Newsletter-21

163 COMPETITION LAW diesel supply capacity and, following the increase, the diesel demand will continue to be met through imports, and the rebate system will not limit the distributor’s import opportunities. Besides, the rebate system is likely to result advantageously for middle and low-level distributors, since the first tier starts from a reasonable level, and the system’s marginal contribution gradually decreases. Moreover, 99% of Tüpraş’s total diesel sales will benefit from the rebate system. The Board mentioned that the rebate system is less likely to result in anti- competitive effects in the diesel market, since the structural features or the purchasing power do not determine the diesel market’s competition conditions, and there are many players in the subject matter market. The Board also considered the distributor responses concerning the rebate system that indicate that the rebate system does not result in discriminatory practices, but will have a consequence to cost benefits among importer distributors and distributors who does not have the capacity to import and reduce the differences with regard to the pur- chase conditions among the different-scale undertakings. Within that context, the Board decided that Tüpraş has not abused its dominant position through its rebate system in accordance with Art. 6 of the Competition Act. Past Competition Board Decisions in Regard to the Rebate Systems According to the secondary legislation, and the Board’s past de- cisional practice 5 , the retroactive rebate schemes raise fidelity induc- ing effects. That being said, the retroactive rebates 6 are more likely to cause anti-competitive foreclosures since competitors will be required to propose a larger discount to customers in order to persuade them to switch sellers, rendering them unable to compete with the dominant undertaking, under equal conditions for the entirety of each customer’s demand. Furthermore, the personalized rebate schemes 7 are prone to 5 Please see Competition Board’s decision dated 30.03.2011 and numbered 11- 18/341-103; Competition Board’s decision dated 17.03.2011 and 11-16/287-92. 6 Rebate systems in which the customer can obtain discounts for all of its purchases from the undertaking offering the rebate within the relevant period if it hits the rebate target are called “retroactive rebates”. 7 Personalized rebate schemes include purchase targets individualized depending on the demand of each customer. If a purchase target applicable to all customers