NEWSLETTER-2017

93 COMPETITION LAW Non-compete Obligations Exemptions are not applied to non-compete obligations as per Article 7. These obligations are evaluated, separately, from the entire agreement and, therefore, implementation of exemption to the rest of the agreement is not prevented. Conditions for exemption in terms of the non-compete obligation is regulated separately under Article 7 of the Communiqué for “dis- tribution of motor vehicles,” “maintenance and repair services,” and “distribution of spare parts,” even though it was collectively regulated under the Abrogated Communiqué. One of the new regulations under the Communiqué is the opportu- nity for motor vehicle distributors to impose non-compete obligations upon buyers for a five-year term (Article 7). Non-compete obligations for the term following the expiry of the agreement cannot benefit from the exemption that is parallel to the Abrogated Communiqué. Non-compete obligations imposed by the spare parts distributors, and maintenance and repair service providers to buyers within the term of the agreement, are excluded from the exemption. Under the Com- muniqué, for maintenance and repair chains, non-compete obligations up to five years imposed upon chain services can benefit from group exemptions, unlike the Abrogated Communiqué. In terms of the indirect non-compete obligation, Article 4 of the Communiqué only makes an amendment in relation to the sale of the motor vehicles market. In this respect, based on the buyer’s purchases for the preceding year, any direct or indirect obligation imposed upon the buyer in terms of the purchase of goods or services in the relevant market, or the substitute of goods and services exceeding 80% for the new motor vehicle sale market, and 30% for the after-market sale from the supplier, or an undertaking determined by the supplier, will also be considered as a non-compete obligation. Opening an Additional Facility Site The Communiqué provides flexibility to the suppliers in order to build distribution chains for motor vehicles. In this regard, in the mo-