NEWSLETTER-2019-metin

121 COMPETITION LAW substitution will be the other online platforms that function in the same manner. Excessive Pricing “Excessive pricing,” which is the violation type examined in the Decision, is considered to be the price that a dominant undertaking cannot implement under competitive conditions, and is significantly above the economic value of the products/services it offers. It is observed that the “Economic Value Test” (“EVT”) forms the basis of the applications utilized for the determination of the exces- sive pricing, and the methods developed later are based on the basic framework drawn by the EVT. In the first phase of the EVT, which is a two-stage test, the price and cost of the products/services are com- pared. In the second stage, the examined price is compared to itself, or to the prices of competing products/services. The EVT is a method that is criticized in many ways as discussed in the Decision. In accordance with the Decision, the Competition Board takes the concept of economic value as a basis that is in line with the European Union practices in the determination of excessive pricing, and gives priority to the price comparison in its evaluations. The Board resorts to the cost calculation only in cases where the cost can be clearly and undoubtedly determined, and this approach is considered to be lawful by the Council of State of Turkey. Dominant Position It is necessary to first determine that the undertaking is dominant in order to conclude whether there is an excessive pricing violation. In this context, whether Sahibinden.com held the dominant position in the defined markets is evaluated in terms of its market share in the relevant markets, as well as other market data and entry barriers. In the Decision, it is determined that Sahibinden.com is dominant in the relevant markets by referring to the following points: • Sahibinden.com has high market power in the relevant mar- kets. In the demonstration of Sahibinden.com’s position in the market, data pertaining to price, number of visits, num-