INTERNATIONAL: TURKEY - MERGER CONTROL - INNOVATION - DEFENSE - ENFORCEMENT

Turkey: Innovation-based analysis of mergers

Innovation can either be viewed by the competition authorities as a parameter that should be protected from the potential negative effects of a transaction, or it can be utilized by the merging parties as part of a defense argument to set off against or abate the anti-competitive concerns raised by the competition authorities. Whenever the notion of innovation causes competition-related concerns, enforcement authorities recognize and acknowledge the importance of innovation in an effort to protect it; yet, whenever arguments are put forth by the parties to the transaction in order to incorporate innovation as a defense, such arguments are met with resistance or they are overlooked. Although competition authorities have recognized the importance of innovation in many of their decisions, we are at a critical turning point for the future of merger control analysis, as it is time for competition enforcement authorities to make an essential change to the high standards applied to the innovation defenses raised by the merging parties in practice, and adjust their enforcement standards to the requirements of the modern global economy.

I. Introduction 1. It is a well-established and widely recognized fact that innovation is the primary driver of economic growth and development in the modern global economy. [1] As the main objective of the competition law regime is to promote economic efficiency and enhance total welfare, [2] stimulating innovation constitutes an important part and key goal of the competition law regime in many jurisdictions. Accordingly, competition law policies should aim at enhancing economic growth and consumer welfare through increased competition and innovation. [3] Furthermore, due to the rapid development of technology in the 21st century, today’s economies require firms to compete by undertaking innovative activities, instead of competing solely on prices. [4] 2. The fact that innovation is

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Authors

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

Quotation

Gönenç Gürkaynak, Naz Topaloglu, Turkey: Innovation-based analysis of mergers, February 2019, Concurrences Review N° 1-2019, Art. N° 88891, www.concurrences.com

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