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Distribution Agreements within the Framework of

Turkish Competition Law

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Att. Naciye Yilmaz

Introduction

Article 4 of the Act on the Protection of Competition numbered

4054 (“Competition Act”) prohibits “

agreements and concerted prac-

tices between undertakings, and decisions and practices of associa-

tions of undertakings that have as their object or effect, or likely effect,

the prevention, distortion, or restriction of competition, directly or

indirectly, in a particular market for goods or services.

” Undertakings

may cooperate in such a way that this cooperation may prevent or

restrict the competition. Block Exemption Communiqué on Vertical

Agreements numbered 2002/2(“Communiqué no. 2002/2”), Amended

by the Competition Board Communiqués No. 2003/3 and 2007/2 pro-

vides a “vertical agreement” definition. Pursuant to Communiqué

No. 2002/2, a vertical agreement may be predicated as an “

agreement

concluded between two or more undertakings operating at different

levels of the production or distribution chain, with the aim of purchase,

sale or resale of particular goods or services.

” Within this framework,

distribution agreements are considered as vertical agreements. This

Newsletter Article evaluates distribution agreements with some of their

clauses typically used within the framework of Turkish competition law.

Exclusivity

Exclusivity, in general, means to grant commercial privileges to a

certain person or enterprise within a bordered region, or for a certain

clientele. In terms of distribution agreements, exclusivity may be con-

sidered as security requested from the producer by the distributor, in

COMPETITION LAW

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Article of April 2015