NEWSLETTER-2017

114 NEWSLETTER 2017 Regulations Regarding the Most Favored Nation / Customer Condition As is stated in the Memorandum of the Competition Authority, it is not easy to decide whether or not a competition law violation has occurred with regard to the most favored nation / customer (“MFN”). Moreover, pursuant to the Competition Authority, the fact that there is no explanatory provision on the conditions of MFN in the Turkish competition law legislation causes uncertainties, in practice. For this reason, the Competition Authority has considered that it would be ap- propriate to include the regulations on the MFN conditions in the Draft Guideline. In accordance with the new regulation proposed in the Draft Guideline, in the competition law examinations with regard to the MFN condition, it is necessary to examine, in detail, the competi- tive position of the beneficiary and competitors in the relevant market, the purpose for which the contract is placed, the characteristics of the market, and the condition. In the Workshop, the concerns regarding introducing regulations regarding the application of the MFN have been expressed due to the fact that there has been no established case-law on the MFN practice. It has been proposed by some sector representatives to introduce a market share threshold in the competition law examinations for the MFN condition, pointing out that it is unclear how to conduct market power examinations on the market position of the beneficiary and competitors. Additionally, with the proposed amendment to Article 19 of the Vertical Guideline, it states that the MFN condition might be an- other example of enhancing the effectiveness of maintaining the resale price. However, as such additional proposal of regulation is mentioned together with the resale price regulation, under the same paragraph, it has been criticized that the MFN condition might be recognized as the resale price maintenance. Conclusion In order to meet the needs arising from the competition law appli- cations, and to comply with the EU legislation, it has been concluded that the “Agency Contracts,” “Internet Sales,” and “Most Favored Na- tion / Customer Conditions” should be reviewed and introduced into