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NEWSLETTER 2013

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decision dated 06.12.2012 and numbered 12-62/1633-598, in which it

defends that Kale Kilit ve Kalıp Sanayi Anonim Şirketi has not abused

its dominant position through predatory pricing and a rebate system

(“Kale Kilit Decision”)

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, the Board did not make a dominant position

determination due to its determination that the pricing policies did not

constitute an infringement of competition.

The Draft Guidelines (§7) set forth that in cases where no dominant

position exists or of the existence of one of the states of abuse, the Board

may choose not to examine the other element. It is not possible to agree

with such an opinion of the Board.

The Draft Guidelines were prepared during the European Union

accession period, as part of the harmonization of the European Union

Acquis and Turkish Law, and in this context, the Guidance on the

Commission’s enforcement priorities in applying Article 82 of the

EC Treaty to abusive exclusionary conduct by dominant undertakings

(“Guidance”) the was taken as example. The Guidance explicitly state

that the first thing to be done is to determine whether the undertaking is

in a dominant position (§9).

Other Conditions

In evaluating predatory pricing, the Board particularly examines if the

prices of the undertaking in the dominant position are below production

costs (competitor test), the purpose of the undertaking in the dominant

position in implementing the predatory pricing and if there is a possibility

of profitability once the strategy results in success

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.

The above mentioned criteria are listed under the Draft Guidelines.

In accordance with the Draft Guidelines, in the competitor test, the

possibility of market closure to a competitor with equal effectiveness is

investigated.

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See the following link to reach the Board’s decision:

http://www.rekabet.gov.tr/File/?path=ROOT%2fDocuments%2fGerek%C3%A7eli+Kurul+

Karar%C4%B1%2f12-62-1633-598.pdf (accessed on: 03.10.2013).

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Further information may be found in the Board’s decision dated 18.07.2013 and numbered

13-46/589-259. To access the decision see footnote 2.