As specified in the previous edition of our Legal Newsletter, the Draft Law on the Amendments to the Competition Protection Law remains on the agenda of the Justice Commission. One significant proposed amendment is related to the provisions regarding mergers and acquisitions. In the Draft Law the section on mergers and acquisitions has been re-drafted under the title “Concentration Transactions”. Accordingly, it is proposed that the definition of “concentration” become compliant with the Council Regulation (EC) No. 139/2004. A second significant proposed amendment is the adoption of the de-minimis rule through the communiqué to be enacted by the Competition Board for the purpose of agreements and concerted practices between undertakings, as well as decisions and practices of associations of undertakings.

The sub-commission report on the Draft Law on the Amendments to the Law on the Protection of Competition has been completed and sent to the main commission. One of the significant amendments to be made is related to mergers and acquisitions.

Within the current version of the said draft law, the section on mergers and acquisitions has been re-drafted under the title "Concentration Transactions". Accordingly, the definition of "concentration" has been made in compliance with the Council Regulation (EC) No. 139/2004.

Another proposed significant amendment is the adopting of the de-minimis rule through the communiqué to be issued by the Competition Board for the purpose of agreements and concerted practices between undertakings, as well as decisions and practices of associations of undertakings.

The Communiqué on the Prevention of Unfair Competition on Imports, prepared by the Undersecretariat of Foreign Trade enacted on 6 March 2009 introduces amendments with respect to the revision of tariff headings and the classification of the merchandise subject to anti-dumping.

The Competition Authority of Turkey has announced a leniency policy by way of introducing the Regulation on the Active Collaboration to Reveal Cartels on 15 February 2009. This leniency policy offers undertakings involved in a cartel and which thereafter self-report and hand over evidence total immunity or a reduction on fines which would otherwise be imposed on them and on their relevant employees. In order to qualify for leniency, the cartel members are required to reveal, actively collaborate with the Competition Authority and prove the cartel infringement in line with the conditions specified in the Regulation.

The Regulation on Fines to be Imposed in the case of Restraining Competition by way of Agreements, Decisions and Concerted Practices and Abuse of Dominant Position was amended on 15 February 2009 with the aim of creating transparency and equality for the purpose of determining penalty processes and the establishment of a new detailed calculation method for fines that can be imposed on undertakings, the organisation of such undertakings, and their managers and employees who act contrary to Article 4 and 6 of the Law on Protection of Competition (Law No. 4054). The amendments also impose a new penalty system on the basis of percentages applicable on the gross income of the undertakings, instead of fixed penalties. Such a replacement, in most of the cases, will cause an increase in penalties.