Turkish Competition Board Fines Dominant Chlor-Alkali Producer For Predatory Pricing

The Turkish Competition Board (the “Board”) has recently published its reasoned decision¹ imposing an administrative fine of TRY 164,484,083.28 on Koruma Klor Alkali Sanayi ve Ticaret Anonim Şirketi (“Koruma Klor”). The Board found that Koruma Klor abused its dominant position by engaging in predatory pricing in the hydrochloric acid, sodium hypochlorite and ferric chloride markets, in breach of Article 6 of Law No. 4054 on the Protection of Competition (the “Competition Law”).

The Board found that Koruma Klor’s below-cost sales targeted new entrants, particularly in specific regions, customer accounts and public tenders. Its assessment combined detailed price-cost comparisons with evidence of an exclusionary strategy. It also rejected the argument that the profitability of Koruma Klor’s overall product portfolio ruled out a finding of predation.