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ation of the economic unit to be acquired before the transaction.

Goods and services that have mostly completed development

phase but not yet entered marketing phase may be included

within this framework.

In terms of Geographic Area.

Non-compete obligations must

be limited geographically to the area of operation of the seller

before the transaction. However, in exceptional circumstances,

such as when the seller has made investments to enter into new

regions, restraints concerning these regions may also be accept-

ed as necessary and reasonable.

In terms of Person.

Restraints concerning the seller itself and

those economic units and agencies which constitute an eco-

nomic unit with the seller may be accepted as reasonable while

any non-compete obligations beyond them, especially those

concerning the dealers of the seller or users, shall not be accept-

ed as necessary and related restraints.

For an extended period the Board, on one hand, audits whether the

scope of the ancillary restraint is reasonable or not, and on the other

hand it especially investigates the persons to whom the restraint is

related, subjects of the restricted activities and geographic area where

the restriction is applied

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.

Reasonable Period.

The Guideline provides that non-compete

agreements that do not exceed three years in duration are generally

accepted as reasonable. Nevertheless, it may be possible to accept

under the framework of ancillary restraints a non-compete obligation

with a duration longer than three years where a customer tie-in lasts

longer or it is required by the nature of the know-how transferred, pro-

vided that the scale required by the concrete case is not exceeded.

COMPETITION LAW

155

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For detailed information see: The Board decision dated 16.04.2002 and numbered 02-24/242-

97, dated 03.04.2003 and numbered 03-22/247-108, dated 04.06.2012 and numbered 12-

33/936-292, dated 08.07.2012 and numbered 12-38/1079-338 and dated 20.09.2012 and num-

bered 1339-445.

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For detailed information see: The Board decisions dated 20.02.2003 and numbered 03-11/118-

55; dated 31.12.2003 and numbered 84/1021-409 and dated 04.11.2010 and numbered 10-

69/1454-554.