The Regulation on Administrative Fines to Be Imposed in Cases of Restricestrictive Agreements, Concerted Practices, and Decisions, and Abuse of Dominant Position (“Regulation”), published in the Official Gazette dated December 27, 2024, and numbered 32765, has replaced the previous regulation dated February 5, 2009, and numbered 27142 on Administrative Fines to Be Imposed in Cases of Restrictive Agreements, Concerted Practices, and Decisions, and Abuse of Dominant Position (“Previous Regulation”). The Regulation introduces several amendments regarding the procedures and principles concerning administrative fines. The notable changes among these are outlined below.

With the Regulation, it has been emphasized that base fines will be determined separately for each violation. Under Article 5 of the Regulation, the distinction between “cartel” and “other violations” and corresponding minimum and maximum limits for base fine rates have been eliminated. A new methodology has been adopted, prioritizing the nature of the violation and its adverse effects on competition when determining the fine. In this regard, it has been stated that the base fine rate will be determined by increasing the initial fine based on the duration of the violation if the relevant conditions are met.

The newly adopted method particullarly emphasizes that the fine amount will first take into account aggravating factors, followed by mitigating factors. In this context, the aggravating and mitigating factors have been reviewed and revised.

Among the aggravating factors, the principle that the base fine rate may be increased up to double in cases of repeat violations remains in effect, with violations of Articles 4 and 6 of Law No. 4054 constituting the basis for such repeat violations. Furthermore, the Regulation situplates that the fine rate may be increased in cases where there is a determining role in the violation or breach of the confidentiality obligation under Article 12 of the Settlement Regulation. If multiple aggravating factors are present, it has been stated that the increase rates will be applied cumulatively.

The mitigating factors found in the Previous Regulation, such as encouragement by public authorities, voluntary compensation, and termination of violations, have been removed. Instead, new factors, such as “limited participation in the violation” and “the presence of overseas sales revenues within the annual gross income,” have been introduced.

Similarly, the Regulation stipulates that managers and employees of undertakings or associations of undertakings who are found to have a determining role in the violation may be subjected to administrative fines up to 5% of the fine imposed on the undertaking or association of undertakings, regardless of any any distinction between cartel and other violations.

Bahar Ülgen Hasşerbetçi
Partner | [email protected]
Can Yıldız
Associate | [email protected]