Introduction:

On December 27, 2024, the “Regulation on Administrative Fines to be imposed for Agreements, Concerted Practices and Decisions Restricting Competition and Abuse of Dominant Position” (“Regulation”) entered into force. This new regulation replaces the previous regulation published in the Official Gazette dated February 15, 2009 and numbered 27142, and introduces significant changes in the determination of administrative fines to be imposed for competition violations.

• Determination of the Basic Penalty Rate

In the previous Regulation, the basic penalty rates were categorized as “cartel” and “other infringements” and were determined based on fixed rates. With the new Regulation, this approach has been abandoned and the basic penalty rate is determined separately for each infringement, considering the nature of the infringement and its negative impact on competition. In this way, penalties are intended to be more appropriate to the seriousness of the violation.

• Aggravating and Mitigating Factors

The aggravating and mitigating factors to be considered in determining the penalties have been rearranged in the Regulation. Aggravating factors include factors such as repetition of the infringement, continuation of the infringement after the notification of the investigation decision, having a decisive effect on the infringement and breach of the confidentiality obligation in the conciliation process. Mitigating factors include assisting the on-site investigation, coercion by other undertakings, limited participation in the infringement, and low share of the infringing activities in annual gross revenues.

• Increase depending on the duration of the infringement

With the new regulation, the time intervals for the increases to be made in the basic penalty rate depending on the duration of the violation have been shortened.

• Administrative Fines to be imposed on Managers and Employees

The Regulation provides for an administrative fine of up to five percent of the fine imposed on the undertaking or association of undertakings to be imposed on the managers and employees of the undertaking or association of undertakings that are found to have a decisive influence on the violation. This regulation aims to increase the sensitivity of managers and employees on compliance with competition rules by underlining individual responsibility.

Conclusion

The new regulation adopts a more flexible and sensitive approach in determining the administrative fines to be imposed for competition violations. This aims to create a more effective mechanism to protect competition and deter infringements.

 

Contact

Burcu Dal Gökalp
Partner
bdg@guner.av.tr

Yiğit Narin
Associate
yn@guner.av.tr