Exemption and Negative Clearance in Turkish Competition Law

Not all agreements that restrict competition are illegal. Under Turkish Law, agreements that provide economic benefits may be granted Exemption (Muafiyet) or Negative Clearance (Menfi Tespit).

1. Negative Clearance (Menfi Tespit)

This is a confirmation by the Board that a specific agreement or practice does not violate Articles 4, 6, or 7.

• It provides legal certainty.
• If you are unsure if your contract clause (e.g., a non-compete) is valid, you can apply for Negative Clearance.

2. Exemption (Muafiyet)

An agreement that does restrict competition (violates Article 4) can still be legal if it meets the Four Cumulative Conditions of Article 5:

1. Improvement: The agreement must ensure new developments or improvements in the production or distribution of goods/services.
2. Consumer Benefit: The consumer must receive a fair share of the resulting benefit.
3. Proportionality: The competition restriction must be necessary to achieve the improvement (not wider than needed).
4. No Elimination: The competition must not be eliminated in a significant part of the market.

If all four are met, the Board grants an Individual Exemption.

3. Block Exemptions

To reduce the workload, the Board issues “Block Exemption Communiqués” for common agreement types. If your agreement fits the template, it is automatically exempt (no application needed).

• Vertical Block Exemption (2002/2): For distribution agreements involving valid non-competes (max 5 years) and exclusive territories. Crucially, the market share of the supplier must be under 30% (previously 40%).
• R&D Block Exemption
• Technology Transfer Block Exemption

Self-Assessment

Since 2005, the notification system is voluntary. Companies must conduct a Self-Assessment to see if they fall under a Block Exemption. If they get it wrong, they face fines. Therefore, legal review of distribution contracts is vital.

Professional Legal Support

Contact us for professional legal assistance on this matter.

📞 Call Now: +90 332 351 51 52

📧 Email: info@avukatfevziyaskir.com

📍 Address: Opposite the Courthouse, Karatay/Konya, Turkey

⚖️ Attorney Fevzi Yaşkir - Licensed attorney at Konya Bar Association providing legal consultation and case management services for international clients.