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In practice, it could be observed that the terms of a merger and
acquisition or concentration are being used as substitutes for each
other. However, there is no unity in the usage of such terms, neither in
practice, nor in the doctrine. Although Draft of the Law to Amend the
Protection of Competition No. 4054 carries the term, ‘concentration
transactions,’ the term of ‘merger and acquisition’ is used in Law on the
Protection of Competition No. 4054 (“LPC”) and the Communiqué.
Nevertheless, other than mergers and acquisitions, concentrations
might be performed through the establishment of a joint venture, as
well. A concentration can be defined as the power of economic deci-
sion-making and leading; in other words, changing hands of economic
control between the undertakings and, thus, the creation of a situation
that leads to structural modifications in the related market by lessening
the number of players in such market
3
. In order for all activities that
cause the central concentration to be considered within the scope of the
LPC, it might be more accurate to use the word ‘concentration,’ instead
of the term ‘merger and acquisition’
4
.
Supervision of Concentrations
Mergers and acquisitions might damage a competitive environ-
ment via monopolization and cartelization. Therefore, all competition
rules of developed countries contain provisions regarding the supervi-
sion of mergers and acquisitions
5
.
Article 7 of the LPC entitled “Mergers or Acquisitions” prohibits
mergers by one or more undertakings, or acquisitions by an undertak-
ing or a person from another undertaking that aims to create or
strengthen a dominant position, which would result in a significant
lessening of competition. Therefore, in order for a merger or an acqui-
sition to be prohibited, it should either (i) create or strengthen a domi-
nant position or (ii) the created or strengthened dominant position
should significantly lessen the effective competition.
112
NEWSLETTER 2015
3
SEZEN, Ayse
, Birlesme ve Devralmalar, Uluslararasi Rekabet ve Teknoloji Birligi, 2007, p. 2.
4
ERDEM, H. Ercument
, Turk-İsvicre Rekabet Hukuklarında Birlesme ve Devralmalar, Prof.
Dr. Erdogan Moroğlu’na 65 Yaş Günü Armağanı, 1999, p. 203.
5
ERDEM, H. Ercument
, Turk ve AT Rekabet Hukukunda Birlesme ve Devralmalar, 2013,
p. 32.