BASEAK CORE Paper No: 16 – Economic analysis of the practices of the Turkish competition authority in terms of the principle of legal certainty – Antitrust law/competition law

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Turkey: BASEAK CORE Paper No: 16 – Economic analysis of the practices of the Turkish competition authority in terms of the principle of legal certainty

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We would like to introduce you to the sixteenth series of articles from BASEAK CORE Papers!

While the Turkish Competition Authority (“the TCA“) has extensive fact-finding powers, companies are expected to be able to conduct their business in accordance with the lawful and foreseeable usages of the ACT. In this regard, the ACT must comply with the the principle of legality and legal certainty, which are governed by the Turkish Constitution, in its administrative acts and actions. However, it is clear that the principle of legal certainty is not respected with regard to certain practices of the TCA as well as of its decision-making body, the Competition Council.

This environment of uncertainty, on the other hand, can harm business investment incentives as it would be impossible to understand which behaviors will attract TCA’s attention. Indeed, changes to the rules after an investment has been made can pose a problem in terms of receiving the benefits of that investment. As a result, in the short term, market players; in the medium term, the number of players and the market itself; and in the long term, the macroeconomic variables would be damaged. While the Competition Council may deviate from its precedent, its deviation must nevertheless be based on justifiable reasons. Otherwise, one can wonder if the principle of legal certainty has been violated.

Ensuring the legal certainty of competition law practices is closely linked to establishing a balance between
over-application and
sub-application. If said balance is disturbed, domestic and foreign investments made or intended to be made in Turkey, hence employment opportunities and ultimately social welfare may be negatively affected.

In this issue of the BASEAK CORE Papers Assist series. Professor Y. Sertaç Serter and partner Aysu Tanoglu examine how certain TCA practices violate the principle of legal certainty, and assess in more detail the economic analysis of these violations and their potential effects on the Turkish economy.

To download BASEAK Core Paper No.16, please Click on on this link.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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