The Regulation on Administrative Fines to be Imposed in Case of Competition Violations

The Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting Competition, and Abuse of Dominant Position (Regulation on Fines) entered into force upon publication in the Official Gazette dated 27.12.2024 and numbered 32765. Through the Regulation on Fines, The Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting Competition, and Abuse of Dominant Position published in the Official Gazette dated 05.02.2009, numbered 27142 (Former Regulation on Fines) was repealed.

The important amendments introduced by the Regulation on Fines are outlined below: 

With the Regulation on Fines, the approach of determining the base fines within the scope of fixed rates has been abandoned. Under Articles 4 and 5 of the Regulation on Fines, the base fine rate to be imposed on undertakings and associations of undertakings or members of such associations shall be determined by the Board, separately for each violation, and the base fine rate shall be determined by increasing the initial fine rate according to the duration of the violation.

Under Article 5 of the Regulation on Fines, the initial fine rate is determined by considering the gravity of the damage that occurred or is likely to occur as a result of the violation and whether the nature of the violation is apparent and/or severe. The initial fine rate may be increased by at least one-fifth and at most one-fold depending on the duration of the violation.

Under Article 6 of the Regulation on Fines, the following circumstances are regulated as aggravating factors:

• Repeated violation of Article 4 and/or Article 6 of Law No. 4054 by the same undertaking or association of undertakings after the Board has determined that Article 4 and/or Article 6 of Law No. 4054 has been violated,
• Continuing the violation after the notification of the investigation decision, 
• Having a decisive influence on the violation, 
• Violation of the confidentiality obligation stipulated under Article 12/3 of the Regulation on Settlement Procedures Applicable in Investigations Regarding Agreements, Concerted Practices and Decisions Restricting Competition and Abuse of Dominant Position.

Under Article 6/3 of the Regulation on Fines, if the aggravating factors exist together, the rate of increase for each factor shall be added together and applied to the base fine rate.

Under Article 7 of the Regulation on Fines, the following circumstances are regulated as mitigating factors:

• Assisting the on-site inspection beyond the fulfillment of legal obligations, by providing physical and/or technical facilities that enable the on-site examination to be completed in a shorter time or to be carried out more effectively, submitting additional information or documents related to the inspection by the inspected undertakings themselves,
• Pressure by other undertakings into taking part in the violation, 
• Limited participation in the violation,
• Violating activities’ insignificance within the annual gross revenues, and
• Having foreign sales revenues within the annual gross revenues subject to administrative fines.

The Regulation on Fines defines the concept of “decisive influence”. In this context, decisive influence refers to the indispensable function in the violation’s occurrence and/or maintenance.

Under Article 8 of the Regulation on Fines, if an administrative fine is imposed on an undertaking or association of undertakings, the managers or employees who have a decisive influence on the violation shall be imposed an administrative fine up to five percent of the fine imposed on the undertaking or association of undertakings.