Settlement

Settlement is the procedure added to Law No. 4054 in 2020 and governed by the Settlement Regulation. It allows the Competition Board to settle with undertakings that acknowledge the existence and scope of an infringement after an investigation has been opened, and to conclude the investigation.

When and How?

Settlement may arise after an investigation is opened and until the investigation report is served, at the request of the undertaking or on the Board’s initiative. During the process, the Authority discloses to the undertaking the content of the allegations and the likely range of the fine. If the undertaking accepts, it submits a settlement text acknowledging the existence and scope of the infringement, and the Board takes its final decision.

Reduction

In case of settlement, the administrative fine is reduced by between ten and twenty-five per cent. In cartel cases, the reduction obtained under active cooperation and the settlement reduction may be applied together.

Consequences

• Acknowledgement: The undertaking acknowledges the infringement and its scope.
• No appeal: The matters in the settlement text and the fine imposed on settlement cannot be challenged in court by the parties.
• Damages risk: The acknowledged infringement is strong evidence in treble damages actions brought by those harmed.

The settlement decision should therefore be taken considering not only the fine reduction but also possible damages actions, the company’s reputation and the chances of winning an annulment action. In recent years the Board has frequently used settlement, particularly in vertical infringements such as resale price maintenance.