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NEWS LETTER 2 0 1 0
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The Concept of Cartel within the Scope of Competition Law
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Introduction
In a broad sense, the aim of Competition Law is the protection of
competition. In this context, agreements, practices, and decisions between
undertakings and associations of undertakings which prevent, distort or
restrict competition are prohibited pursuant to Article 4 of the Act on the
Protection of Competition (hereinafter referred to as the “Competition
Act”). Even though an agreement between the undertakings cannot be
determined if there are direct or indirect relations that provide a coordination
or practical cooperation between undertakings which replaces their own
independent behavior resulting in the same preventive manner then these
would also be prohibited pursuant to the Article mentioned above.
Many times, undertakings establish an association aiming to deal
with their common problems. These sometimes conclude decisions which
prevent competition between their members and cause these members
to earn higher income. These kinds of decisions violate the competition
system and are therefore prohibited.
Agreements that prevent competition can be horizontal or vertical.
Agreements concluded in the same level directly between the competitors
are horizontal agreements, and they
per se
have anti-competitive effects.
Cartels occur within the framework of horizontal agreements.
I.
The Cartel Concept
Cartels are one of the occurrences of anti-competitive agreements.
Pursuant to Article 3/ç of the Regulation on Fines to Apply in Cases of
Agreements, Concerted Practices, and Decisions Limiting Competition
and Abuse of Dominant Position (hereinafter referred to as the “Fines
Regulation”) and Article 3/c of the Regulation on Active Cooperation For
Detecting Cartels (hereinafter referred to as the “Leniency Regulation”),
cartels are defined as competition-restrictive agreements and/or concerted
practices between competitors for;
•
fixing prices
•
allocation of customers, providers’ territories, or trade channels
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Article of February 2010