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ARTICLE · 16 JANUARY 2017

Turkish Competition Board Fines Booking.com 2.5 Million Lira

Moroglu Arseven
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The Turkish Competition Board ("Board") recently published a short-form decision concluding that Booking.com B.V. had breached Article 4 of Law on Protection of Competition Number 4054, by its contacts with partner accommodation facilities including price and quota parity, ...

TurkeyAntitrust/Competition Law
Moroğlu Arseven
Moroğlu Arseven
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The Turkish Competition Board ("Board") recently published a short-form decision concluding that Booking.com B.V. had breached Article 4 of Law on Protection of Competition Number 4054, by its contacts with partner accommodation facilities including price and quota parity, as well as most favored customer clauses ("MFC Clauses"). Accordingly, the Board imposed an administrative monetary fine of 2,543,992 TL.

The Board recognized MFC Clauses as violations for the first time in June 2016, imposing a 427,977 TL fine on major online platform Yemeksepeti (more). In the Yemeksepeti decision, the Board stated that MFC Clauses are effectively price protection mechanisms within supply contracts. Their overall effect is that the seller cannot offer a lower price on other platforms and this creates an exclusionist effect on the market.

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