July 2024 – This issue of Quick Read provides an overview of the Turkish Competition Authority’s (“TCA”) decisions, announcements, and developments in competition law for July 2024.
Dive into July updates
1. Double impact: Investigations in the glass recycling market
The TCA has intensified its scrutiny of glass manufacturer Şişecam and its subsidiary, Şişecam Çevre Sistemler, for potentially hindering competitors in the glass recycling sector. After a preliminary investigation in 2021, Şişecam offered commitments to the TCA. In 2024, a follow-up inspection led the TCA to launch a full-fledged investigation into compliance with these commitments.
In addition, the TCA initiated a separate, full-fledged investigation against Şişecam’s subsidiary and Karacalar Geri Dönüşüm. This investigation aims to determine whether there has been a violation of competition law through actions such as jointly determining prices for broken glass, allocating regions and customers, and exchanging competitively sensitive information.
2. No fine for Google this time
The TCA investigated the allegation that Google was using its search features to disadvantage competing websites by suppressing them in search results. These features included "videos", "users also asked about this", "translation box", "sports box", and "weather box" which were alleged to reduce traffic to rival websites. The TCA examined whether such practices constituted an abuse of Google’s dominant position in the general search services market.
After the investigation, the TCA decided that although Google holds a dominant position in the general search services market, it did not abuse its position through the specific search features in question. As a result, the TCA decided that there was no basis for imposing an administrative fine on Google.
3. Settlement and commitment for Volta Motor
The TCA conducted an investigation into Volta Motor, a company active in the electric bicycle, motorbike, and car market, regarding allegations of anti-competitive practices including the determination of the resale price of its resellers and the examination of allegations regarding territorial and customer restrictions.
The investigation concluded with a settlement concerning the resale price-fixing allegations. For the territorial and customer restriction allegation, Volta Motor proposed a commitment package, which the TCA accepted. As part of the settlement, Volta Motor was fined TRY 6,584,515.20 (approximately USD 200,000). The TCA also granted Volta Motor three months to comply with the agreed commitments.
New investigations
- Five Chemical Companies – 4 July 2024: The TCA initiated a full-fledged investigation into five Turkish chemical companies—Koruma Klor, 2S Kimya, Aykimsan Kimyasal Ürünler, Irmak Kimya and Süleyman Kimya—for allegedly violating competition law by colluding in price bidding and/or determining the approximate cost in certain public tenders.
Additionally, a separate investigation was launched against Koruma Klor to assess allegations of anti-competitive practices in the chlor-alkali products sector, where it allegedly engaged in exclusionary behaviour that hindered competitors’ activities.
- Koroplast – 12 July 2024: A full-fledged investigation was launched against Koroplast, which operates in the sale and distribution of many products in the categories of cooking, storage and cleaning products such as garbage bags, refrigerator bags, cling film, aluminium foil, ice packs, frozen food bags, cooking paper, cleaning cloths and gloves. The investigation aims to determine whether Koroplast violated competition law by determining the resale prices for its customers.
- Abko Kozmetik – 16 July 2024: The TCA launched a full-fledged investigation into Abko Kozmetik, which operates in the cosmetics and personal care products sector, after a preliminary investigation to determine whether Abko Kozmetik violated competition law by restricting the internet sales of resellers and determining resale prices.
- İntema – 19 July 2024: A full-fledged investigation was launched against Intema, known for its Vitra and Artema brands in the bathroom products sector. The investigation focuses on whether Intema violated competition law by determining the sales prices of its re-sellers and imposing regional/customer restrictions on its re-sellers.
- Otoyol İşletme ve Bakım and ZES – 24 July 2024: Following a preliminary investigation, the TCA launched a full-fledged investigation into Otoyol Isletme ve Bakim and ZES. Otoyol Isletme ve Bakim operates the Oksijen service facilities on the Istanbul-Izmir O-5 Motorway, while ZES is responsible for installing and operating electric vehicle charging stations throughout Turkey.
The investigation focuses on two main issues: (i) whether Otoyol Isletme ve Bakim and ZES engaged in exclusivity practices that could restrict competition in the charging network operation market on the O-5 Motorway, and (ii) whether Otoyol Isletme ve Bakim violated competition law by discriminating between different undertakings within the charging network operation market.