Competition Law
Today, competition law is of great importance to ensure the sustainability of the market economy and to protect consumer rights. One of the main objectives of competition law is to ensure that businesses act in accordance with the principles of fair competition under free market conditions. Senkur Law and Attorney Pelşin Senkur, operating in Izmir, provides comprehensive legal advice and support to individuals and businesses in the field of competition law.
What is Competition Law?
Competition law includes the legal rules enacted to ensure the functioning of the free market economy and to prevent monopolization and unfair competition. It aims to create a fair competitive environment by preventing businesses from abusing their power over the market. Competition law provides consumers with access to a variety of products and services at more affordable prices, and fosters an environment that supports innovation and quality competition among businesses.
One of the most important regulations in the field of competition law in Turkey is the Law on the Protection of Competition, which entered into force in 1994. Under this law, the Competition Authority was established to ensure and protect competition and to prevent violations. Activities that constitute a violation under competition law are examined under headings such as cartelization, abuse of dominant position, mergers and acquisitions.
Basic Principles of Competition Law
Competition law is based on several fundamental principles to ensure fair competition and free market conditions. Some of these principles are:
Prohibition of Cartels: Cartels are situations where businesses restrict competition by agreeing among themselves on issues such as price, production or market division. Cartelization restricts the consumer's freedom of choice and causes prices to rise artificially. Competition law ensures the maintenance of price competition in the market by prohibiting the formation of cartels.
Prevention of Abuse of Dominant Position: Another principle of competition law is to prevent businesses with a large share in the market from using their dominant position to exclude competitors or harm consumers. A company in a dominant position may not take actions that make it difficult for competitors to enter the market or that exclude small businesses from the market by artificially lowering prices.
Controlling Mergers and Acquisitions: Mergers and acquisitions between businesses are important events that can affect market dominance and competition conditions. Competition law monitors large mergers and acquisitions and intervenes if these transactions restrict competition in the market.
Prevention of Unfair Competition: Unfair competition refers to unethical or unlawful behavior by businesses to put their competitors in a difficult situation. Such actions can harm both competing businesses and consumers.
Competition Law Violations
Competition law covers many violations in order to protect fair competition in the market. Below are some of the main violations under competition law and their consequences:
1. Cartels and Agreements
Forming a cartel is when businesses make deals with each other by sharing prices, production quantities or markets. Cartels cause consumers to face high prices and reduce diversity in the market. For example, if all firms in a sector adopt the same price policy and fix their prices, this constitutes a violation of competition.
Competition law imposes severe sanctions against cartel formation. In Turkey, the Competition Authority imposes high fines on businesses that form cartels and takes measures to stop cartelization activities.
2. Abuse of Dominant Position
Dominant position means that an entity has a significant share of the market. However, dominant businesses cannot abuse their dominant position to exclude competitors or harm consumers. For example, a technology company may use its market dominance to block competitors' products or deny consumers an alternative choice.
Abuse of a dominant position is usually punishable by high fines. In addition, the Competition Authority may intervene in such situations to restore the balance in the market.
3. Mergers and Acquisitions
Mergers and acquisitions are another issue closely monitored in competition law. Since mergers and acquisitions between businesses may affect competition in the market, such transactions are supervised by competition authorities. If a merger or acquisition would have a restrictive effect on competition, it may be blocked or approved under certain conditions.
The Competition Authority ensures the protection of competition in the market by examining mergers and acquisitions above a certain turnover threshold in advance.
Competition Law and Consumer Rights
One of the main objectives of competition law is to protect consumer rights. A healthy competitive environment among businesses under free market conditions offers consumers more choice and more affordable prices. Competition law prevents monopolization and unfair competition in the market, and thus, it protects the interests of consumers.
Consumer Benefits
Price Stabilization: Competition law ensures that prices are set under free market conditions. This prevents consumers from facing excessively high prices.
Quality Improvement: Competition among businesses encourages a race to offer better quality products and services to consumers.
Innovation and Diversity: Competition forces businesses to develop new products and services, giving consumers more choice.
Implementation of Competition Law in Turkey: The Role of the Competition Authority
In Turkey, the Competition Authority plays a critical role in enforcing competition law and monitoring violations. Established in 1994, the Competition Authority operates to ensure and protect competition in markets based on the Law on the Protection of Competition.
The Competition Authority reviews and approves mergers and acquisitions of companies or may reject them under certain conditions. It also protects fair competitive conditions in the market by imposing severe sanctions against competition violations such as cartelization or abuse of dominant position.
Competition Authority's Powers
The Competition Authority may use its supervisory and enforcement power over the market in the following ways:
Conducting Investigations and Research: Investigate competition violations in the markets and initiate legal proceedings when necessary.
Imposing Fines: It may impose fines against competition violations.
Taking Measure Decisions: When a violation is detected, it may take measures to stop the activities of businesses.
Professional Support in Competition Law with Senkur Law in Izmir
Competition law is a field that involves complex legal processes and severe sanctions. Operating in Izmir, Senkur Law and Attorney Pelşin Senkur provide effective support to businesses in all legal processes that they may encounter in the field of competition law. Senkur Law provides professional legal advice to its clients in the following areas:
Supervision of Cartels and Agreements: Ensuring that companies enter into agreements in compliance with competition law and taking legal measures against cartel formation are among the services offered by Senkur Law. Senkur Law supports its clients in analyzing suspected cartel agreements and preventing legal risks.
Prevention of Abuse of Dominant Position: Senkur Law guides businesses that have a dominant position in the market to use this power within legal limits. Provides strategic consultancy services to minimize the risk of abuse of dominant position and prepares internal compliance programs in this context.
Evaluation of Mergers and Acquisitions in terms of Competition Law: Senkur Law provides the necessary legal support to companies during the merger and acquisition process. It analyzes whether the mergers and acquisitions are in compliance with competition law and analyzes the possible risks before the transaction. Thus, it contributes to the development of growth and expansion strategies in accordance with the rules of competition.
Follow-up of Unfair Competition Lawsuits: Senkur Law provides legal consultancy services to businesses exposed to unfair competition or seeking protection against violations of competition law, and effectively represents its clients in litigation processes. Provides professional support in filing lawsuits or defending existing lawsuits to prevent unfair competition.
Competition Law Compliance Programs: Senkur Law prepares special compliance programs to ensure that businesses act in compliance with competition law rules, thus minimizing the legal risks of companies. Through these programs, businesses inform and train their employees and management staff on how to act in compliance with competition law.
Advantages of Competition Law Compliance for Companies
Companies that operate in compliance with competition law not only avoid legal sanctions, but also gain reputation in the market and increase consumer confidence. Companies through competition law compliance programs:
Minimizes Legal Risks: Reduced likelihood of facing fines and lawsuits for competition violations.
Gains Reputation and Trust: Companies that act in accordance with the principles of fair competition gain trust from consumers and business partners.
Strengthens Market Position: A transparent and lawful operating structure strengthens the market position of businesses.
Conclusion: A Sustainable and Fair Market with Competition Law
Competition law is of great importance for the healthy functioning of markets, the protection of consumers and the promotion of innovative business models. Compliance with competition law rules is not only about fulfilling legal obligations; it is also a critical element for long-term success and sustainable growth.
Senkur Law and Attorney Pelşin Senkur, operating in the field of competition law in Izmir, provide services to ensure legal compliance of companies, ensure their protection against competition violations and provide effective support in legal processes. Given the complex structure and severe sanctions of competition law, the professional advice provided by Senkur Law plays an important role for companies to operate confidently in the market.
Providing reliable and comprehensive legal support at every stage of competition law, Senkur Law contributes to the success of its clients in competitive market conditions with the solutions it offers. For businesses in Izmir looking for a comprehensive guide on competition law, Senkur Law stands out as a reliable advisor in legal compliance, risk management and litigation processes.