The adaption of competition rules in new and future member states to European Union Law (V) (eBook)

Cover 1
Abbreviations 24
Introduction 26
First Part: The Basis for Harmonizing Turkish and EU Competition Rules 30
First Chapter: The History of Relations between the EU and Turkey 30
A. Turkey’s First Application to the European Union 30
I. The Association Agreement and the Additional Protocol 31
II. Customs Union 33
B. Turkey’s Second Application to the European Union 33
I. Pre-Candidature Developments 34
II. Turkey's European Union Candidacy 35
1. Copenhagen Criteria and Acquis Communitaire 36
2. Negotiations 36
C. Competition Rules Established Through the Relationship between the European Union and Turkey 38
I. Obligation to Approximate Competition Legislation 38
II. Specific Provisions on Competition Matters 39
III. Legal Status of the Association Agreement and the Customs Union Decision 40
1. Legal Status 40
2. Direct Applicability 42
Second Chapter: National Background 45
A. The Development of Turkish Competition Law 45
I. Competition Matters Prior to the Adoption of the Competition Act 45
1. Legislation Applied to Competition Matters 45
2. Draft Acts on Competition Matters 46
II. Legal Basis of the Competition Act 48
1. Constitutional Requirements 49
2. Customs Union Decision 50
III. The Legal Character of Competition Law 50
B. The Structure of the Competition Act 51
I. The Concept of Competition 52
1. Definition 52
2. The “More Economic Approach” Concept 54
II. The Competition Act’s Purpose and Scope of Application 57
1. The Purpose of the Competition Act 57
2. Scope of Application 58
a) Territorial Application 58
b) Personal Application 62
III. Substantive Provisions 63
1. Prohibition of Cartels 63
2. Abuse of Dominant Position 65
3. Merger Control 66
IV. Institutions, Procedures and Sanctions 67
1. Institutions 67
2. Powers of the Institutions 68
3. Judicial Review by the Courts 68
4. Private Law Consequences of the Competition Rules 69
a) Invalidity 69
b) Liability for Damages 70
Second Part: Prohibition of Cartels 72
First Chapter: Scope of the Prohibition 72
A. The principle of prohibition 72
B. Addressees of the Prohibition 73
I. Undertakings 73
1. Definition 73
2. Economic Activity 75
3. Economic Independence 76
4. State Owned Entities 77
II. Association of Undertakings 79
C. Types of Prohibited Conduct 81
I. Agreements 81
1. Concept of Agreement 81
2. Types of Agreements 83
a) Horizontal Agreements 84
b) Vertical Agreements 85
3. Agreements in Specific Conditions 86
a) Unilateral Conduct 86
b) Single Overall Agreement 88
II. Decisions by Association of Undertakings 89
1. Concept of Decision 89
2. Anti-Competitive Practices of Associations of Undertakings 90
III. Concerted Practices 92
1. Concept of Concerted Practice 92
2. Elements of Concerted Practice 93
a) Existence of at Least Two Undertakings 94
b) Parallel Behaviour 94
c) Contact between Undertakings 95
d) Restriction of Competition 96
3. Circumstantial Evidence 97
4. The Relation between Agreements and Concerted Practices 98
Second Chapter: Restriction of Competition 100
A. The Object or Effect of Prevention, Restriction or Distortion of Competition 100
I. Restriction by Object 100
II. Restriction by Effect 101
III. Restriction of Potential Competition 102
IV. De Minimis Doctrine: Appreciable Effect on Competition 103
B. Horizontal Agreements: Cartel Agreements 105
I. Introduction 105
II. Fixing Prices and Other Trade Conditions 105
III. Market Sharing Agreements 107
1. Territorial Allocation of Markets 108
2. Allocation of Customers and Products 108
IV. Limitation and Control of Production 109
V. Prevention of New Entrants and Collective Boycotts 109
VI. Discrimination 110
C. Vertical Agreements 111
I. Introduction 111
II. Distribution Agreements 112
1. Exclusive Distribution 112
2. Selective Distribution 114
3. Resale Price Fixing 115
III. Exclusive Supply Agreements 116
IV. Agency Agreements 117
Third Chapter: Exemption from the Prohibition 119
A. Individual Exemption 119
I. Notification 120
II. The Conditions of Exemption 121
1. Beneficial Effects 121
2. Welfare of the Consumer 122
3. Indispensability of the Restriction 122
4. Preserving the Effective Competition on the Substantial Part of the Market 123
III. Duration of the Exemption 123
B. Block Exemption 124
I. Legal Structure of the Block Exemption Legislation 125
II. The Block Exemption Legislation on Vertical Agreements 126
III. Withdrawal of the Block Exemption 127
Third Part: Abuse of Dominant Position 130
First Chapter: The Principle of Prohibition 130
Second Chapter: Dominance 132
A. Definition of Dominant Position 132
I. Monopoly 132
II. Leading Position 133
B. Determining Dominance 133
I. Relevant Market 133
1. Introduction 133
2. Product Market 135
a) Definition 135
b) Demand Substitution 136
c) Supply Elasticity/Substitution 137
3. Geographic Market 138
II. Market Power 140
1. Market Shares 140
a) Own Market Shares 140
b) Relative Market Shares 141
2. Entry Barriers and Potential Competition 142
C. Collective Dominance 143
Third Chapter: Abuse 146
A. Definition of Abuse 146
B. Special Responsibility of a Dominant Undertaking 148
C. Abusive Practices 148
I. Introduction 148
II. Unfair Prices 149
1. Predatory Pricing 149
2. Excessive Prices 152
3. Price Discrimination 154
a) Definition 154
b) Selective Price Cutting 154
c) Discounts and Rebates 155
aa) Volume Rebates/Discounts 155
bb) Loyalty (Fidelity) Rebates 156
cc) Target Rebate Schemes 157
III. Refusal to Supply 158
1. Refusal to Supply an Existing Customer 159
2. Essential Facilities Doctrine 160
IV. Tying 162
1. Introduction 162
2. Elements of Abuse 163
a) Two Separate Products 163
b) Tying Products 164
c) Sufficient Economic Power 165
d) Restriction of Competition 165
e) Absence of Objective Justifications 166
Fourth Chapter: The Relationship between the Rules on the Prohibition of Cartels and the Abuse of Dominant Position 167
A. Introduction 167
B. Differences between the Prohibitions 168
I. Collusion – Unilateral Behaviour 168
II. Exemption - Objective Justifications 168
Fourth Part: Merger Control 170
First Chapter: Concept of Merger Control 170
A. Introduction 170
I. Aim of Merger Control 171
II. “Merger” or “Economic Concentration” – Broad Definition of Merger 173
B. Characteristics of Mergers 174
I. Change of Control 175
1. Decisive Influence 175
2. Lasting Basis 176
II. Types of Control 177
1. Sole Control 177
2. Joint Control 178
III. Independent Undertakings 180
C. Types of Mergers 181
I. Horizontal Mergers 181
II. Vertical Mergers 182
III. Conglomerate Mergers 183
Second Chapter: Prohibition of Anti-Competitive Mergers 185
A. Mergers Subject to Permission from Competition Authorities 185
I. Turnover thresholds 185
1. General principle 185
2. One-Stop-Shop Principle 189
II. Restriction of Competition 190
1. Dominance 190
2. Substantive Test: SIEC 191
3. Failing Company Defence 193
B. Notification of Concentrations 194
I. Notification 194
1. Implementation of Concentration 195
2. Failure to Notify 196
II. Permission of Competition Authorities 197
1. Suspension Principle 198
2. Conditions and Obligations Attached to Permission 199
3. Ancillary Restraints 200
III. Prohibition of Concentrations 203
IV. Negative Clearance 204
Third Chapter: Powers of Investigation and Enforcement 207
A. Introduction 207
B. Phases of Investigation 207
I. Pre-Notification Contacts 207
II. Preliminary Examination 208
III. Final Examination 210
1. Preliminary Inquiry 210
2. Investigation 210
C. Powers of Investigation 211
I. Information Request 211
II. On-the-spot Inspections 213
III. Administrative Fines and Periodic Penalty Payments 214
1. Administrative Fines 215
2. Periodic Penalty Payments 216
D. Private Law Consequences of Anti-Competitive Mergers 217
I. Validity of Concentrations 217
II. Liability for Damages 218
Fifth Part: Enforcement of Competition Rules 220
First Chapter: Institutions 220
A. Public Enforcement vs. Private Enforcement 220
B. Competition Authorities in the European Union 221
I. Cartel Regulation 1/2003 and Decentralization of the Enforcement of EU Competition Rules 221
II. Commission 223
III. National Competition Authorities 224
C. Turkish Competition Institutions 225
I. Competition Authority 226
II. Competition Board 228
D. National Courts and their Relation with Competition Authorities 229
I. Competition Board – National Courts 230
II. Commission – National Courts 234
Second Chapter: Public Enforcement of Competition Rules 239
A. Enforcement Procedures 239
I. Investigation Process 239
1. Phases of Investigation 240
2. Collection of Evidence: Powers of Investigation 243
a) Request for Information 243
b) On-the-Spot Inspections 244
II. Decisional Process 247
1. Written Statements and Oral Hearings 247
2. Final Decision 248
a) Introduction 248
b) Termination of Infringement 249
c) Administrative Fines and Penalty Payments 251
B. Leniency Programmes 253
I. Introduction 253
II. Types of Leniency 255
1. Immunity from Fines 256
2. Reduction of Fines 257
C. Judicial Review 258
I. Jurisdiction 259
II. Parties in Judicial Review 262
III. Annulment Grounds 262
IV. Effects of Judicial Review on Decisions of Competition Authorities 263
Third Chapter: Private Enforcement of Competition Rules 265
A. Invalidity and Unjust Enrichment 265
B. Liability for Damages 269
Sixth Part: Concluding Remarks 276
Annex 280
Act on the protection of competition (Excerpts) 280
Bibliography 294