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The Turkish Competition Authority imposes administrative monetary fines on a manufacturer and distributor of heating systems for engaging in vertical restraints (Baymak)

This case summary concerns an analysis of the Board’s Baymak decision [1], which concerned an administrative monetary fine of TL 26,813,704.10 against Baymak Makina San. ve Tic. A.Ş. (“Baymak”) for the violation of Article 4 of the Law No. 4054 on the Protection of Competition (“Law No. 4054”) through resale price maintenance practices, restrictions on online sales and non-compete obligations with a duration exceeding five years. Upon its evaluation of the merits of the case at hand, the Board resolved that none of the three types of vertical restraints that Baymak imposed on its dealers could benefit from the block exemption granted under Block Exemption Communiqué No. 2002/2 on Vertical Agreements (“Communiqué No. 2002/2”) or an individual exemption under Article 5 of Law No. 4054, and thus,

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Authors

  • ELIG Gürkaynak Attorneys-at-Law (Istanbul)
  • ELIG Gürkaynak Attorneys-at-Law (Istanbul)

Quotation

Gönenç Gürkaynak, Onur Özgümüş, The Turkish Competition Authority imposes administrative monetary fines on a manufacturer and distributor of heating systems for engaging in vertical restraints (Baymak), 26 March 2020, e-Competitions Preview, Art. N° 96739

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