Competition Authority

Competition Authority is an autonomous body responsible for establishing, preserving, and enhancing a competitive environment in the markets for goods and services in Türkiye. Law No. 4054 on the Protection of Competition was adopted in 1994, and the Competition Authority began operational activities in 1997. This meant fulfilling the state’s duty under Article 167 of the 1982 Constitution to prevent monopolization and cartelization in markets. The Authority’s primary role is to prevent threats to the competitive process by exercising the powers granted to it by law.

The fundamental principle of a market economy is the assumption that economic relationships are driven by competition. Economically, competition can be defined as the race among sellers in a market to acquire more customers and thereby increase sales and profits [cite: 2]. This phenomenon forms the basis of an efficiently functioning market system; it safeguards the independence of market actors’ decisions and their pursuit of personal interests while ensuring social justice and economic efficiency. Liberalized markets carry the risk of destructive competition or harmful collaborations and exploitative practices by dominant firms, necessitating state intervention. Such anti-competitive behaviors can also restrict entrepreneurial freedom and undermine democratic rights. The existence of a competition law and an effective institution to enforce it aims to resolve these issues. Competition authorities are tasked with preventing actions and practices by enterprises that distort effective competitive conditions, thereby securing entrepreneurial freedom and enhancing social welfare through the efficient allocation of resources.

The primary legal basis for the Authority’s activities is Law No. 4054 on the Protection of Competition. Adopted on 7 December 1994, this law aims to prevent agreements, decisions, and practices that restrict, distort, or hinder competition in markets for goods and services, as well as to prevent dominant enterprises from abusing their market power through necessary regulation and oversight. The law covers all types of enterprises operating within the borders of the Republic of Türkiye or affecting its markets for goods and services, including anti-competitive agreements, practices, and decisions among them, abuse of dominance by dominant enterprises, and any legal acts or behaviors that result in mergers or acquisitions significantly reducing competition. Its key objectives include prohibiting cartels and other restrictions on competition, preventing abuse of dominant positions, and controlling specific mergers and acquisitions to prevent monopolies. The fundamental aim of the Competition Authority is to ensure and preserve competition in markets through the implementation of this law.

The mission of the Competition Authority:

• Prevent cartelization and monopolization.
• Enhance consumer welfare.
• Contribute to the healthy functioning of market mechanisms.
• Support the enhancement of international competitiveness.
• Ensure a healthy investment environment by reducing entry barriers.

In line with this mission, the Authority aims to:

• Monitor, regulate, and supervise markets to prevent agreements that restrict competition, abuse of dominant positions, and mergers or acquisitions that significantly reduce competition.
• Promote a competition culture and take necessary measures to ensure that public decisions and actions are aligned with a competitive approach [cite: 22].
• Conduct research, develop policies, and contribute to the formulation of macroeconomic policies from a competition policy perspective. The efficient allocation of resources and the enhancement of social welfare through the preservation of a competitive process form the foundation of the Authority’s mission.

The Authority’s vision is to be an effective institution on international platforms that supports sustainable growth and development, promotes innovation, diversity, efficiency, and quality to the highest levels, fosters a widespread competition culture, creates a functional competitive environment, and provides intellectual, economic, and administrative contributions within this scope.

In carrying out its duties, the Competition Authority adheres to the following core values:

• Impartiality: Maintaining equal distance from all stakeholders in all processes and decisions, basing decisions solely on the concrete circumstances of the factual situation, evidence gathered during investigations, and findings made.

• Predictability: Performing duties consistently within the framework of applicable legislation, procedures, and principles, and establishing a predictable system of application guided by global developments, free market principles, rational justifications, and concrete data to ensure the most competitive and optimal market conditions.

• Accountability: Sharing decisions, information, and expertise with the public within a defined framework. Administrative sanctions imposed by the Authority may be challenged before competent administrative courts, and its revenues and expenditures are periodically reviewed by units established by law.

• Rapid Decision-Making: Continuously reviewing decision-making processes to ensure decisions are accurate, understandable, and effective, and exercising utmost care to ensure all procedures and decisions are made swiftly and correctly.

• Participation: Conducting activities in active cooperation with relevant individuals and institutions, and taking into account views obtained from these stakeholders in the decision-making process.

• Expertise: Carrying out activities within its authority and responsibility using competent human resources based on expertise and merit.

• Efficiency: Paying close attention to conducting activities using allocated resources in an effective and productive manner.

The Competition Authority is a public legal entity with administrative and financial autonomy. It is affiliated with the Ministry of Trade but operates independently in carrying out its duties. No authority, office, body, or individual may issue orders or instructions intended to influence the Authority’s final decisions. The Authority’s headquarters are located in Ankara.

Its structure consists of:

1. Competition Board
2. Presidency
3. Service Units

The Competition Board is the decision-making body of the Authority. It consists of seven members appointed by the President of the Republic, one of whom serves as Chairman and another as Deputy Chairman.

The Board’s main duties and powers are as follows:

• On application or ex officio, examine, investigate, and conduct inquiries regarding activities and legal procedures prohibited under this Law; upon finding violations of the provisions of this Law, take necessary measures to cease such violations and impose administrative monetary penalties on those responsible.

• Evaluate requests for exemptions and negative determinations from interested parties and issue exemption certificates or negative determination certificates where appropriate.

• Continuously monitor the markets affected by granted exemptions and negative determination certificates, and re-evaluate applications if changes are detected in those markets or in the circumstances of the parties involved.

• Authorize mergers and acquisitions.

• Appoint Deputy Chairmen and Chief Legal Advisor upon proposal by the Chairman.

• Issue notifications and make necessary regulations concerning the implementation of this Law.

• Provide opinions, directly or upon request by the Ministry, regarding necessary amendments to legislation relating to competition law.

• Monitor the legislation, practices, policies, and measures of other countries regarding agreements and decisions that restrict competition.

• Determine and monitor the Authority’s personnel policy; approve the annual budget, final income and expenditure accounts, and annual work program prepared by the Presidency; and decide on transfers between budget items if necessary.

• Issue an annual report on its activities and developments in its areas of responsibility.

• Review and decide on proposals regarding purchases, sales, and rentals of movable and immovable property and fixed assets, and make necessary regulations on these matters.

• Make decisions regarding all matters relating to the Authority’s claims, rights, and obligations vis-à-vis third parties.

• Perform other duties assigned by law.

The Presidency consists of the Chairman of the Board, the Deputy Chairman, and the Deputy Chairmen. The Chairman of the Board is the highest authority of the Authority and is responsible for its general administration and representation.

The duties and powers of the Presidency are as follows:

• Ensure the highest level of organization and coordination for the harmonious, efficient, disciplined, and orderly functioning of the Competition Board and service units, and resolve any conflicts regarding duties and powers among the Authority’s service units.

• Determine the agenda, date, and time of Board meetings and preside over them.

• Ensure implementation of Board decisions and monitor their execution.

• Finalize proposals received from service units and submit them to the Board.

• Prepare the Authority’s annual budget, final income and expenditure accounts, and annual work report, submit them to the Board, and ensure the implementation of the budget, collection of revenues, and execution of expenditures.

• Provide opinions on decisions regarding competition policy and relevant legislation.

• Manage and coordinate the Authority’s relations with the Ministry and other institutions.

• Represent the Authority before official and private institutions.

• Ensure the publication of the Board’s final decisions and notifications and regulations prepared by the Authority.

• Determine the duties and powers of personnel authorized to sign on behalf of the Chairman of the Board.

• Appoint personnel of the Authority, excluding Deputy Chairmen and the Chief Legal Advisor.

Service units consist of main service units organized as directorates, advisory units, and auxiliary service units. These units carry out the Authority’s daily technical and administrative tasks.

To achieve its objectives, the Competition Authority undertakes the following core activities:

• Combating Anti-Competitive Practices: Imposes penalties on enterprises that distort, restrict, or hinder competition in markets through detailed examination and investigation processes. This includes addressing violations of Article 4 (agreements restricting competition, concerted practices, and enterprise decisions), Article 6 (abuse of dominant position), and Article 7 (mergers and acquisitions significantly reducing competition) of Law No. 4054.

• Exemptions and Negative Determinations: Grants exemptions to agreements that conflict with competition rules but contribute to the economy and benefit consumers, and establishes secondary regulations for such agreements. It may also issue negative determination certificates demonstrating that an agreement, decision, or practice does not contravene the relevant provisions of the law.

• Merger Control: Reviews mergers, acquisitions, and joint ventures above a certain size to prevent monopolization in markets.

• Privatization Oversight: Examines the transfer of public enterprises to the private sector during privatization processes to prevent monopolization in areas abandoned by the state as its economic role diminishes.

• Competition Advocacy: Submits opinions to relevant public institutions and organizations regarding laws and regulations that may negatively affect or restrict competition in markets, ensuring that competitive conditions prevail.

The Authority is empowered to request any necessary information from public institutions and organizations, enterprises, and enterprise associations, and to conduct on-site inspections at the premises of enterprises and enterprise associations.

The Competition Authority was established pursuant to Article 20 of Law No. 4054 to ensure the formation and development of free and healthy competitive conditions in markets for goods and services, and to supervise the implementation of this Law and carry out the duties assigned to it by the Law.