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02 May 2019
This article provides a brief overview of a recent Competition Board decision concerning an investigation of five undertakings and one association of undertakings active in cabotage roll-on/roll-off (Ro-Ro) transportation lines in Turkey. The decision was announced on the Competition Authority's website.
After a 17-month investigation of undertakings active in the Ambarlı-Bandırma and Ambarlı-Topçular Ro-Ro transportation lines, the Competition Board announced its final decision on 19 April 2019. The companies under investigation were:
The Competition Board found that Tramola, Kale Nakliyat and İstanbullines, which operate in the Ambarlı-Bandırma Ro-Ro line, and İDN and İDO, which are active in the Ambarlı-Topçular Ro-Ro line, had violated Article 4 of the Law 4054 on the Protection of Competition by collectively determining prices. The board levied turnover-based monetary fines against all five of the investigated undertakings at different rates.
With regard to the Ambarlı-Topçular Ro-Ro line, the Competition Board decided to impose:
With regard to the assessment of the undertakings active in the Ambarlı-Bandırma Ro-Ro line, the Competition Board decided to impose:
The total amount of the fines imposed on all undertakings was TL7,404,850.77 (approximately $1.5 million or €1.3 million).
The result confirms the board's established practice regarding the imposition of administrative monetary fines based on the entire turnover of undertakings.
The lawyer who represented İDO in the investigation commented on the decision as follows:
While we note that the administrative monetary fine percentage assigned to our client is significantly lower than that of others, we still find that the Board uses the "cartel" term too quickly and rigidly in its finding of a price fixing, disregarding the one-off nature of the information exchange and the exceptional circumstances surrounding that single communication in the form of an attempt to invite a competitor into a dysfunctional transportation line.
The reasoned decision, especially the evaluation on the Ambarli-Topcular Ro-Ro line, is expected to provide enlightening information on the board's reasoning, its views on the definition of a cartel and its approach regarding information exchange.
For further information on this topic please contact Gönenç Gürkaynak at ELIG Gürkaynak Attorneys-at-Law by telephone (+90 212 327 17 24) or email (firstname.lastname@example.org). The ELIG Gürkaynak Attorneys-at-Law website can be accessed at www.elig.com.
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