Turkish Competition Law: Definitive & Strategic Guide in 2026

Turkish competition law is a cornerstone of Türkiye’s modern commercial legal framework. As the Turkish economy continues to integrate with global markets and attract foreign investment, compliance with competition rules has become a strategic priority for both domestic and international companies.

In 2026, enforcement trends, regulatory sophistication, and financial penalties under Turkish competition law are stronger and more nuanced than ever before.

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At Finlexia Turkish Accounting Firm, we have advised local and multinational corporations on Turkish company formation, regulatory compliance, and governance matters since 2017. Our competition law practice combines legal precision with commercial insight, ensuring that businesses can operate confidently while mitigating regulatory risk.

Our corporate lawyers team explains the fundamentals of Turkish competition law, enforcement mechanisms, merger control, compliance obligations, and the practical implications for companies doing business in Türkiye.

Overview of Turkish Competition Law Framework

Turkish competition law is primarily governed by Law No. 4054 on the Protection of Competition, which entered into force in 1997. The law is closely aligned with EU competition legislation and is enforced by the Turkish Competition Authority (TCA) and its decision-making body, the Competition Board.

The core objectives of Turkish competition law include:

• Preventing anti-competitive agreements and practices
• Prohibiting abuse of dominant market positions
• Regulating mergers and acquisitions to prevent market concentration
• Promoting fair competition and consumer welfare

The Competition Authority has broad investigative powers, including dawn raids, data seizures, and administrative sanctions, making compliance a critical corporate responsibility.

Anti-Competitive Agreements and Cartel Prohibition

One of the most rigorously enforced areas of Turkish competition law is the prohibition of anti-competitive agreements. Article 4 of Law No. 4054 bans agreements, concerted practices, and decisions by associations of undertakings that restrict competition.

Common violations include:

• Price fixing
• Market or customer sharing
• Bid rigging
• Limiting production or supply
• Exchange of competitively sensitive information

Both written and verbal agreements may fall within the scope of prohibition. Even informal coordination can result in significant administrative fines. Certain agreements may benefit from exemption if they improve efficiency, enhance consumer benefits, and do not eliminate competition entirely.

Well-structured contract drafting plays a vital role in ensuring that commercial agreements comply with competition law requirements while protecting business interests.

Abuse of Dominant Position

Article 6 of the Competition Law prohibits the abuse of a dominant market position. Dominance itself is not illegal; however, conduct that distorts competition is strictly sanctioned.

Examples of abusive practices include:

• Predatory pricing
• Refusal to supply
• Tying and bundling
• Discriminatory pricing
• Excessive pricing

The Competition Board evaluates dominance based on market share, entry barriers, buyer power, and economic independence. Companies with substantial market power must exercise heightened caution in pricing, distribution, and strategic decisions.

Effective corporate governance frameworks are essential to ensure that executives and compliance teams understand and manage competition-related risks proactively.

Merger Control and Competition Clearance

Merger control is a central component of Turkish competition law. Transactions that result in a permanent change of control must be notified to the Turkish Competition Authority if specific turnover thresholds are met.

Notifiable transactions include:

• Mergers between independent undertakings
• Acquisitions of shares or assets
• Joint ventures with full-function characteristics

The Competition Board reviews transactions to determine whether they significantly impede effective competition, particularly through the creation or strengthening of a dominant position.

Failure to notify a reportable transaction may result in:

• Administrative fines
• Transaction invalidity under Turkish law
• Structural or behavioral remedies

Legal support during mergers and acquisitions processes ensures regulatory clearance while safeguarding transaction timelines and commercial objectives.

Investigations, Dawn Raids, and Sanctions

The Turkish Competition Authority is known for its active enforcement approach. Investigations may be initiated ex officio or based on complaints from competitors, customers, or whistleblowers.

Key enforcement tools include:

• Unannounced on-site inspections (dawn raids)
• Digital forensic examinations
• Written information requests
• Witness statements

Administrative fines can reach up to 10% of a company’s annual turnover generated in Türkiye. In addition, managers and employees may face individual fines for obstructing investigations.

Companies are advised to implement internal compliance programs and dawn raid response protocols to minimize operational disruption and legal exposure.

Leniency Program and Settlement Mechanisms

Turkish competition law offers a leniency regime for cartel participants who cooperate with the Competition Authority. Companies that provide decisive evidence may benefit from full immunity or substantial reductions in fines.

Key features of the leniency program include:

• Confidential application procedures
• Protection for cooperating executives and employees
• Significant fine reductions depending on timing and contribution

In recent years, settlement and commitment mechanisms have also gained prominence, allowing companies to resolve investigations more efficiently while limiting reputational damage.

Strategic legal counsel is critical in determining whether cooperation, settlement, or defense is the most appropriate course of action.

Private Enforcement and Litigation Risks

In addition to administrative sanctions, competition law violations may trigger civil liability. Injured parties may file compensation claims before Turkish courts, seeking damages for losses caused by anti-competitive conduct.

Competition-related disputes may arise in the context of distribution agreements, franchise arrangements, shareholder conflicts, and post-transaction disputes. Experienced representation in corporate litigation is essential to manage these complex and high-stakes cases effectively.

Competition Law and Corporate Restructuring

Competition law considerations also arise during corporate restructuring, insolvency, and market exit strategies. Transactions involving asset transfers, divestments, or winding-up processes must be assessed carefully to avoid regulatory complications.

Legal oversight during company liquidation ensures compliance with competition rules while protecting directors, shareholders, and creditors from potential liabilities.

Why Competition Compliance Is a Strategic Imperative

In 2026, Turkish competition law is no longer a purely regulatory concern—it is a strategic business issue. Robust compliance enhances corporate reputation, reduces financial risk, and supports sustainable growth in competitive markets.

Companies operating in Türkiye should:

• Conduct regular competition law audits
• Train executives and sales teams
• Review pricing and distribution strategies
• Align compliance with broader governance policies

Early legal guidance significantly reduces the risk of investigations and sanctions.

Contact us for Turkish Competition Law Regulations

Navigating Turkish competition law requires deep expertise, practical experience, and strategic thinking. Since 2017, Finlexia Turkish Accounting Firm has provided comprehensive competition law services to businesses operating in Turkey, from compliance program development through merger approvals and enforcement defense.

Our multilingual team of competition law specialists combines thorough knowledge of Turkish regulations with international best practices, ensuring your business achieves its objectives while maintaining full compliance.

Whether you need competition law due diligence for transactions, compliance program implementation, merger control filings, or representation in Competition Authority proceedings, our Istanbul-based team delivers exceptional results.

Contact Finlexia Turkish Accounting Firm today to discuss your competition law needs and discover how our experience can benefit your business in Turkey’s competitive marketplace.