Brief

On 09/01/2025, the Turkish Competition Authority issued a decision concluding an investigation into undertakings operating in the Niğde province's elevator maintenance and repair market. The investigation found that these undertakings engaged in price-fixing and customer-allocation practices, violating Article 4 of the Act no 4054 on the Protection of Competition, and imposed administrative fines ranging from 1,866.58-TL to 35,344.65-TL on seven undertakings.

The investigation conducted in accordance with the Competition Board decision dated 15.08.2024 and numbered 24-33/786-M to determine whether some undertakings operating in the Niğde province in the field of elevator maintenance and repair violated Article 4 of the Act no 4054 on the Protection of Competition through price fixing and customer allocation has been concluded.
The settlement texts submitted by all of the parties to the investigation during the ongoing investigation process, based on the interim decision of the Board, was accepted by the Competition Board decision dated 09.01.2025 and numbered 25-01/27-22, and the investigation was concluded for all undertakings with settlements.
In this framework, all of the undertakings investigated accepted that they engaged in practices aimed at fixing prices and allocating customers in concert with their competitors in the elevator maintenance and repair market, and thus violated Article 4 of the Act no 4054 on the Protection of Competition. Since the investigation was concluded via settlement for all undertakings, a 25% discount was applied to the administrative fines and the following fines were imposed:

225.816,89-TL on Anıl Asansör İnşaat Turizm Ticaret Sanayi Ltd. Şti.,
26.469,60-TL on Bor Asansör – Fatih KİRAZCI and Ferdi ÖZDOĞAN,
2.360,83-TL on Bor Konfor Asansör – Mehmet DOĞRU,
12.790,04-TL on Çağrı Asansör – Yunus SALCAN,
1.866,58-TL on Dmr Asansör – Kürşat DEMİR,
3.794,36-TL on EÇ Asansör – Ergün ÇIBUK,
29.284,90-TL on Kardeşler Avcı Asansör Makine Sanayi ve Ltd. Şti,
22.148,51- TL on Niğde Asansör – Ecevit TAPIK,
18.106,80-TL on Sis-Tek Asansör – Muhammet YENİGÜL,
2.803,69-TL on Strong Asansör – Kadir ARIKAN,
35.344,65-TL on Tyana Asönsör İnşaat – Bülent MERT,
17.661,52- TL on UGR Asansör – Uğur SOYÖZ,
14.544,35-TL on Upas Asansör – Ethem BEREKE, and
5.958,42-TL on 51 Asansör – Fuat ARSLAN.

As known, under the settlement procedure introduced into the competition law legislation with the amendment made into Article 43.5 of the Act no 4054 on the Protection of Competition by the Act no dated 16.06.2020 and numbered 7246, the Board may, on the request of the parties concerned or on its own initiative, launch the settlement procedure and terminate the investigation after taking into consideration the procedural benefits that may arise from a rapid conclusion of the investigation process and the varying opinions concerning the existence or scope of the infringement. Click here for the text of the pronouncement for the decision dated 09.01.2025 and numbered 25-01/27-22.

Highlights content goes here...

Purpose

The purpose of this update is to report on an investigation conducted by the Competition Board into allegations of price fixing and customer allocation in the elevator maintenance and repair market operating in the Niğde province. The investigation aimed to determine whether certain undertakings had violated Article 4 of the Act no 4054 on the Protection of Competition.

Effects on Industry

The conclusion of this investigation via settlement has significant effects on the industry. All undertakings involved accepted that they engaged in practices aimed at fixing prices and allocating customers, thereby violating competition law. This development may lead to a shift in market dynamics as these companies adjust their business strategies to comply with competition regulations. The imposition of administrative fines on these undertakings will also have a financial impact on the industry.

Relevant Stakeholders

The stakeholders affected by this update include businesses operating in the elevator maintenance and repair market, particularly those involved in the investigation. Consumers who rely on these services for their elevators may indirectly benefit from improved competition and pricing practices within the market. The Competition Board’s actions serve as a reminder to all market participants of the importance of complying with competition laws.

Next Steps

To comply with this update, businesses operating in similar markets should review their business practices to ensure they are not engaging in any anti-competitive behaviors such as price fixing or customer allocation. Companies found to be violating competition law may face similar investigations and fines. Market participants should also take steps to improve transparency and fair competition within the market.

Any Other Relevant Information

This update marks one of the first instances where the settlement procedure introduced into the competition law legislation has been used in a case involving price fixing and customer allocation. The Competition Board’s application of this procedure allows for a faster conclusion of investigations, providing procedural benefits for all parties involved. This development may pave the way for more efficient resolution of similar cases in the future.

Turkish Competition Authority

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