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Board fined Four Undertakings Active in the Tourism Sector of Antalya TRY 8.2 million !

The Board has held its decision on four undertakings active in the tourism sector of Antalya, which is a very popular touristic destination in Turkey, especially for foreign tourists.

The main claim was that four undertakings (which are Alkan Grup Turizm İşletmeleri A.Ş., Antalya Pegas Otelcilik Turizm İnşaat Taşımacılık ve Ticaret Ltd. Şti., Odeon Turizm İşletmeciliği A.Ş. and V Turizm Seyahat Acentalığı Taşımacılık İnş. Tic. A.Ş.) acted in anti-competitive cooperation by way of horizontal and vertical agreements and therefore hindered competition (especially activities of their competitors) in the market.

In its decision held on 21.11.2016, the Board decided that these four undertakings violated Article 4 of the Act No. 4054 (i.e. the article prohibiting any anti-competitive agreement, concerted practices, and decisions of association of undertakings) and therefore applied fines totaling to TRY 8.3 million. Please find the table of the fines applied below:

Fined Undertakings Turnover % Fines in TRY
Alkan Grup Turizm İşletmeleri A.Ş. 0.35 1,933,445.40
Antalya Pegas Otelcilik Turizm İnşaat Taşımacılık ve Ticaret Ltd. Şti. 0.35 2,857,031.67
Odeon Turizm İşletmeciliği A.Ş. 0.35 3,460,081.07
V Turizm Seyahat Acentalığı Taşımacılık İnş. Tic. A.Ş. 0.12 77,411.76
Total Fine 8.327.969,90

Note that for the time being, only the short form decision is available on the web page, and we do not know details of the violation. On the other hand, it is possible for us to determine that the Board did not consider the violations cartel, but other violations, taking into account the parties’ market power and potential negative effects caused by  the violation. Therefore, the base fine is determined between 0.05 and %3 (it is likely that the lowest threshold was applied). The Board also applied a decrease in fine considering the mitigating factors. Therefore, the fines applied even remain below the lowest base fine that the Board can apply, which gives us the impression that the Board acted pro-undertaking in the present case.

It is important to underline that the decision is not finalized yet, and it is possible to appeal the case before the administrative courts of Ankara.

Att. İsmail Ünal Doğan

Doğan Law Office

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