Pay Extra Attention When Setting Up JVs Between Competitors In Turkey And Stick By The Rules!

A joint venture ("JV") set up between competing entities is subject to evaluation under the merger control regime as well as rules governing horizontal cooperation agreements. The Turkish Competition Authority's (the "TCA") analysis depends heavily on the nature and function of the JV, the relationship of the parties to the JV, as well as the dynamics of the market.

For a JV transaction to qualify for a merger control analysis the JV must have a fully functional nature. Overall, a full functionality assessment requires examination of whether the JV is independent from its parent companies in operational respects [with its own management body and sufficient resources, including finance, staff and assets (tangible and intangible) in the relevant market] and whether the JV is planned to operate on a lasting basis.