TURKISH COMPETITON AUTHORITY REJECTED THE REQUEST FOR NEGATIVE CLEARENCE

16/03/2020

Turkish Competition Authority rejected to provide negative clearance to the Dealership Agreement signed between Kimyevi Maddeler San. ve Tic. A.Ş. (KALEKİM) and the distributors.

KALEKİM as a subsidiary company of Kale Group, operates in the production of ceramic adhesive and joint fillers and building chemicals. The contract subject to the notification, as a vertical agreement and regulates the conditions of purchase and sale between Kalekim operating at provider level and authorized dealers at retailer level, is within the scope of the Communiqué No 2002/2. Regarding the agreement TCA determined that;

• KALEKİM has the authority to determine the maximum price and recommended price of the mentioned products,
• The rebate system set out in the Agreement may lead to exclusivity,
• The agreement involve selective distribution system.

Finaly TCA determined that the agreement falls within the scope of Article 4 of the Law No. 4054 and a negative clearance cannot be issued.