Undertaking

Also known as: Economic Entity, Company under Competition Law, Teşebbüs

In short

An economic unit that produces, markets or sells goods or services in the market and can make independent decisions; all prohibitions and obligations of competition law are directed at undertakings.

Law No. 4054 on the Protection of Competition defines undertakings as natural and legal persons that produce, market or sell goods or services in the market and units that can make independent decisions and form an economic whole (Article 3). All prohibitions of the Law, namely those on anti-competitive agreements, abuse of dominance and unauthorised mergers and acquisitions, are directed at undertakings.

The Economic Activity Test

A unit need not be a company to be an undertaking; what matters is that it carries out economic activity by offering goods or services in a market. The following may therefore be undertakings:

Joint stock and limited liability companies,
Sole proprietorships and tradespeople,
Self-employed professionals such as doctors, lawyers and architects,
State economic enterprises and municipal companies,
Foundations, cooperatives and associations to the extent they carry out economic activity.

By contrast, public bodies exercising sovereign powers are not undertakings in respect of those activities.

Difference from Associations of Undertakings

Associations, chambers, unions and federations formed by undertakings are associations of undertakings. Their decisions and recommendations are also subject to competition rules.

Group Companies

Companies under the same control are treated as a single undertaking even though they are separate legal entities. For the consequences, see Single Economic Unit.

Frequently Asked Questions

Is an association or professional chamber an undertaking?

If it does not carry out economic activity itself, it is not an undertaking but an association of undertakings. Decisions and actions of associations of undertakings are also subject to competition rules.

Is a self-employed doctor or lawyer an undertaking?

Yes. Self-employed professionals offer their services in the market for a fee and are therefore undertakings for competition law purposes. Decisions of professional bodies such as minimum fee tariffs are therefore subject to competition law.

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