Competition Law for Consumers
Entrance
Competition law is one of the most important branches of law guaranteeing the healthy functioning of a free market economy. In Turkey, the Law No. 4054 on the Protection of Competition ("RKHK") aims both to protect competition among undertakings and to improve the welfare of end consumers. Competition not only enables firms to operate more effectively, innovatively, and efficiently in the market; it also guarantees consumers access to higher quality goods and services at more affordable prices.
This article will examine in detail the consequences of Law No. 4054 for consumers, its areas of application, and current assessments arising from the decisions of the Competition Board.
I. The Consumer-Oriented Aim of Competition Law
The fundamental aim of competition law is to prevent any restrictions on competition that disrupt market order and may harm consumers. Article 1 of Law No. 4054 clearly states this:
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The purpose of the law is to prevent agreements, decisions, and practices that hinder, distort, or restrict competition in the markets for goods and services , to prevent the abuse of dominant position , and to make the necessary regulations and controls to ensure competition.
Therefore, although the Law does not directly aim to protect the consumer, it indirectly aims to increase the economic well-being of the consumer. Because in markets where competition is not protected:
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Prices rise,
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Quality decreases,
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Innovation is hindered,
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Consumer options decrease.
II. Fundamental Prohibitions Protecting Consumers
1. Agreements Restricting Competition (Article 4)
Article 4 of the law prohibits agreements that restrict competition between undertakings. The prohibitions that directly affect consumers within this scope are as follows:
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Price Fixing: When competing firms agree on how to set prices, it prevents consumers from benefiting from competitive pricing.
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Territory or Customer Sharing: When companies divide the market, it makes it more difficult for consumers to access the goods or services they want.
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Bidding Cartels: In public tenders, companies colluding on prices or terms to eliminate competition harms the public, who are the consumers.
Example Decision: In its decision numbered 2013/825-349, the Competition Board identified parallel behaviors of fuel distribution companies aimed at price fixing and imposed administrative fines; thus, preventing consumers from facing high prices.
2. Abuse of Dominant Position (Article 6)
Businesses that hold a dominant position in the market may abuse their power to harm consumers. This is prohibited under Article 6 of the Law.
Examples of abuse:
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Excessive pricing: The act of a dominant undertaking setting prices that are excessively high in relation to its costs.
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Predatory pricing: Selling below cost to eliminate competitors from the market, then raising prices.
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Tying and bundling: Forcing a consumer who wants to buy one product to also buy another.
Court of Cassation Practice: In its decision numbered 2017/4358 E., 2019/2211 K., the 11th Civil Chamber of the Court of Cassation confirmed that the Competition Board's decision regarding the abuse of judicial position had an aspect that protected consumer interests.
3. Control of Mergers and Acquisitions (Article 7)
From a consumer perspective, one of the most critical elements of competition law the control of mergers and acquisitions. This is because large corporate mergers can lead to market monopolies.
According to Article 7 of Law No. 4054, mergers and acquisitions exceeding certain thresholds must be reported to and approved by the Competition Board. The Board prevents the risk of monopolization that could negatively impact consumer welfare.
Example: In 2018, Yemeksepeti's strategies towards competing businesses were examined; and whether consumers were harmed in terms of restaurant selection and pricing was evaluated.
III. Consumers' Rights Against Competition Law Violations
1. Right to File a Complaint with the Competition Board
Consumers who have suffered direct or indirect harm can apply to the Competition Board. The Board examines the complaint and, if deemed necessary, initiates an investigation.
2. Right to File a Compensation Claim
Articles 57 and subsequent articles of Law No. 4054 grant consumers the right to file compensation claims . Accordingly:
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A consumer who suffers damage due to an anti-competitive agreement or abuse may claim compensation up to three times the amount of the damage
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This situation shows that consumers can resort not only to administrative sanctions but also to individual compensation avenues.
2016/352 E., 2017/1134 K. , the 13th Civil Chamber of the Supreme Court of Appeals accepted that consumers can be compensated for damages suffered due to anti-competitive practices.
IV. The Relationship Between Competition Law and Consumer Law
Law No. 4054 and Law No. 6502 on Consumer Protection are considered together, consumer protection becomes much stronger.
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Competition law: Regulates the structure of the market.
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Consumer law: Addresses imbalances in individual consumer contracts.
For example, the failure to repair an electronic device under warranty falls under consumer law, while price agreements between companies in the same sector fall under competition law. However, in both cases, the consumer is protected.
V. Emphasis on the Consumer in Competition Board Decisions
Consumer welfare is one of the fundamental criteria in the decisions of the Competition Board. In its assessments, the Board takes the following questions into consideration:
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How is consumer access to prices affected?
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Will the variety of products and services decrease?
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Will the quality decrease?
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Will innovation be hindered?
Examples of Decisions:
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Decision No. 2011/56-171: It has been determined that banks' parallel practices regarding credit card fees harm consumers.
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Decision No. 2020/49-658: In the investigation into the abuse of dominant position in the digital platform market, the consumer's freedom of choice was emphasized.
VI. Digital Markets and Consumer Rights
Today, consumers are most influenced by digital platforms. Antitrust violations in e-commerce, online marketplaces, and digital advertising are frequently discussed.
The application of Law No. 4054 to digital markets is important for the following reasons:
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Price fixing through algorithms can directly affect consumers.
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Data dominationcan lead to the misuse of consumers' personal information and the creation of monopolies.
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Platform dependencycan prevent consumers from accessing alternative services.
The Digital Markets Act (DMA) and the Digital Services Act (DSA) enacted in the European Union are being used as models by the Competition Board in Turkey; this contributes to the protection of consumers in digital markets.
VII. The Role and Awareness of Consumers
The effectiveness of competition law is not limited solely to the activities of the Competition Board and the courts. Consumer awareness is also of great importance
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Reporting suspicious price movements to the Competition Board,
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To file a compensation lawsuit against the oppressive practices of dominant companies
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Taking collective action through consumer organizations,
These are factors that directly increase consumer welfare.
Conclusion and Evaluation
Law No. 4054 on the Protection of Competition is critically important for the healthy functioning of a free market economy in Türkiye. Although the aim of the Law is not directly to protect the consumer, the protection of competition ensures that consumers benefit from lower prices, higher quality, variety, and innovation.
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Article 4 protects consumer welfare by prohibiting cartels and price agreements.
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Article 6 prevents the abuse of dominant position and ensures that consumers have fair choices.
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Article 7 regulates mergers and acquisitions to prevent monopolies.
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the right to compensation , consumers can claim up to three times the amount of their damages.
In conclusion, competition law is a system that not only ensures a balance between undertakings but also guarantees consumer protection. Therefore, it is of great importance for consumers to be informed, to know their rights, and to apply to the Competition Board when necessary.
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