A Cross-Jurisdictional View On Fulfillment Contracts: EU And Turkish Competition Law

Introduction

The introduction of the concept of "fulfillment contracts" under the European Union's revised Vertical Block Exemption Regulation ("VBER") and its Guidelines on Vertical Restraints has created a structured exception to the prohibition on resale price maintenance ("RPM") in vertical agreements. These contracts allow suppliers to impose fixed resale prices on buyers under specific conditions, particularly when fulfilling prior agreements concluded between the supplier and a specific customer.

In Turkey, vertical agreements are scrutinized under Article 4 of the Act No. 4054 on the Protection of Competition ("Turkish Competition Act")¹, which prohibits agreements that restrict competition. While RPM is considered a hardcore restriction under Turkish law, certain exceptions in the Turkish Vertical Agreements Guidelines, particularly regarding agency models, suggest alignment possibilities for similar practices like fulfillment contracts.