Competition Fines

Also known as: Antitrust Fines, Turnover-Based Fines, Rekabet Cezası

In short

Administrative fines under Law No. 4054 of up to ten per cent of annual gross revenue for undertakings and up to five per cent of the undertaking's fine for managers and employees.

Article 16 of Law No. 4054 governs the administrative fines imposed for breaches of competition rules. Fines are set under the Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting Competition, and Abuse of Dominant Position.

Substantive Infringements

For anti-competitive agreements, abuse of dominance and prohibited mergers, undertakings may be fined up to ten per cent of their annual gross revenue at the end of the financial year preceding the final decision. Managers and employees found to have had a decisive influence on the infringement may also be fined up to five per cent of the undertaking’s fine.

In setting the fine, the type and gravity of the infringement, its duration, the undertaking’s market power, the benefit gained and the harm caused are considered. The Regulation provides a higher base rate for cartels than for other infringements; aggravating factors such as recidivism or failure to cooperate, and mitigating factors such as cooperation or having been coerced into the infringement, increase or decrease the fine.

Procedural Infringements

Obstructing a dawn raid or providing false or misleading information: five per thousand of annual gross revenue; in addition, a periodic fine of five per ten thousand for each day after the period set by the Board expires.
Implementing a notifiable merger or acquisition without clearance, i.e. gun jumping: one per thousand of annual gross revenue.
Failing to comply with commitments also attracts a separate fine.

Reductions

Immunity or reduction under active cooperation,
A reduction of ten to twenty-five per cent on settlement,
A one-quarter reduction if the fine is paid within one month of service; payment does not affect the right to bring an action.

Frequently Asked Questions

Do we lose the right to appeal if we pay the fine?

No. If the fine is paid within one month of service, a one-quarter reduction applies, and payment does not affect the right to bring an action. If the action succeeds, the amount paid is refunded.

What turnover is the fine based on?

As a rule, the annual gross revenue at the end of the financial year preceding the final decision; if this cannot be calculated, the revenue for the financial year closest to the decision date. Turnover may be assessed on a single economic unit basis.

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