Newsletter-21

139 COMPETITION LAW distribution group in their regions, would easily receive an alternative offer from the PTT branches, and be able to switch their providers due to discounted prices. Therefore, this attempt might reduce the market power of the distribution groups (the incumbent suppliers) and create concerted competitive pressure. According to the pre-investigation decision, the electricity dis- tributors have taken joint action against this cooperation effort. The electricity distributors have coordinated through Elektrik Dağıtım Hizmetleri Derneği (“ELDER”) the association of undertaking of the distributors, and have applied pressure on the PTT to terminate its cooperation with Yaren Elektrik. A large number of electronic commu- nication that the Competition Authority has identified have indicated that the distributor companies voiced their discomfort in regard to this cooperation, and ELDER coordinated various attempts to remove this cooperation. As a consequence of ELDER’s power, which comes from its representation of the distributor companies that provide electricity to millions of people, the cooperation between PTT and Yaren Elektrik was terminated before it began. PTT and Yaren Elektrik terminated their cooperation efforts nearly one day after ELDER had taken ac- tion. It should be considered that PTT generates a large revenue from ELDER members, since ELDER’s members’ many customers’ bills are collected by the PTT. In that sense, ELDER has undertaken an ac- tive role, which in turn has made distributor companies check whether this cooperation has actually ended. Activities of ELDER, as an association of undertakings, have the power to aggravate and even prevent the activities of Yaren Elektrik, which is an independent supplier. Yaren Elektrik is a competitor of the distributor groups in the electricity sales arena. Moreover, one of the primary goals of the liberalization in the electricity sector is to provide consumers the ability to choose their providers. In that sense, the increase in the number of the alternative suppliers and, therefore, opportunity of competition among the providers is targeted. Regula- tions, such as the reduction of the free consumer limits and the separa- tion of distribution and retail activities, have been issued in support of this objective.