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NEWSLETTER 2013 150
Abuse of Dominant Position through Predatory Pricing*
Prof. Dr. H. Ercument Erdem
Distortion of competition in the relevant market through predatory
pricing is a common form of competition infringement. In practice, an
undertaking in a dominant position aims to push its rivals out of the
market by obstructing their competitiveness with low prices, and prevents
potential rivals from entering the market. After rivals are pushed out of
the market, the undertaking compensates its losses by increasing its prices
above the competitive price limit.
In the light of the foregoing, this article will review predatory pricing
as a common form of infringement of competition.
Legal Basis
Article 6, entitled “Abuse of Dominant Position”, of the Act on the
Protection of Competition No. 4054 (“Competition Act”) states a non
numerous clausus list of abuses of dominant position.
The Competition Board (“Board”) accepts predatory pricing as
an abuse of dominant position, despite not being listed in this above-
mentioned article. For instance, the Board accepted in its decision dated
23.11.2000 and numbered 00-46/488-2661 (“Microsoft Decision”), that
predatory pricing is an abuse of dominant position after asserting that
“Article 6 of Act No. 4054 prohibits predatory pricing by undertakings
that have a dominant position.”
In a recent decision of the Board, it is also expressly stated that
predatory pricing may be considered an abuse of dominant position 2.
* Article of September 2013
1 See the following link to reach the Board’s decision:
Kurul%2bKarar%25c4%25b1%2fkarar312.pdf (accesson on: 03.10.2013).
2 For instance, see Board’s decision dated 20.06.2013 and numbered 13-39/496-218,
Karar%C4%B1%2f13-39-496-218.pdf (accessed on: 03.10.2013) or Board’s decision dated
18.07.2013 and numbered 13-46/589-259,
Karar%C4%B1%2f13-46-589-259.pdf (accessed on: 03.10.2013).