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NEWSLETTER 2013

152

“Predatory pricing is an anti-competitive pricing strategy by

which a dominant undertaking engages in predatory conduct

by deliberately incurring losses (sacrifice) in the short term,

so as to foreclose or discipline or prevent by other means the

competitiveness of one or more if its actual or potential competitors

with a view to strengthening or maintaining its market power.”

Historical Development

The Board gave its first decisions on predatory pricing in the 1990s.

The Board, in those decisions, gave a general decision on this practice

and stated that it should be considered under Article 6 of the Competition

Act

7

.

Then, the Board stated step by step in its decisions the required

conditions in order for a company’s behavior to be considered as predatory

pricing. For instance, in the Board’s decision (“Aycell Decision”), dated

14.08.2003 and numbered 03-56/655-301

8

, the Board called attention

to the objective of the undertaking which allegedly applied predatory

pricing and decided that there was no predatory pricing since Aycell did

not intend to push its competitors out of the market.

In addition to the abovementioned condition, the Board also specified

in its decision dated 19.10.2004 and numbered 04-66/955-231

9

(“Hürriyet

Gazetesi”), that a price should be temporarily determined as being below

the product value in order for it to raise the question of predatory pricing.

7 

For instance see the Board’s decision dated 26.11.1998 and numbered 93/750-159 http://

www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%25c3%25a7eli%2bKurul

%2bKarar%25c4%25b1%2fkarar10.pdf (accessed on: 04.10.2013) or the Board’s decision

dated 29.02.2000 and numbered 00-9/89-44

http://www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%25c3%25a7eli%2b

Kurul%2bKarar%25c4%25b1%2fkarar41.pdf (accessed on: 04.10.2013).

8 

To reach the decision

http://www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%25c3%25a7eli%

2bKurul%2bKarar%25c4%25b1%2fkarar742.pdf (accessed on: 04.10.2013) Also see the

Board’s decision dated 02.10.2002 and numbered 02-60/755-305,

http://www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%25c3%25a7eli%2b

Kurul%2bKarar%25c4%25b1%2fkarar633.pdf (accessed on: 04.10.2013).

9 

To reach the decision.

http://www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%25c3%25a7eli%2b

Kurul%2bKarar%25c4%25b1%2fkarar1027.pdf (accessed on: 04.10.2013).