Competition Board's Commitment Decision On Coca-Cola

September 2021 Authors: Neyzar Unubol, Ali Tuncsav With its decision dated 2 April 2020, the Competition Board (“Board”) initiated an investigation on the allegation that Coca-Cola Satis ve Dagitim Anonim Sirketi (“CCSD”), one of Coca-Cola Icecek Anonim Sirketi’s Turkish subsidiaries, violated Law No. 4054 on the Protection of Competition (“Competition Law”) by preventing the sales of its competitors’ products at the final sales points. The investigation was launched to examine whether certain provisions of the agreements executed between CCSD and the final sales points, such…

Virtual Arbitration Hearings

Authors: Ilgin Burcay Duran, Mina Erdem  During the COVID-19 pandemic, various arbitral institutions, such as the International Court of Arbitration (ICC), the American Arbitration Association (AAA), the Hong Kong International Arbitration Centre (HKIAC), the International Centre for Settlement of Investment Disputes (ICSID), and the London Court of International Arbitration (LCIA) declared their intention to ensure that international arbitration proceeds in a stable and foreseeable manner during this period, by publishing a joint statement. In this context, virtual hearings are explicitly permitted…

A new procedure in Competition Law: Settlement

Authors: Neyzar Unubol, Ali Tuncsav One of the significant amendments to Law No. 4054 on the Protection of Competition (the Competition Law) was the introduction of the settlement mechanism into Turkish competition law on 24 June 2020. The settlement procedure, which has been in force in the EU and many EU countries, such as France and the UK, can be simply defined as a reduction in administrative fines in return for the admission of a competition law violation by an investigated undertaking. Article 43 of the Competition Law states that if an undertaking admits the existence and alleged scope…

Uncertain Issues On Residence And Workplace Leases

Authors: Busra Ozden, Merve Tuzmen In this first part of a series of articles on disputed lease provisions of the Turkish Code of Obligations (the “TCO”) with respect to residences and roofed workplaces, we address whether the parties are free to determine the rental fee after the end of each five-year period. The TCO allows the parties to determine the rent increase rate in residence and roofed workplace leases subject to limitations. Article 344 of the TCO explicitly sets forth the annual rent increase rules that apply within each five-year period, both for the Turkish lira and for foreign…

Turkey: Q2 Competition Law Bulletin 2021

The Preliminary Report on E-marketplace Platforms Sector Inquiry (the “Preliminary Report”) published by the Turkish Competition Authority (the “TCA”) was the most significant competition law development during the second quarter of 2021. On 7 May 2021, the Preliminary Report, which contains the Competition Board’s (the “Board”) initial findings of the sector inquiry initiated on 11 June 2020 and policy suggestions, was published on the TCA’s website for public consideration. The Preliminary Report explores competition law concerns associated with the e-commerce sector and…

Amendments to the Turkish Execution and Bankruptcy Law

Author: Berkay Gul, KDK LawFirm The Law to Amend the Execution and Bankruptcy Law and Other Laws numbered 7327 (the “Amendment Law”), which entered into force on 19 June 2021, amends several different laws, particularly the Execution and Bankruptcy Law (the “EBL”), and brings with it fundamental changes, especially to the concordat institution. Along with the amendments made to the concordat provisions, the bankruptcy liquidation process has also been revised. 1. Amendments to the Concordat Provisions The concordat had gained currency, again, following the amendments made to the EBL…

Turkish Data Protection Authority’s Announcement on The Partnerships’ Obligation to Register with VERBIS

On 25 June 2021, the Turkish Personal Data Protection Authority published an announcement regarding partnerships’ obligation to register with the Data Controllers’ Registry Information System.

Ford Otosan Investment

Ford Otosan announced that a new investment of EUR 2 billion will be made within the scope of the transformation of the Kocaeli factories, which is one of Europe's largest commercial vehicle production base, to produce electric cars. Accordingly, within the strategic partnership of Ford and Volkswagen, the new generation of Volkswagen commercial vehicles model 1-ton will be produced in Turkey by Ford Otosan. With this new investment, the Kocaeli factories aim to become Turkey's first and only integrated production facility of electric vehicles. With this 10-year investment, the number of Ford…

Regulation on Sharing of Confidential Information Published

In June, the Banking Regulation and Supervision Authority published the Regulation on Sharing of Confidential Information.

Current Developments in Crypto Assets

Authors: Gulce Gurdal and Can Baykut  On 16 April 2021, Turkey published its first regulation regarding the use of crypto assets in payments, the Regulation Prohibiting the Use of Crypto Assets in Payments (the "Regulation") by the Central Bank of the Republic of Turkey. Accordingly, crypto assets are defined as "intangible assets created virtually by using the distributed ledger technology, or a similar technology that is distributed through digital networks, and are not qualified as fiat money, bank money, electronic money, payment instrument, security, or any other capital market instrument.”…

Application of Law No. 805 in Agreements Involving a Foreign Party

In a dispute arising from an agreement executed in a language other than Turkish, particularly in cases where one of the parties is non-Turkish, there is a risk of Turkish courts assessing such agreement’s validity under Law No. 805 on the Mandatory Use of Turkish in Commercial Enterprises.

Akkuyu Nuclear Power Plant

Akkuyu Nuclear Power Plant in Mersin is expected to become a major energy resource for Turkey.