Investıgation Procedure of Competition Authority Has Been Amended
A. INTRODUCTION
Law No. 7511 on the Amendment of the Turkish Commercial Code and Certain Laws (the “Amendment Law”) published in the Official Gazette dated May 29, 2024 and numbered 32560 introduced some important amendments to the investigation proceedings of the Act No. 4054 on the Protection of Competition (the “Competition Act”). The Amendment Law aims to make the investigation proceedings more effective and expeditious.
B. SIGNIFICANT AMENDMENTS
1. Amendments Regarding the First Written Defense
Prior to the Amendment Law, the second subsection of the art. 43 of the Competition Act titled as “Commencement of Investigation, Undertaking and Settlement” stipulated that the parties would submit their first written defense within 30 days upon notification of the Competition Board's (“Board”) decision to commence an investigation within 15 days from the date of the decision.
The Amendment Law amended the aforementioned provision and abolished the first written defense stage. Accordingly, the Board shall notify the parties within 15 days from the date it decides to commence an investigation and shall send sufficient information about the type and nature of the claims to the relevant parties together with this notification letter, but the relevant parties will not be required to submit their first defense upon this notification.
In the rationale of the Amendment Law regarding the aforementioned amendment, it was pointed out that at this stage, there has not yet been an allegation of a violation regarding the allegations subject to the investigation and that it is important to know the allegation and the evidence that forms the basis of the claims in order to effectively utilize the right to defense, and that the obligation of the undertakings to submit a written defense at the stage of notification of the investigation notification has been abolished in order to ensure a more effective defense and a faster investigation proceedings.
2. Amendments Regarding the Additional Written Opinion and the Third Written Defense
Pursuant to the first subsection of the article 45 titled as “Notification and Defense” of the Competition Act, the parties are required to submit their written defenses against the investigation report, to the Board within 30 days, and the Board shall issue an additional written opinion within 15 days upon these written defenses.
With the Amendment Law, the Board's obligation to submit an additional written opinion is limited only in the event of a change in the Board's opinion in the investigation report, in order to prevent extension of the proceedings though no new issues are raised in the additional written opinion.
The Amendment Law further abolishes the provision that the 15-day period for the Board to submit an additional opinion and the extension of the 30-day period granted to parties to submit defenses on additional opinions of the Board, up to a maximum of one time.
C. CONCLUSION
The Amendment Law includes significant amendments to the investigation proceeding carried out by the Board under the Competition Act and the amendments have come into effect as of the publication date, May 29, 2024.
For further information and support, you may contact as at info@lbfpartners.com.
LBF Partners
Law No. 7511 on the Amendment of the Turkish Commercial Code and Certain Laws (the “Amendment Law”) published in the Official Gazette dated May 29, 2024 and numbered 32560 introduced some important amendments to the investigation proceedings of the Act No. 4054 on the Protection of Competition (the “Competition Act”). The Amendment Law aims to make the investigation proceedings more effective and expeditious.
B. SIGNIFICANT AMENDMENTS
1. Amendments Regarding the First Written Defense
Prior to the Amendment Law, the second subsection of the art. 43 of the Competition Act titled as “Commencement of Investigation, Undertaking and Settlement” stipulated that the parties would submit their first written defense within 30 days upon notification of the Competition Board's (“Board”) decision to commence an investigation within 15 days from the date of the decision.
The Amendment Law amended the aforementioned provision and abolished the first written defense stage. Accordingly, the Board shall notify the parties within 15 days from the date it decides to commence an investigation and shall send sufficient information about the type and nature of the claims to the relevant parties together with this notification letter, but the relevant parties will not be required to submit their first defense upon this notification.
In the rationale of the Amendment Law regarding the aforementioned amendment, it was pointed out that at this stage, there has not yet been an allegation of a violation regarding the allegations subject to the investigation and that it is important to know the allegation and the evidence that forms the basis of the claims in order to effectively utilize the right to defense, and that the obligation of the undertakings to submit a written defense at the stage of notification of the investigation notification has been abolished in order to ensure a more effective defense and a faster investigation proceedings.
2. Amendments Regarding the Additional Written Opinion and the Third Written Defense
Pursuant to the first subsection of the article 45 titled as “Notification and Defense” of the Competition Act, the parties are required to submit their written defenses against the investigation report, to the Board within 30 days, and the Board shall issue an additional written opinion within 15 days upon these written defenses.
With the Amendment Law, the Board's obligation to submit an additional written opinion is limited only in the event of a change in the Board's opinion in the investigation report, in order to prevent extension of the proceedings though no new issues are raised in the additional written opinion.
The Amendment Law further abolishes the provision that the 15-day period for the Board to submit an additional opinion and the extension of the 30-day period granted to parties to submit defenses on additional opinions of the Board, up to a maximum of one time.
C. CONCLUSION
The Amendment Law includes significant amendments to the investigation proceeding carried out by the Board under the Competition Act and the amendments have come into effect as of the publication date, May 29, 2024.
For further information and support, you may contact as at info@lbfpartners.com.
LBF Partners
e.copur@lbfpartners.com