183 / 516
position and examines the market shares of the Parties between the
years 2007 and 2010 in the HDD general market and in the markets for
mobile applications, desktop and corporate solutions. The Board, as a
result of the examination that it has conducted, decided that Seagate
will acquire an important market power within Turkey.
As it can be seen, the Board dos not clearly determine whether
Seagate will be in a dominant position or will strengthen its dominant
position after the acquisition. The Board has probably not made a clear
determination because the consequences of both assumptions are the
same. As a matter of fact, regardless of whether Seagate reaches a
dominant position or strengthens its dominant position after the trans-
action, the second test will apply. However, even if the consequences
are the same, it would have been better to make a clear determination
to ensure the clarity and definiteness in law.
Test of Significant Lessening of Competition
In order to determine whether the merger transaction will cause a
significant lessening of competition in the relevant market or not, the
Board takes into account various criteria.
Positive Effects to be Created in the Relevant Product Market
by the Transaction
As a result of interviews realized with undertakings, the Board
concluded that, except national computer producers, most of the under-
takings will not be negatively influenced by this transaction. Indeed,
even after the transaction, both Western Digital and Toshiba will con-
tinue to be important actors in the relevant product market. Moreover, the
facts that the final products of HDD constitute a low percentage of its
costs and that price differences between HDD producers are extremely
low, will reduce negative effects of the transaction on competition.
Negative Effects to be Created in the Relevant Product Market
by the Transaction
As a result of interviews realized with undertakings, the Board has
determined that the said transaction may reduce the negotiating power
in relation to the price and supply of computer producers which use
COMPETITION LAW
169