NEWSLETTER-2021

119 COMPETITION LAW spokes.2 Despite the lack of a direct exchange of information among the horizontal competitors, this indirect exchange of information can be considered to have the same negative impacts on the market as a horizontal hardcore cartel. Hub and spoke cartels represent a relatively new type of violation within the scope of Turkish competition law.3 While hub and spoke is not explicitly defined or regulated as a separate type of violation within the scope of the Law No. 4054 on the Protection of Competition (“Law No. 4054”) or the Guidelines on Vertical Agreements, the Guidelines on Horizontal Cooperation Agreements highlights that the exchange of information among undertakings can be realized in various manners, and that indirect exchange of information may also constitute a violation within the meaning of Law No. 4054.4 Taking into consideration that the information exchanged between suppliers and distributors may also occur for legitimate business purposes, it is not possible to conclude that each exchange of information on a vertical level constitutes a violation. Therefore, enforcement agencies should scrutinize whether the conditions for a hub and spoke cartel which are set forth by jurisprudence have been fulfilled in every individual case. Types of Hub and Spoke Arrangements Hub and spoke arrangements may appear in three main ways:5 Between Retailers, Supplier Serving as a Hub In this type of hub and spoke arrangement, it is possible for two competitor undertakings to exchange information indirectly through a supplier serving as a hub and operating in the upstream market. 2 OECD: Roundtable onHub andSpokeArrangements, BackgroundNote (2019), https:// one.oecd.org/document/DAF/COMP(2019)14/en/pdf (Access date: 16.11.2021). 3 Aslan, Yılmaz: Rekabet Hukuku Teori ve Uygulama, 6th edition, Ekim (2021), p. 437. 4 Guidelines on Horizontal CooperationAgreements published by the Turkish Competition Authority (2013), para. 40, https://www.rekabet.gov.tr/Dosya/kilavuzlar/ yatay-isbirligi-anlasmalari-hakkinda-kilavuz1.pdf (Access date: 16.11.2021). 5 Aslan, p. 437, 438.

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