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Competition Authority imposes millions in TL fines on domestic motor company VOLTA

  • July 18, 2024
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Competition Authority, Domestic Motorcycle Manufacturing Company VOLTA He made a remarkable statement about this. In the statement, the company was accused of violating Article 4 of Law No.

Competition Authority imposes millions in TL fines on domestic motor company VOLTA

Competition Authority, Domestic Motorcycle Manufacturing Company VOLTA He made a remarkable statement about this. In the statement, the company was accused of violating Article 4 of Law No. 4054 on the protection of competition. fined was expressed. The fine imposed on the company as part of the investigation, 6 million 584 thousand 515 TL It was recorded as.

According to the statement of the Competition Authority, VOLTA, determination of sales prices It was included in the scope of the investigation due to allegations that it imposed regional and customer restrictions on its sellers. As part of this investigation, the company has acted against the law detected.

The Competition Authority’s statement reads as follows:

Competition Authority Volta Penalty

By the decision of the Competition Council dated 07.12.2023 and numbered 23-56/1128-M, the Volta Motor Industry and Trade Joint Stock Company (VOLTA) was subject to the Law on the Protection of Competition No. 4054 regarding the determination of the resale price and the claims of regional and customer restrictions applied to its resellers. It was decided to conduct a preliminary investigation into the accusation of violation of the law.

In the context of the information and documents obtained during the preliminary investigation and the investigations carried out; It was evaluated that the system members in the distribution system of VOLTA intervened in the freedom of price setting and that some provisions in the contracts it concluded with its resellers had the character of regional and customer restrictions. It was decided to open an investigation with article 41 of the same law to determine whether there was a violation of article 4 of law no. 4054.

The research in question;
– The decision of the Competition Council dated 24.04.2024 and numbered 24-20/460-194 concluded with a compromise regarding the allegations concerning the determination of the resale price and imposed an administrative fine of TL 6,584,515.20 on the company,
– With the decision of the Competition Council of 04.07.2024 and numbered 24-28/671-276, the restriction of regions and customers applicable to resellers will be terminated with a commitment in terms of their claims,
decided.

What does Article 4 of Law No. 4054 on the protection of competition say?

Competition Authority

Agreements, concerted practices and decisions that restrict competition

Article 4 – Agreements between undertakings, concerted practices and similar decisions and actions by associations of undertakings which have as their object, directly or indirectly, the prevention, distortion or restriction of competition in a particular market for goods or services, or which have or may have as their effect such prevention, distortion or restriction, are unlawful and prohibited.

These situations are in particular:

a) Determining the purchase or sale price of goods or services, the factors that determine the price, such as costs and profits, and all kinds of purchase or sale conditions,
b) Sharing or controlling all kinds of market resources or elements by dividing up markets for goods or services,
c) Controlling the quantity of supply or demand for goods or services or determining it outside the market,
d) Complicating or restricting the activities of competing undertakings, or excluding undertakings active in the market by means of boycotts or other conduct, or preventing new entrants from entering the market,
e) Applying different conditions to persons of equal status for equal rights, obligations and actions, except for exclusive franchise;
f) Contrary to the nature of the contract or commercial practice, requiring the purchase of another good or service together with a good or service, or making a good or service requested by buyers acting as intermediaries dependent on the display of another good or service by the buyer, or imposing conditions as to the resupply of a purchased good or service,

In cases where the existence of an agreement cannot be proven, the fact that price changes on the market or in the balance between supply and demand or in the areas of activity of the undertakings are comparable to those on markets where competition is prevented, distorted or restricted, creates a presumption that the undertakings are engaged in concerted action.

Provided it is based on economic and rational facts, either party can avoid liability by proving that they did not act in concert.

Source: Web Tekno

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