Analysing Employment Practices In Automotive Sector: A Competition Law Perspective

I. Introduction

In scope of the Turkish Competition Board's ("Board") decision¹ regarding Doğuş Otomotiv Servis ve Ticaret A.Ş. ("Doğuş Otomotiv") negative clearance/exemption application, the Board decided that the practice of recommending base salaries for employee salaries among Doğuş Otomotiv's authorised dealers benefit from the Block Exemption Communiqué on Vertical Agreements No. 2002/2 ("Communiqué No. 2002/2").

II. The Board's Sectoral Analysis and Assessments on the Relevant Product Market

With regards to the sector, the Board acknowledged that the automotive sector is characterized by product differentiation and that high competition in the market relies not only on pricing but also on several other factors. Effective marketing, prompt responses to changing demands, the ability to develop new models, a diverse product range, and a broad service network are all crucial elements of competition in the market.