October 2024 – This issue of Quick Read provides an overview of key decisions, announcements, and developments from the Turkish Competition Authority (“TCA”) regarding competition law in September 2024.
Dive into September updates
1. New guidelines from the TCA: Ensuring fair play in labour markets
The TCA announced new Draft Guidelines on Competition Violations in Labour Markets (“Draft Guidelines”) addressing the increasing focus on competition issues within labour markets. The Draft Guidelines aim to clarify potential labour market violations under Turkish Competition Law.
The TCA’s announcement highlights a critical structural characteristic of labour markets: a small number of employers competing for a large workforce. This imbalance can lead to employer-favoured practices concerning wages and other working conditions. Moreover, anti-competitive behaviours among employers regarding employee mobility and remuneration can exacerbate these existing disparities.
The Draft Guidelines seek to establish fundamental principles regarding:
- the significance of activities between undertakings in the labour markets within the framework of Turkish Competition Law;
- the types of violations that may occur in labour markets within the framework of Article 4 of Turkish Competition Law (including agreements, concerted practices and decisions limiting competition) and how the TCA evaluates such violations, and the issues to be considered by third parties regarding the relevant violations;
- the criteria for ancillary restraints in agreements among competition in labour markets;
- the applicability of Articles 5, 6 and 7 of Turkish Competition Law concerning agreements and actions in labour markets.
The full text of the Draft Guidelines on Competition Violations in Labour Markets is available here (in the Turkish language only).
2. Merger and acquisition transactions
In September 2024 the TCA approved 18 merger and acquisition transactions and one privatisation transaction. Additionally, the TCA issued one negative clearance decision and three decisions indicating transactions that are not subject to approval.
New investigations
- Investigation of three cosmetic companies – 3 September 2024: The TCA initiated a full-fledged investigation into three Turkish cosmetic companies—Forever Living Sağlık ve Güzellik Ürünleri, Herbalife International Ürünleri and Homm Bitkisel Ürünler—for alleged violations of Article 4 of the Turkish Competition Law concerning agreements, concerted practices and decisions limiting competition.
- Investigation of certain elevator companies – 10 September 2024: A full-fledged investigation was launched into certain companies operating in the field of elevator maintenance and repair with alleged violations of Article 4 of the Turkish Competition Law (agreements, concerted practices and decisions limiting competition) in the elevator maintenance and repair services market.
- Investigation of Mars Group – 16 September 2024: The TCA initiated a full-fledged investigation into Mars Entertainment Group and Cj Enm Medya, which together form Mars Group, alleging that Mars Group violated Article 6 of the Turkish Competition Law (abuse of dominant position) in the production and distribution services market by abusing its dominant position in the cinema screening services market.
- Investigation of Adidas Turkey – 20 September 2024: Following a court ruling that annulled the TCA’s prior decision not to initiate an investigation, the TCA has decided to launch a full‑fledged investigation into Adidas Turkey.