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Abuse through vertical agreements can be classified as follows:

exclusive purchase agreements, tying and discrimination.

Exclusive Purchase Agreements

An undertaking in the dominant position can push its competitors

out of the market and lessen the competition by forcing exclusive

agreements. This will limit customer preferences.

In these kinds of agreements the buyer is under the obligation to

supply the goods and services subject to the agreement from an exclu-

sive supplier. In order to create exclusionary effect, these agreements

have to provide provisions, which will restrict purchase and sale of

competitor goods, or exclusive purchase obligation should cover goods

of the competitors

3

.

Exclusive practices contain anti-competitive outcomes such as,

monopolization of producers’ distribution service, substantial lessen-

ing of competition, entry barriers and prevention of competitor growth.

Many exclusive agreements were subject to the Competition Board

(“Board”) decisions in Turkey. In Karbogaz decision

4

the undertaking

in the dominant position in liquid carbon dioxide market executed

long-term exclusive agreements with its customer and abused its dom-

inant position. It was claimed that the undertaking is “restricting mar-

ket activities of present or prospective competitors by creating entry

barriers”. The Board ruled administrative fine and requested the

amendment of the agreements.

Another example is the Turkcell decision. Turkcell is an undertak-

ing in the dominant position in GSM service and mobile marketing ser-

vice market. In this decision it was claimed that Turkcell used its dom-

inance and forced its customers to get service exclusively from

Turkcell. The Board decided that the exclusivity created by Turkcell on

its customers pushed competitors out of the market and therefore is an

abuse of dominant position

5

.

COMPETITION LAW

237

3

As an example see the decision, Case 85/76 Hoffman-La Roche v Commission (1979) ECR

461, (1979) 3 CMLR 211, p.109.

4

Board decision dated 23.8.2002 and numbered 02-49/634-257.

5

Board decision dated 23.12.2009 and numbered 09-60/1490-379.