second written defence period. Accordingly, it is considered that the Authority aims to accelerate the processes in the evaluation of the leniency application.<\/p>\n

5. Discount Ranges for Administrative Fines<\/strong><\/p>\n

In terms of discount rages to be granted to the applicant, the New Active Cooperation Regulation reduces certain minimum discount thresholds to a certain extent, while also increasing the maximum thresholds at certain rates. Accordingly, the increase in the upper limits of the discount ranges is considered to incentivise applications.<\/p>\n

6. Procedural Regulations<\/strong><\/p>\n

With a procedural amendment, undertakings or associations of undertakings that apply to the leniency program will be obligated to provide written and\/or oral statements of the current managers and employees of the applicant if deemed necessary by the Authority. Furthermore, in cases where the former executives\u2019 and employees\u2019 written and\/or oral statement is deemed necessary by the Authority, the applicant will also be obligated to show \u201cutmost diligence and care\u201d to ensure this.<\/p>\n

The New Active Cooperation Regulation published in the Official Gazette can be accessed here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Regulation on Active Cooperation for Detecting Cartels (\u201cNew Active Cooperation Regulation\u201d or \u201cNew Leniency Regulation\u201d) has entered into force after its publication in the Official Gazette dated 16 December 2023 and numbered 32401.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[281],"tags":[],"class_list":["post-135502","post","type-post","status-publish","format-standard","hentry","category-publications"],"acf":[],"yoast_head":"\nNew Turkish Leniency Regulation enters into force | Paksoy Attorneys at Law<\/title>\n<meta name=\"description\" content=\"The Regulation on Active Cooperation for Detecting Cartels (\u201cNew Active Cooperation Regulation\u201d or \u201cNew Leniency Regulation\u201d) has entered into force after its publication in the Official Gazette dated 16 December 2023 and 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