Unfair Competition in Turkey: Understanding the Issues and Finding Solutions

In Turkey, there are two important regulations that aim to create a fair and competitive environment in the economy: the Turkish Commercial Code (TCC) and Law no. 4054 of 12 December 1994 on the Protection of Competition. The TCC defines unfair competition as “acts or commercial practices between competitors, providers, and customers that are misleading or violate the rules of ethics or the bono fide principles.” The TCC outlines the elements of unfair competition and lists situations that constitute unfair competition in Article 55.

Unfair competition can result in both civil and criminal consequences. Under civil law, the TCC provides for several remedies, including a declaratory judgment action, an action to prevent the unfair competition act, an action for restitution, and an action for compensation. In an action for compensation, the plaintiff must prove that the defendant’s act caused the damage, and the TCC refers to the Turkish Code of Obligations (TCO) for compensation cases. The TCO provides for both pecuniary and non-pecuniary damages. In conclusion, the Turkish legal system aims to provide a fair, uncorrupted, and competitive economic environment by regulating unfair competition and providing remedies for those who suffer from it.

One important aspect of unfair competition in Turkey is the role of the Competition Authority. This is an independent and impartial public authority that is responsible for ensuring the protection of competition in Turkey. The Competition Authority has the power to initiate investigations, take enforcement actions, and impose fines or penalties on companies or individuals who engage in unfair competition practices.

Another key aspect of the Turkish legal system is the distinction between civil and criminal consequences for unfair competition. Civil consequences involve legal action taken by a private individual or entity to protect their rights and interests. For example, a company that has suffered harm as a result of unfair competition may bring a lawsuit to seek compensation for damages, prevent the continuation of the unfair competition, or declare that the unfair competition has occurred. On the other hand, criminal consequences are imposed by the state and involve the imposition of fines, imprisonment, or other penalties on individuals or entities that engage in unfair competition practices that are deemed to be illegal.

Finally, it is worth mentioning that the Turkish legal system provides for a number of specific remedies for unfair competition. For example, the TCC provides for the right to request an injunction to prevent the continuation of an act of unfair competition, the right to seek compensation for damages, and the right to request that false or misleading information be corrected. Additionally, the TCC provides for the right to seek the destruction or removal of materials or properties that have been used in the commission of unfair competition practices.

In conclusion, the Turkish legal system provides a comprehensive framework for the protection of competition and the prevention of unfair competition. By regulating the conduct of competitors, suppliers, and customers, the legal system helps to promote a fair, ethical, and competitive business environment in Turkey.