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HDD products as intermediate products, particularly local computer

producers.

Effects of the Transaction on Potential Competition

The Board has determined that, in the following years, there may

be some alternative products to HDDs. As a matter of fact, the Board

has identified the Solid State Drive (“SSD”) as a new technology that

can powerfully enter into the market by reason of its superior charac-

teristics such as its rapidity, resistance and battery life in comparison

to HDDs.

In addition to the SSD technology, the Board has also identified

the “cloud computing” technology, which corresponds to the storage of

data in the server of data processing companies in lieu of physical

servers of users as an alternative to the HDDs in the following years.

Finally, the Board has determined that in the following years, the

effects of HDDs in the market will diminish and that SSDs will be an

important alternative to HDDs.

Effects of Foreign Market in the Internal Market

The Board, by taking into account that the parties to the said trans-

action realize their production abroad and sell the products in Turkey

through distributors or intermediates, that the transaction is realized in

a global scale and that unconditional authorization was granted by

eleven competition authorities including USA, EU, South Korea and

Japan, determined that a more competitive market structure will be

established in Turkey subject to the modifications of the market condi-

tions in the world even if the Turkish market is actually different from

other markets.

Conclusion

The Board, as a result of the examination realized, unconditional-

ly authorized the said transaction by determining that, even though the

operation will have certain negative effects on competition, these

effects do not reach an extent which will “significantly lessen compe-

tition”.

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NEWSLETTER 2012