NEWSLETTER-2017

129 COMPETITION LAW anti-competitive effects. 8 The competitive effects may also vary de- pending on the fact that the MFN clause is formed as a narrow or wide MFN clause. The pro-competitive effects of an MFN clause are as follows: (i) provides investment incentives to the buyer, (ii) reduces transaction costs, (iii) avoids the buyer to delay its purchase; therefore, provides the demand certainty in the market, (iv) as a consequence of the de- mand certainty, the seller is facilitated in making efficient production and capacity decisions and (v) avoids the free rider problems 9 . The anti-competitive effects of a MFN clause are as follows: (i) facilitates coordination, (ii) reduces price competition and results price stability, (iii) exclusion: raising rivals’ and entrants’ costs and (iv) increasing the seller’s bargaining power 10 . Booking.com Decision and MFN As mentioned above, the reasoned decision has not yet been published. On the other hand, the short form decision points out two facts. Firstly, the Board determined the grounds of the infringement as Article 4 of the Competition Act instead of Article 6 of the same Act. The various competition authorities in the world generally evaluated the MFN clauses in the scope of the articles corresponding to Article 4 of the Competition Act (for instance, Article 101 of the Treaty on the Functioning the European Union). On the other hand, there is no obstacle for a MFN clause to be evaluated in the scope of Article 6. Indeed, we have recently seen the application of Article 6 in the Yemek Sepeti decision in which the Board imposed an administrative monetary fine on Yemek Sepeti, ordered it to end any type of MFC practices that prevent competing platforms to offer better or different conditions, and revise its agreements in such scope. The Board may have various reasons for not applying Article 6 in the Booking.com case, and the reasoned decision will certainly light the way. 8 Vandenborre I., Frese, M. J, p. 588. 9 Baker, Jonathan B. and Chevalier, Judith A., p. 22-24.; Vandenborre I., Frese, M. J, p. 589. 10 Baker, Jonathan B. and Chevalier, Judith A., p. 22-24.