Fundamentals of Turkish Competition Law: Law No. 4054

Law No. 4054 on the Protection of Competition is the primary legislation governing fair market practices in Turkey. Enacted in 1994 and modeled closely after EU Competition Law (Articles 101 and 102 TFEU), it aims to prevent the distortion of competition in markets for goods and services.

The law stands on three main pillars:

1. Prohibition of Anti-Competitive Agreements (Article 4)

This article corresponds to Article 101 TFEU. It prohibits agreements, concerted practices, and decisions of associations of undertakings that have the object or effect of preventing, restricting, or distorting competition.

Cartels: Price-fixing, market sharing, and output restriction are “hard-core” violations causing the highest fines.
Vertical Restraints: Resale Price Maintenance (RPM) - forcing distributors to sell at a fixed price - is also strictly prohibited.

2. Abuse of Dominant Position (Article 6)

This article corresponds to Article 102 TFEU. It prohibits undertakings holding a dominant position from abusing this power.

See our separate article on Abuse of Dominance for details.

3. Merger and Acquisition Control (Article 7)

Article 7 mandates that mergers and acquisitions exceeding certain turnover thresholds must be notified to and approved by the Competition Board before closing.

Gun Jumping: Implementing a merger without approval is subject to fines and the transaction is legally void.

Modernization

In 2020, Law No. 4054 was significantly amended to align further with the EU:

De Minimis: The Board can now choose not to investigate minor infringements (excluding hard-core cartels).
Commitment Mechanism: Companies can offer commitments to close investigations without fines.
Settlement: Companies can admit guilt for a reduced fine (up to 25% reduction).

Conclusion

Turkish Competition Law is dynamic and strictly enforced. Whether you are a multinational entering the market or a local SME, compliance with Article 4 (Agreements) and Article 6 (Dominance) is non-negotiable to avoid severe penalties.

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