We would like to present the sixteenth of BASEAK CORE Papers article series!
While the Turkish Competition Authority ("the TCA") has wide powers in finding the facts, undertakings are expected to be able to carry out their activities in accordance with the lawful and predictable practices of the TCA. In this respect, the TCA has to comply with the principle of legality and legal certainty, which are regulated in the Turkish Constitution, in its administrative acts and actions. However, it is seen that the principle of legal certainty is not complied with in terms of some practices of the TCA and also its decision-making body, the Competition Board.
This environment of uncertainty, on the other hand, can impair undertakings' investment incentives as it would not be possible to understand which behaviours will draw TCA's attention. Indeed, the amendments to the rules after making an investment can pose a problem in terms of receiving the profits of that investment. As a result, in the short run, the actors in the market; in the medium-term, the number of actors and the market itself; and in the long-term macroeconomic variables would be damaged. Whereas the Competition Board may deviate from its precedent, still its deviation must be grounded on justifiable reasons. Otherwise, it may be questioned whether the principle of legal certainty has been violated.
Ensuring legal certainty in terms of competition law practices is closely related to establishing the balance between over-enforcement and under-enforcement. If the said balance is disturbed, domestic and foreign investments made or aimed to be made in Turkey, thus the employment opportunities, and ultimately the social welfare may be adversely affected.
In this issue of the BASEAK CORE Papers series Assist. Prof. Y. Sertaç Serter and Associate Aysu Tanoglu scrutinize how some practices of the TCA harm the principle of legal certainty, and further assess the economic analysis of these infringements and their potential effects on the Turkish economy.
To download BASEAK Core Paper No.16, please click on this link.
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