Agenda of the Turkish Competition Authority in June
This issue of Quick Read summarises the decisions, announcements and important competition law events published by the Turkish Competition Authority (“TCA”) in June 2024.
Dive into June updates
Under the lens: TCA scrutinises Apple's App Store payment policies
In early June, the TCA launched an investigation into technology major Apple, focusing on whether their App Store practices violate Turkish Competition Law. Key concerns include Apple's policies that prohibit developers from using alternative payment methods in the App Store and enforcement of anti-steering measures aimed at mobile application developers. These actions are under scrutiny to determine if they constitute an abuse of dominant position in the relevant market.
The TCA made the following analyses regarding the investigation:
- Restrictions on informing users: Apple currently prohibits application developers from informing consumers about alternative payment methods available outside of the app, such as on their websites. This restriction raises questions about whether customers are being deprived of better options and price comparisons between in-app and external payment methods.
- Blocking in-app links: Apple disables in-app links that redirect customers to different payment systems. Furthermore, developers are required to use Apple's own payment mechanism, known as IAP, for in-app purchases, which carries a 30% commission. This has raised concerns about whether Apple is limiting the options available to developers and keeping alternative payment methods out of the Apple ecosystem.
You can find our article on this TCA investigation here.
Google's Turkish hotel search saga: Daily fine ends as compliance achieved
On 10 June, the TCA announced that Google fulfilled its obligations with respect to the local search service for hotel queries, concluding a process initiated on 15 April 2024, as previously noted in the last issue of Quick Read. Despite Google’s proposed remedies, including new designs for local search services, the TCA found that these were not fully implemented for hotel queries.
Consequently, the TCA decided that Google will be subject to an administrative fine of 0.05% per day of its 2023 gross revenues starting from 15 April 2024. The fine totalled TRY 186 million (approximately USD 5.7 million) for the period from 15 April 2024 to 21 May 2024, when Google finally met its obligations with respect to the local search service for hotel queries. The daily administrative fine was ceased upon confirmation of compliance.
You can find our article on this TCA decision here.
Canon Eurasia hit with a fine for RPM practices
An investigation into Canon Eurasia was conducted to determine if they violated Article 4 of the Turkish Competition Law by engaging in resale price maintenance (“RPM”) of Canon-branded products.
Following deliberations on 12 June 2024, the TCA concluded that Canon Eurasia did indeed violate Article 4 of the Competition Law through RPM practices and imposed an administrative fine of TRY 38,300,958.83 (approximately USD 1,171,818) for these violations.
New investigations
- Roche Turkey – 12 June 2024: The Ankara District Administrative Court's annulment of a previous decision has led the TCA to initiate a new investigation into Roche Turkey. The investigation aims to determine potential violations of Competition Law, focusing on allegations from the annulled decision that Roche abused its dominant position by restricting its depots, except Beser Ecza Deposu, from participating in SSK (Social Security Institution) tenders for biotechnology products. The investigation also examines accusations related to market allocation, price fixing, and discriminatory practices among depots.
- İtameks and Özelcan – 13 June 2024: A full-fledged investigation was launched against İtameks and Özelcan, which are active in the distribution and sale of baby supplies, with the allegations of applying RPM on their dealers and imposing various competition restrictions.