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Substantive and Procedural Issues of Cement Sector Investigations in Turkey

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Stakheyeva H., Canbolat E.
Yearbook of Antitrust and Regulatory Studies
|
2017
|
vol. 10(16)
205-226
EN
In 2016, the Turkish Competition Authority (hereinafter, TCA) published the Cement Sector Inquiry Report (hereinafter, Cement Sector Report) following more than two years of market analysis. One of the reasons for conducting such a market inquiry was the fact that the implementation of competition rules and accuracy of the economic analysis by the TCA in cement cases were frequently criticized. In order to provide some guidance and have better understanding about the competitive dynamics of the cement market, the TCA initiated the inquiry in 2014. Another reason for the inquiry was the importance of the cement industry for the construction sector and the economy of Turkey, as well as numerous competition law concerns in this sector. The article provides an analysis of the substantive and procedural issues in the TCA activity in the cement sector in Turkey. Particular emphasis is placed on the assessment of the Cement Sector Report and common competition law violations in the sector in Turkey based on a review of the decisions of the TCA. Additionally, legal grounds for conducting sector inquiries in Turkey, as well as limits to and potential impact on the TCA’s powers to issue extensive compulsory information requests (in the light of the recent CJEU’s judgements in cement cartel cases) are discussed. Overall, the article provides the reader with a better understanding of the Turkish cement sector dynamics and most common anticompetitive practices there. In conclusion, it is argued that inspite of having a reputation of a “problematic sector”, the behaviour of cement producers and developments in the cement market in Turkey may be justified by economic reasons and the oligopolistic nature of this market.
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