This case summary includes an analysis of the Turkish Competition Board’s (“Board”) Turkish Airlines and Kuveyt Turk exemption decision [1] in which the Board determined that the "THY Frequent Flyer Program Miles&Smiles Credit Card Cooperation Agreement" (“Agreement”) cannot be issued a negative clearance certificate pursuant to Article 8 of the Law No. 4054 on the Protection of Competition (“Law No. 4054”) or benefit from block exemption under the Block Exemption Communiqué No. 2002/2 on Vertical Agreements (“Communiqué No. 2002/2”), but may be granted individual exemption for a period of five years within the scope of Article 5 of the Law No. 4054. Background Two types of credit cards offer free or discounted airline transportation to end consumers. First is the Frequent Flyer Programme
The Turkish Competition Authority grants an individual exemption for five years to a “frequent flyer cooperation agreement” between a national airline and a bank (Turkish Airlines / Kuveyt Turk)
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