Newsletter-21

162 NEWSLETTER 2016 Tüpraş’s Rebate System The Board reviewed Tüpraş’s “Year 2016 Fuel Sales Implementa- tions” (“Sales Implementation”) that is sent to fuel distributor com- panies. The Sales Implementation comprises the order notifications, revisions, compliance, maturity, payment, warrant, interest for the fuel distributor companies and other commercial conditions for other types of fuels. The complaint primarily concerns the “turnover premium sys- tem” that is applied to the fuel types and regulated in the Sales Imple- mentation. It is alleged that the gradual turnover premium system will strengthen the positions of the four-five distributors in the distribu- tion sector in which the premium margins are very low. Moreover, the system will result in discrimination between the distributors and, therefore, middle and low level distributors may be excluded from the market, since there are large gaps between the tiers 4 . The Board stated that the turnover premium implication can be regarded as a rebate system and can be evaluated as a breach of com- petition law, if the system results in anti-competitive exclusion or dis- crimination. Firstly, the Board decided that the rebate system cannot result in exclusionary effects, since approximately half of the diesel demand is met through imports, and Tüpraş is the only diesel producer in Turkey. Therefore, the Board evaluated whether the rebate system may, in consequence, create discrimination amongst the distributors. According to the decision, although the rebate system is a retro- active and progressive system, it is flexible for the customers, since the tiers can be revisited if the customers exceed or cannot reach the determined amount for the tier. Moreover, the rebate system is defined as a transparent and standardized rebate system that is provided to all customers with equal conditions, and in objective amounts. The reason for the application of the rebate system is to use the increased Competition Board’s decision dated 20.06.2008 and numbered 08-40/537-202; Competition Board’s decision dated 04.11.2009 and numbered 09-52/1246-315. 4 The turnover premium system includes different purchase tiers. According to the system the minimum rebate rate is provided to the purchases amounting between 10,000-100,000 tones and the maximum rebate rate is provided to the purchases amounting 1,500,000 tones and more than 1,500,000 tones.