Akkas & Associates Law Firm is a globally recognized Turkish competition antitrust law firm with a long record of excellence and professional leadership in Istanbul, Turkey. Our Istanbul competition antitrust lawyers are prepared to handle all types of business matters. Our Turkish competition antitrust lawyers also represent our clients in the following areas of law; corporate law, company formation and governance, labour employment law, bankruptcy & debt recovery, work and resident permit applications, mergers & acquisitions, due diligence, and commercial transactions.
Turkish antitrust laws, also referred to as “competition laws” are laws passed by Turkish Parliament to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy. These laws have evolved along with the market, vigilantly guarding against would-be monopolies and disruptions to the productive ebb and flow of competition.
Antitrust laws are applied to a wide range of questionable business activities, including but not limited to:
Suppose company A operates in the North and company B does business in the South. If you agree to stay out of my territory, I won’t enter yours, and because the costs of doing business are so high that startups have no chance of competing, we both have a de facto monopoly.
There are three companies in an industry, and all three decide to quietly operate as a cartel. Company 1 will win the current auction, so long as it allows Company 2 to win the next and Company 3 to win thereafter. Each company plays this game so that all retain current market share and price, thereby preventing competition.
Bid rigging can be further divided into the following forms: bid suppression, complimentary bidding and bid rotation.
Bid Suppression: Competitors refrain from bidding or withdraw a bid so that a designated winner’s bid is accepted.
Complementary Bidding: Also known as cover or courtesy bidding, complementary bidding happens when competitors collude to submit unacceptably high bids for the buyer, or include special provisions in the bid that effectively nullify the bids. Complementary bids are the most frequent of bid rigging schemes, and are designed to defraud purchasers by creating the illusion of a genuine competitive bidding environment.
Bid Rotation: In bid rotations, competitors take turns being the lowest bidder on a variety of contract specifications, such as, contract sizes and volumes. Strict bid rotation patterns violate the law of chance, and signal the presence of collusion activity.
My company and your company are the only two companies in our industry, and our products are so similar that the consumer is indifferent between the two except for price. In order to avoid a price war, we sell our products at the same price to maintain margin, resulting in higher costs than the consumer would otherwise pay.
Usually when most hear the term “antitrust” they think of monopolies. One of the most well-known antitrust cases in recent memory involved Microsoft Corporation (MSFT) being found guilty of anti-competitive, monopolizing actions, by forcing its own web browsers upon computers that had installed the Windows operating system.
Regulators must also ensure that monopolies are not borne out of a naturally competitive environment and gained market share simply through business acumen and innovation. It’s only acquiring market share through exclusionary or predatory practices that is illegal.
Mergers and Acquisitions
No introduction to antitrust legislation would be complete without addressing mergers and acquisitions. We can divide these into horizontal, vertical and potential competition mergers.
Reach our Istanbul Competition Antitrust Lawyers
Since its foundation in 1992, Akkas & Associates Turkish Law Firm has been the choice of numerous clients in Istanbul, Turkey. Thanks to its nationally recognized Turkish construction law practice, our firm is now one of the leading business law firms in Istanbul, Turkey. You may reach our Istanbul competition antitrust lawyers through our Contact page.